IASB simplifies Financial Reporting for Eligible Subsidiary Companies

The International Accounting Standard Board (IASB) has issued a new IFRS Accounting Standard for subsidiaries. IFRS 19 Subsidiaries without Public Accountability: Disclosures permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. Applying IFRS 19 will reduce the cost of preparing subsidiaries’ financial statements while maintaining the usefulness of the information for users of their financial statements.

Subsidiaries are eligible to apply IFRS 19 if they do not have public accountability and their parent company applies IFRS Accounting Standards in their consolidated financial statements. A subsidiary does not have public accountability if it does not have equities or debt listed on a stock exchange and does not hold assets in a fiduciary capacity for a broad group of outsiders.

IFRS 19 and the Basis for Conclusions are available to IFRS Digital subscribers. You can purchase an IFRS Digital Subscription on https://shop.ifrs.org/product-detail?id=1595, or a PDF version of the Standard from https://shop.ifrs.org/product-detail?id=2204.

Support to implement IFRS 19 is available on https://www.ifrs.org/supporting-implementation/supporting-materials-by-ifrs-standards/ifrs-19/

To obtain more documents, along with IFRS 19, visit the completed project page on https://www.ifrs.org/projects/completed-projects/2024/subsidiaries-smes/