IASB: IFRS 19 - Subsidiaries without Public Accountability: Disclosures published

IASB: IFRS 19 - Subsidiaries without Public Accountability: Disclosures published

• 14 May 2024
• Financial Reporting
• South African Accounting Academy

This new IFRS standard would permit an eligible subsidiary to apply reduced disclosure requirements when applying IFRS Standards in its financial statements.

IFRS 19 has an effective date of 1 January 2027.

The IASB will undertake activities to support implementation and consistent application of the Standard.

A subsidiary is eligible if it:

• does not have public accountability; and
• has a parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards.

An entity has public accountability if:

• its debt or equity instruments are traded in a public market or it is in the process of issuing such instruments for trading in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets); or
• it holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses (for example, banks, credit unions, insurance companies, securities brokers/dealers, mutual funds and investment banks often meet this second criterion).

The actual standard is only available to users with an IFRS Digital subscription.

Click here to access the supporting materials:

https://www.ifrs.org/supporting-implementation/supporting-materials-by-ifrs-standards/ifrs-19/

Relevance to Auditors, Independent Reviewers & Accountants:

• As an auditor and independent reviewer, you need to consider your clients’ compliance with accounting standards.
• As an accountant and compiler of financial statements, you need to consider amendments to standards that are issued by the standard-setting bodies, e.g. IASB, IAASB, etc.
• This new IFRS19 will affect all Subsidiaries without Public Accountability.

Relevance to Your clients:

• An entity compiling filing financials need to consider amendments to standards that are issued by the standard-setting bodies, e.g. IASB, IAASB, etc.
• This new IFRS19 will affect all Subsidiaries without Public Accountability.

0 COMMENTS

LEAVE A COMMENT