IASB publishes IFRS 19

The International Accounting Standard Board (IASB) published a new accounting standard for subsidiaries on 9 May 2024. IFRS 19 Subsidiaries without Public Accountability: Disclosures allows certain subsidiaries to apply IFRS accounting standards with reduced disclosures in the notes.

IFRS 19 can be applied by a subsidiary if

• the subsidiary itself is not subject to public accountability and
• its parent company prepares IFRS consolidated financial statements.

Public accountability exists in particular if the subsidiary has listed equity or debt instruments on a public market.

If a subsidiary applies the full IFRS in its separate or consolidated financial statements, the optional application of IFRS 19 substantially reduces the scope of the disclosures in the notes compared to the other IFRS standards. However, the provisions on recognition, measurement and disclosure of the other IFRS standards must be applied.

A subsidiary that applies IFRS 19 must clearly state in its explicit and unreserved statement of compliance with IFRS that IFRS 19 has been applied.

IFRS 19 is effective for reporting periods beginning on or after 1 January 2027. Earlier application is permitted.

You can download the IASB's press release here.