A snapshot of IFRS 19

Effective from 1 January 2027 (subject to the Standard being adopted for use in the UK)

IFRS 19 Subsidiaries without Public Accountability: Disclosures is a new reduced disclosure IFRS Accounting Standard. The objective of IFRS 19 is to enable eligible subsidiaries to simplify their reporting systems and processes, reducing the costs of preparing their financial statements, whilst maintaining the usefulness of financial information to users.

Scope of the Standard

An entity may elect to apply IFRS 19 in its consolidated, separate or individual financial statements if, at the end of the reporting period:

• it is a subsidiary;
• it does not have public accountability; and
• it has an ultimate or intermediate 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).

Recognition, Measurement and Presentation Requirements

IFRS 19 does not change the recognition, measurement or presentation requirements in other IFRS Accounting Standards. These must still be followed by entities applying IFRS 19.

Disclosure Requirements

The disclosure requirements in IFRS 19 are organised by IFRS Accounting Standard. A subsidiary applying IFRS 19 will apply the disclosure requirements set out under the subheading of that IFRS Accounting Standard in IFRS 19.

For example, the disclosure requirements for inventories are set out under the heading IAS 2 Inventories.

Statement of Compliance

IFRS 19 is part of IFRS Accounting Standards. An eligible subsidiary applying IFRS 19 asserts its compliance with IFRS Accounting Standards and states that it has applied IFRS 19.

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