The IASB issued the Exposure Draft ‘Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures’ on 30 July 2024.
The IASB will consider all comments received in writing by 27 November 2024.
IFRS 19, issued on 9 May 2024, is a voluntary IFRS Accounting Standard for use by subsidiaries without public accountability that prepare financial statements applying IFRS Accounting Standards. Details of the UKEB’s response to this project can be found on our project webpage here and information on the forthcoming endorsement assessment of IFRS 19 can be found here.
When IFRS 19 was issued in May 2024 it included reduced disclosures in respect of IFRS Accounting Standards issued before 28 February 2021. Disclosure requirements in new or amended IFRS Accounting Standards issued between 28 February 2021 and May 2024 were included in IFRS 19 without reductions because the IASB did not consult on reducing these requirements.
The ED proposes reductions to these disclosure requirements applying the principles for reducing disclosures that the IASB used in developing IFRS 19 and agreed to follow in maintaining the standard. These principles identify information users of financial statements of companies without public accountability are particularly interested in and include:
IFRS 19 is expected to be effective for annual reporting periods beginning on or after 1 January 2027, with early application permitted. The IASB has tentatively decided that the amendments resulting from the ED will have the same effective date as IFRS 19.
The ED proposes amendments to IFRS 19 in relation to:
The ED is consulting on the disclosure requirements in the Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7) issued on 30 May 2024 that included consequential amendments to IFRS 19.
In addition, the ED is consulting on the disclosure requirements for eligible subsidiaries in the forthcoming IFRS Accounting Standard Regulatory Assets and Regulatory Liabilities (RARL standard). The IASB is expected to issue the RARL standard in 2025.
The UKEB outreach plan includes discussions with targeted preparers and users including public consultation on the UKEB’s Draft Comment Letter.
If you would like to contribute to outreach work on this project, please email ukendorsementboard@endorsement-board.uk.
The UKEB published its Draft Comment Letter (DCL) on 25 September 2024 for public consultation. The consultation closes on 11 November 2024. The relevant documents are available at the end of this page:
The UKEB is broadly supportive of the ED proposals. The DCL identifies a few possible enhancements for the IASB to consider. In relation to the forthcoming IFRS Accounting Standard Regulatory Assets and Regulatory Liabilities, the DCL considers that reduced disclosures should be in place by the effective date of the forthcoming Standard.
Meeting(s) related to the project are as follows:
For further updates on UKEB projects, you can subscribe to our newsletters and alerts by emailing contact@endorsement-board.uk and putting SUBSCRIBE in the subject.