Key points

On 9 May 2024, the IASB issued another new standard: IFRS 19, ‘Subsidiaries without Public Accountability: Disclosures’. The new standard reduces disclosure requirements for eligible subsidiary financial statements. This In brief highlights some key elements.
What’s the issue?
The standard was developed, in response to feedback from stakeholders, to allow subsidiaries with a parent that applies IFRS® Accounting Standards in its consolidated financial statements to apply IFRS Accounting Standards with reduced disclosure requirements.
IFRS 19 is a voluntary IFRS Accounting Standard that eligible subsidiaries can apply when preparing their own consolidated, separate or individual financial statements.
These subsidiaries will continue to apply the recognition, measurement and presentation requirements in other IFRS Accounting Standards, but they can replace the disclosure requirements in those standards with reduced disclosure requirements.
PwC observations
For groups that currently apply IFRS Accounting Standards at both the consolidated and the subsidiary reporting level, IFRS 19 will likely bring both operational relief and cost savings when reporting at the subsidiary level. This is because subsidiaries can now keep only one set of accounting records to meet the needs of both their parent company and the users of their financial statements.
Who can benefit?
IFRS 19 applies to eligible subsidiaries that elect to adopt the standard in their consolidated, separate or individual financial statements. Eligible subsidiaries are those that are not publicly accountable and whose ultimate or intermediate parent prepares consolidated financial statements available for public use that comply with IFRS Accounting Standards.
An entity has public accountability if its equity or debt instruments are traded in a public market, if it is in the process of issuing such instruments for trading in a public market, or if it holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses.
When does it apply?
Eligible entities may elect to apply the new standard for reporting periods beginning on or after 1 January 2027. Unless permitted or exempted, comparative information needs to be prepared under IFRS 19. Early application is also permitted; specific requirements apply if IFRS 19 is applied earlier than IFRS 18 Presentation and Disclosure in Financial Statements.
Depending on the territory, there might be a local endorsement mechanism before the standard can be applied.
Where do I get more details?
Watch this space for more detailed guidance on the new standard. In the meantime, for more information about IFRS 19, contact your local PwC contact or Netta Mikkilä (FI).
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