The IASB is expected to issue the Exposure Draft ‘Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures’ in July 2024 (the catch-up ED).
The ED will be open for consultation for 120 days.
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 or exposed 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 catch-up ED is expected to propose 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 catch-up ED will have the same effective date as IFRS 19.
The catch-up ED is expected to propose amendments to IFRS 19 in relation to:
The catch-up ED is expected to consult 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 catch-up ED is expected to consult of 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.
Outreach activity on this project to date has included consulting with our UKEB Advisory Groups on the expected proposals in the forthcoming catch-up ED. Planned UKEB outreach includes future discussions with stakeholders and public consultation on the UKEB’s DCL.
If you would like to contribute to outreach work on this project, please email ukendorsementboard@endorsement-board.uk.
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.