UKEB Final Comment Letter submitted to the IASB—Subsidiaries without Public Accountability: Disclosures

The UK Endorsement Board (UKEB) has submitted its Final Comment Letter (FCL) to the IASB on the Exposure Draft. The UKEB supports IASB’s efforts to develop an IFRS that would permit subsidiaries without public accountability to apply full IFRS standards with reduced disclosure. However, the UKEB recommends an extension of the scope to an ultimate parent of a group, that does not itself have public accountability. UKEB also proposes further enhancements including:

• developing the proposed disclosure requirements by implementing a ‘top-down approach’ starting with the full IFRS disclosure requirements and considering exemptions;
• further streamlining some of the disclosures proposed by the ED. Two main areas include the disclosure requirements of IFRS 7 Financial Instruments: Disclosures and IFRS 13 Fair Value Measurement; and
• IFRS 17 disclosure requirements—expressed reservations about supporting the ED proposals for subsidiaries that are not publicly accountable to provide full IFRS 17 disclosure requirements.

Click here for more details on the UKEB project and the related FCL.