New standard IFRS 19

The International Accounting Standards Board (IASB) has published the new International Financial Reporting Standard (IFRS) 19 on Disclosures by Subsidiaries without Public Accountability. This new Standard aims to simplify and reduce the cost of financial reporting for subsidiaries while maintaining the usefulness of their financial statements.

Executive summary

The IASB has published the new IFRS 19 Standard on Disclosures by Subsidiaries without Public Accountability. This new standard aims to simplify and reduce the cost of financial reporting for subsidiaries while maintaining the usefulness of their financial statements.

The standard will be effective for reporting periods beginning on or after 1 January 2027. However, earlier application is possible.

Main content

• Scope of application. An eligible subsidiary may apply IFRS 19 in its consolidated, separate or individual financial statements. A subsidiary is eligible if: i) it has no public accountability; and if ii) its ultimate parent or any intermediate parent produces consolidated financial statements available for public use that comply with IFRS Accounting Standards.
• Application of the standard. A subsidiary shall apply IFRS 19 by replacing the disclosure requirements in other IFRS Accounting Standards with the IFRS 19 reduced disclosure requirements. IFRS 19 applies to disclosure requirements only and excludes recognition, measurement and presentation requirements and guidance on the application of disclosure requirements.
• Simplified disclosure requirements. Among other differences, IFRS 19 exempts eligible subsidiaries that provide customer financing as their principal activity from disclosing some of the credit risk information required by IFRS 7 on disclosures related to financial instruments.
• Principles for reducing disclosure requirements. The IASB has applied the same principles that it used to reduce disclosure requirements in the IFRS Accounting Standard for small and medium-sized enterprises (SMEs). These principles are: i) liquidity and solvency; ii) short-term cash flows, obligations, commitments and contingencies; iii) measurement uncertainty; iv) disclosure of amounts; and v) accounting policy choices.

Download the technical note about the New standard IFRS 19.