What IFRS 19 does
IFRS 19 Subsidiaries without Public Accountability: Disclosures was issued by the IASB in May 2024 and applies to annual reporting periods beginning on or after 1 January 2027, with earlier application permitted. It is a voluntary disclosure-only standard: eligible subsidiaries apply the recognition, measurement and presentation requirements of IFRS Accounting Standards but follow reduced disclosure requirements.
Who is eligible?
- The entity is a subsidiary
- It does not have public accountability (for example, its debt or equity is not publicly traded and it does not hold assets in a fiduciary capacity for a broad group of outsiders, as banks do)
- Its ultimate or an intermediate parent produces consolidated financial statements available for public use that comply with IFRS Accounting Standards
Why it matters for groups
Many subsidiaries keep a second set of records under local GAAP to avoid full IFRS disclosures. IFRS 19 makes it practical to report once, on the same basis as the group, cutting reconciliation work during consolidation.
Keeping up to date
The IASB updates IFRS 19 as new standards and amendments are issued, so the reduced disclosure list changes over time. Check the current version when preparing each year-end.
What to do now
- Confirm which subsidiaries meet the eligibility criteria
- Check local law and regulators accept IFRS 19 financial statements
- Align subsidiary charts of accounts with group reporting to make a single set of books possible
This article is general information, not accounting, tax or legal advice. Rates, thresholds and effective dates should be confirmed with the official sources (IFRS Foundation, tax authorities, regulators) or your adviser before acting.