IASB Proposes Amendments to IFRS 19

On 30 July 2024, the IASB has published the Exposure Draft IASB ED/2024/5: Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures.

The Exposure Draft proposes amendments to IFRS 19 in relation to a number of recent IASB publications. With the proposed amendments, the IASB proposes simplifications for subsidiaries with regard to the disclosure requirements of the following pronouncements:

• Lack of Exchangeability (Amendments to IAS 21)
• Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)
• Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
• Non-current Liabilities with Covenants (Amendments to IAS 1)
• International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12)
• IFRS 18 Presentation and Disclosure in Financial Statements
• Rate regulated Activities

The Exposure Draft is open for comment until 27 November 2024.

The Exposure Draft is available on the IASB website along with other accompanying material (further information).

Background:

On 9 May 2024, the IASB published IFRS 19 Subsidiaries without Public Accountability – Disclosures. This new IFRS Standard permits companies without public accountability (i.e. companies that are not financial institutions or listed on a stock exchange) to apply IFRS Standards with a reduced set of disclosure requirements. IFRS 19 is available (subject to endorsement within the EU) to companies that are included as subsidiaries in consolidated financial statements applying IFRS Standards.

When the IASB developed IFRS 19, it considered issued IFRS Accounting Standards as at 28 February 2021. When IFRS 19 was issued, it did not contain reduced versions of any disclosure requirements that were added or amended after that date. In its Exposure Draft, the IASB is now discussing simplifications for subsidiaries with regard to the amendments to IFRS disclosure requirements that have been published by the IASB since 28 February 2021.