IASB ISSUES IFRS 19 SUBSIDIARIES WITHOUT PUBLIC ACCOUNTABILITY: DISCLOSURES


When a parent company prepares consolidated financial statements that comply with IFRS® Accounting Standards, its subsidiaries are required to report to the parent using IFRS Accounting Standards. For their own financial statements, subsidiaries are permitted to use IFRS for SMEs® Accounting Standard* if they meet the eligibility criteria or another national financial reporting standard. However, such subsidiaries may not opt to apply the IFRS for SMEs Accounting Standard as they are already required to report to their parent entities using IFRS Accounting Standards and the IFRS for SMEs Accounting Standard differs significantly from ‘full’ IFRS Accounting Standards, which may result in the subsidiary being required to maintain two sets of financial records. When subsidiaries apply IFRS Accounting Standards for their own financial statements, they are required to provide the disclosures required by IFRS Accounting Standards, which may be disproportionate to the information needs of their users.
* IFRS for SMEs® Accounting Standard has not been adopted by the Thai Federation of Accounting Professions.
Consequently, on 9 May 2024, the International Accounting Standards Board (IASB) issued IFRS 19 Subsidiaries without Public Accountability: Disclosures (the Standard).