EFRAG Issues Endorsement Advice on the Reduced Disclosure Standard

EFRAG has published its final endorsement advice on IFRS 19 Subsidiaries without Public Accountability: Disclosures, concluding that the standard meets all technical endorsement criteria and is conducive to the European public good. EFRAG, therefore, recommends its endorsement in the EU.

In reaching this conclusion, EFRAG also assessed how IFRS 19’s reduced disclosure requirements interact with the Directive 2013/34/EU and whether a corresponding carve-out could be made to IFRS 19. Finally, EFRAG conducted an in-depth cost-benefit assessment of the effects of IFRS 19 through extensive outreach activities and through desktop research to estimate the number of entities potentially impacted by the implementation of the standard in the EU.

ABOUT IFRS 19

Issued by the IASB on 9 May 2024, IFRS 19 Subsidiaries without Public Accountability: Disclosures aims to simplify financial reporting for eligible subsidiaries by allowing them to prepare IFRS-compliant financial statements with the reduced disclosures. The standard reduces reporting burden and costs for eligible subsidiaries while maintaining the usefulness of financial information to users.

View EFRAG Final Endorsement Advice Letter

View EFRAG Endorsement Status Report