EFRAG Issues Feedback Statement on the IASB ED Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures

​EFRAG has published its Feedback Statement on the IASB's Exposure Draft IASB/ED/2024/5 Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures (the 'ED'). (the 'ED'). The Feedback Statement summarises constituents’ feedback, including responses to EFRAG’s draft comment letter. It explains how the feedback received was considered by EFRAG in reaching the positions reflected in its final comment letter.

Based on feedback received, in its Final Comment Letter of 28 November 2024, EFRAG supported the IASB’s approach, which is aimed at updating IFRS 19 Subsidiaries without Public Accountability: Disclosures with all the new and amended disclosures proposed in the IFRS Accounting Standards issued between February 2021 and May 2024.

However, EFRAG observed that the application of the principles for reducing disclosure requirements is not always understandable. EFRAG suggested the IASB apply these principles transparently to the specific information needs of the users of eligible entities’ financial statements.

Furthermore, EFRAG recommended that the IASB engage further with users of financial statements of eligible subsidiaries (i.e. lenders) on the type of information they need by establishing a dedicated consultative group, which will include users of financial statements of subsidiaries without public accountability.

Lastly, EFRAG observed that for any other new IFRS Accounting Standard and new amendments, the disclosure reductions are rather low. Therefore, in cases where the IASB issues a new IFRS Accounting Standard (or an amendment) and the complete set of disclosure requirements of that Standard applies to subsidiaries without public accountability, EFRAG suggested establishing a review process for recent IFRS 19 amendments (like a three-year period after first time adoption).