EFRAG seeks comments on its Draft Endorsement Advice on the reduced disclosure standard for eligible subsidiaries
EFRAG has issued its draft endorsement advice letter and a separate invitation to comment regarding the endorsement for use in the EU of IFRS 19 Subsidiaries without Public Accountability: Disclosures, issued by the IASB on 9 May 2024.
IFRS 19 aims to simplify financial reporting for eligible subsidiaries by allowing them to prepare financial statements under IFRS Accounting Standards with the reduced disclosure requirements under specific conditions. This approach reduces the reporting burden on companies by simplifying the reporting, reducing the costs of preparing eligible subsidiaries’ financial statements, while maintaining their usefulness to users.
EFRAG assessed the European endorsement criteria. In line with the European Commission’s endorsement advice request, EFRAG has also assessed the interaction of the reduced disclosure requirements in IFRS 19 with the requirements of 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 IFRS 19 in the EU.
EFRAG's overall preliminary assessment is that IFRS 19 satisfies the criteria for endorsement for use in the EU and therefore recommends its endorsement.
Submit Your Comment
EFRAG is seeking comments on all aspects of its analysis supporting the preliminary conclusions.View EFRAG draft endorsement advice letter
You are asked to provide your comments on the draft endorsement advice letter by downloading the invitation to comment below, filling in the comments and submitting the response.
Comments are requested by 3 September 2025 COB.
EFRAG has also updated its Endorsement Status Report.