Audit

IASB proposes IFRS Standard for non-public subsidiaries

The proposals have come in response to stakeholder feedback, and are intended to ease financial reporting for eligible subsidiaries

The International Accounting Standards Board (IASB) has proposed a new IFRS Standard to enable eligible subsidiaries to apply the standards with a reduced set of disclosure requirements.

The proposals have come in response to stakeholder feedback, and are intended to ease financial reporting for eligible subsidiaries.

Eligible subsidiaries consist of entities without public accountability whose parent company prepares consolidated financial statements with the IFRS Standards.

Through the proposals, the subsidiaries would save both “time and money” by eliminating the need to keep an additional set of accounting records for reporting purposes.

The subsidiaries would also see a reducing number of disclosure required to comply with IFRS Standards.

The IASB claimed that it has tailored its disclosure requirements in the proposed standard to “meet the needs of financial statement users of subsidiaries without public accountability”.

Sue Lloyd, vice-chair at the IASB, added: “Our proposed standard aims to provide a solution that will simplify reporting and be cost-effective for subsidiaries while meeting the information needs of the users of their financial statements.”

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