The Exposure Draft sets out proposal of the International Accounting Standards Board (IASB) for a new IFRS Standard Subsidiaries without Public Accountability: Disclosures (draft Standard).
The draft Standard respond to feedback from stakeholders and are designed to ease financial reporting for eligible subsidiaries while meeting the needs of the users of their financial statements. The draft Standard would permit a subsidiary to apply reduced disclosure requirements when applying IFRS Standards in its financial statements provided that:
(a) the subsidiary does not have public accountability; and
(b) its ultimate or any intermediate parent produces consolidated financial statements available for public use that comply with IFRS Standards
The Exposure Draft proposes a new IFRS Standard that would:
(a) be optional for a subsidiary that is eligible to apply it;
(b) set out disclosure requirements for a subsidiary that elects to apply the Standard; and
(c) specify the disclosure requirements in other IFRS Standards that do not apply and are replaced if a subsidiary elects to apply the draft Standard.
An eligible subsidiary that elects to apply the draft Standard would apply IFRS Standards except for the disclosure requirements listed in Appendix A of the draft Standard—instead the subsidiary would apply the disclosure requirements of the draft Standard.
The Exposure Draft was developed considering all IFRS Standards issued by IASB as at 28 February 2021 and exposure drafts published as at 1 January 2021, except for the Exposure Draft General Presentation and Disclosures.
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Invitation to comment
The Exposure Draft is open for comment until 10 December 2021.
You may provide your comments via email to us at firstname.lastname@example.org.
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