Skip to content (Press enter)
Show Sections

Current stage

In July 2021, the International Accounting Standards Board (IASB) published the Exposure Draft Subsidiaries without Public Accountability: Disclosures. The Exposure Draft sets out the IASB's proposals for a new IFRS Accounting Standard that would permit eligible subsidiaries to apply IFRS Accounting Standards with reduced disclosure requirements in their financial statements.

The deadline for submitting comments on the Exposure Draft is 31 January 2022. The IASB will consider feedback on the Exposure Draft in developing the IFRS Accounting Standard.

IASB® Update January 2023

The IASB met on 24 January 2023 to continue redeliberating the proposals in its Exposure Draft Subsidiaries without Public Accountability: Disclosures to develop a new IFRS Accounting Standard (new Standard).

Transition matters—Interaction between IFRS 1 and the Standard (Agenda Paper 31A)

The IASB tentatively decided to proceed with its proposals to include in the new Standard:

  1. reduced disclosure requirements for IFRS 1 First-time Adoption of International Financial Reporting Standards; and 
  2. an explanation of the relationship between IFRS 1 and the new Standard, as set out in paragraphs 12–14 of the Exposure Draft.

All 12 IASB members agreed with this decision. 

Transition matters—Changes in accounting policies (Agenda Paper 31B)

The IASB tentatively decided to clarify in the new Standard that an eligible subsidiary that (i) elects to apply the new Standard, (ii) revokes an election to apply the new Standard or (iii) is no longer eligible to apply the new Standard:

  1. does not apply the requirements in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors on changes in accounting policies; and
  2. is not required to present a third statement of financial position (that is, a second comparative statement of financial position) as at the beginning of the earliest period presented.

All 12 IASB members agreed with this decision. 

Maintenance of the Standard (Agenda Paper 31C)

The IASB confirmed its proposal to consider amendments to the new Standard at the same time it publishes an exposure draft for a new or amended Accounting Standard.  

All 12 IASB members agreed with this decision. 

Next milestone

IFRS Accounting Standard