Disclosure Initiative—Subsidiaries without Public Accountability: Disclosures

The IASB met on 23 May 2023 to continue redeliberating the proposals in the Exposure Draft Subsidiaries without Public Accountability: Disclosures.

Feedback on proposed disclosure requirements (Agenda Paper 31A)

The IASB tentatively decided to revise the proposed disclosure requirements in the Exposure Draft under the subheadings:

1. IFRS 3 Business Combinations—by adding subparagraph B64(j)(i) of IFRS 3;
2. IFRS 7 Financial Instruments: Disclosures—by restricting the application of paragraphs 62, 66 and 67 of the Exposure Draft to eligible subsidiaries that provide financing to customers as a main business activity;
3. IFRS 12 Disclosure of Interests in Other Entities—by:
   1. adding paragraphs 14, 15, 19D(b), 19E, 19F, 30 and 31 of IFRS 12; and
   2. amending paragraph 68 of the Exposure Draft to add ‘joint operations’ from paragraph B4 of IFRS 12;
4. IFRS 15 Revenue from Contracts with Customers—by:
   1. withdrawing paragraph 93 of the Exposure Draft; and
   2. adding paragraph 119(a) of IFRS 15;
5. IFRS 16 Leases—by:
   1. withdrawing paragraphs 100(d) and 105 of the Exposure Draft; and
   2. adding subparagraphs (e), (g) and (i) of paragraph 53 of IFRS 16;
      
6. IAS 1 Presentation of Financial Statements—by:
   1. adding paragraph 137 of IAS 1; and
   2. withdrawing paragraphs 120–122 of the Exposure Draft and retaining paragraphs 112–114 of IAS 1 as applicable;
7. IAS 19 Employee Benefits—by:
   1. adding paragraph 141(b) of IAS 19, in particular the requirement to disclose separately the effects of interest income;
   2. replacing paragraph 152(c)(iii) of the Exposure Draft with paragraph 141(c)(i) of IAS 19; and
   3. adding paragraph 147(b) of IAS 19; and
8. IAS 27 Separate Financial Statements—by amending paragraphs 177–180 of the Exposure Draft to reference the applicable IFRS 12 disclosure requirements.

All 14 IASB members agreed with these decisions.

Paragraph 16 of the draft Standard (Agenda Paper 31B)

The IASB tentatively decided:

1. to retain paragraph 16 of the Exposure Draft and not add guidance; and
2. an overall disclosure objective for the Standard was not necessary.

All 14 IASB members agreed with these decisions.

Disclosure requirements about transition in other IFRS Accounting Standards (Agenda Paper 31C)

The IASB tentatively decided to proceed with its proposal in the Exposure Draft that disclosure requirements about the transition to a new or amended IFRS Accounting Standard set out in that new or amended Standard apply to eligible subsidiaries.

All 14 IASB members agreed with this decision.

New disclosure requirements in IFRS Accounting Standards (Agenda Paper 31D)

The IASB tentatively decided that until the IASB issues an amendment to the prospective Standard, eligible subsidiaries would be required to comply with disclosure requirements in amendments to IFRS Accounting Standards that have been issued after the publication of the Exposure Draft.

All 14 IASB members agreed with this decision.