EFRAG Briefs on IFRS 19 in the EU

EFRAG Briefs on IFRS 19 in the EU

By Prathamesh 24 June, 2024
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The International Accounting Standards Board (IASB) issued IFRS 19 Subsidiaries without Public Accountability: Disclosures. The European Financial Reporting Advisory Group (EFRAG) Secretariat has now followed in the footsteps of the SEC and released two updated briefings to provide clarity on the application of IFRS 19 within the EU.

The new IFRS 19 standard, effective from 1 January 2027 with early application permitted, offers reduced disclosure requirements for eligible subsidiaries on a voluntary basis. To aid understanding and potential endorsement of IFRS 19 in the EU, the EFRAG Secretariat’s briefings focus on the scope and compatibility of IFRS 19 with EU laws and regulations. The first briefing explores who can apply IFRS 19 in the EU, while the second examines the differences in disclosure requirements between IFRS 19 and the EU Accounting Directive 2013/34/EU.

The updated briefing on the scope of IFRS 19 discusses how EU regulations impact the application of the standard. The compatibility study provides a comparative analysis of the disclosure requirements between IFRS 19 and the EU Accounting Directive, noting key updates since the February 2022 briefing.

These updates are crucial as they address the regulatory landscape and the specificities of EU Member States’ accounting practices. IFRS 19 could offer substantial benefits by simplifying reporting requirements and reducing costs for eligible subsidiaries, provided it is endorsed and integrated effectively into the EU framework.

To find out more details please visit : https://www.xbrl.org/