IASB proposes reduced disclosure requirements for subsidiaries without public accountability

In response to the feedback on the 2015 Agenda Consultation, the IASB undertook a project to provide reduced disclosure requirements for subsidiaries without public accountability. Now, the IASB has issued an Exposure Draft Subsidiaries without Public Accountability: Disclosures that proposes to permit eligible subsidiaries to apply reduced disclosure requirements with the recognition, measurement and presentation requirements in IFRS Standards.

Under the proposals, an entity would be eligible to apply the proposed standard if it meets the eligibility criteria at the end of the reporting period.

The proposed eligibility criteria are:

• The entity is a subsidiary (as defined in IFRS 10 Consolidated Financial Statements);
• The entity does not have public accountability; and
• The entity has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Standards.

In developing the proposed disclosure requirements, the IASB has considered the disclosure requirements in IFRS for SMEs Standard. If there are no recognition and measurement differences between IFRS Standards and the IFRS for SMEs Standard, the disclosure requirements from the associated IFRS for SMEs Standard are used, subject to minor tailoring for alignment of language and terms and updating cross references. If the recognition and measurement requirements of IFRS Standards are different from those of IFRS for SMEs Standard, the disclosure requirements in IFRS Standards are tailored by applying the principles used to develop the disclosure requirements in the associated IFRS for SMEs Standard.

The Exposure Draft may be accessed here. Comments on the Exposure Draft are requested by 31 January 2011.