IASB seeks views on standard for ‘subsidiaries without public accountability’

The board said subsidiaries that are nonlisted or not financial institutions would save time and money from reduced disclosure requirements.

The International Accounting Standards Board (IASB) set out for consultation Monday a new standard that would allow eligible subsidiaries to apply IFRS with a reduced set of disclosure requirements.

The IASB published an overview of its proposal.

The standard would allow subsidiaries to save time and money, the IASB said, by:

  • Eliminating the need to maintain an additional set of accounting records for reporting purposes — if the subsidiary currently does not apply IFRS in its own financial statements; and
  • Reducing the disclosures required to comply with IFRS.

Sue Lloyd, IASB vice-chair, said: "Our proposed standard aims to provide a solution that will simplify reporting and be cost-effective for subsidiaries while meeting the information needs of the users of their financial statements."

The board said the proposed standard would be available to "subsidiaries without public accountability" — companies that are not financial institutions or listed on a stock exchange — whose parent company prepares consolidated financial statements applying IFRS.

Comments on the exposure draft are due 31 January 2022 and can be made online or sent by email to

Oliver Rowe ( is an FM magazine senior editor.