Another one! IASB releases a new standard, IFRS 19

Home » IFRS » Another one! IASB releases a new standard, IFRS 19

Another one! IASB releases a new standard, IFRS 19

May 9, 2024 | IFRS

Hot on the heels of IFRS 18 Presentation and Disclosure in Financial Statements, the IASB has released the next standard in the IFRS series. IFRS 19 Subsidiaries without Public Accountability: Disclosures was officially published on 9 May 2024 and is set to be a game changer for certain entities as the standard-setting body continues to pursue the objective of limiting financial statements to what is relevant for primary users of financial statements.

The standard is an optional standard for a subsidiary to apply in its consolidated, separate or individual financial statements if it does not have public accountability and has an ultimate parent that consolidates in accordance with IFRS. An entity does not have public accountability if it does not have debt or equity traded in a public market or hold assets in a fiduciary capacity. Sound familiar?

The public accountability definition may be familiar to you because it applies to entities eligible to apply IFRS For SME’s. This standard may have been unattractive for entities to apply for a variety of reasons. Whereas IFRS For SME’s has reduced disclosures, the standard has certain requirements such as the amortisation of goodwill which preparers of financial statements may find unattractive.

Extent of reduction

This is the problem that IFRS 19 will look to solve; allow entities to apply the requirements of full IFRS while reducing the amount of disclosure that they would have in their financial statements. If an entity elects to apply IFRS 19, it is permitted to revoke that election in subsequent financial periods.

A good illustration of the reduction in disclosures relates to the requirements for financial instruments under IFRS 7 which make up a whopping 29 pages covering qualitative and quantitative disclosures for financial assets and liabilities as well as hedging. Under IFRS 19, these disclosures are now only 9 pages meaning that the requirements have been reduced by approximately 70%.

The standard is applicable for financial statements beginning on or after 1 January 2027 with earlier application permitted meaning that the standard can be applied in your current financial statements. Entities also have the option of applying the standard to the current period but not the immediately preceding period.

Written by KC Rottok Chesaina, Chief IFRS Officer at Financial Minds. For IFRS training and consulting, email us on ask@fineminds.co.za 

You May Also Like
Financial Minds: LinkedIn
Latest
What I have learnt about investing in happiness outside my career

What I have learnt about investing in happiness outside my career

Having recently moved countries, left behind family and friends, changed jobs, and basically experienced what Gen Z would call a ‘lifequake,’ I understand change, a growth mindset, and doing hard things. This journey has got me thinking about what investing in yourself means.

Why returning to EOH was CFO Ashona Kooblall’s best ever decision

Why returning to EOH was CFO Ashona Kooblall’s best ever decision

Ashona’s return was a surprising turn of events that was welcomed by the leadership and finance teams of EOH. Her resumption was met with great excitement from all stakeholders, including customers with whom she had built strong relationships. She believes this is the best decision she has ever made as she loves what she does and feels suited for the role.

CFO Peter Kimingi chooses impact over glamour

CFO Peter Kimingi chooses impact over glamour

‘Prior to joining the non-profit sector, one should ask oneself what makes one tick. If one is happy chasing a high-profit corporate job, this is not the right sector. This is a space for people looking to have an impact at a fundamental level and to create real change in people’s lives. It’s a shame that people often see this area as one for second-class citizens yet it is a critical cog that fills the void left by government and the private sector neglecting certain societal needs. It may not be glamorous, but if impact and meaningful work are what you’re looking for, then this is the sector for you,’ Peter says.

Raakesh Khandoo elected CEO of Crowe Johannesburg

Raakesh Khandoo elected CEO of Crowe Johannesburg

The partners of Crowe Johannesburg have announced that Raakesh Khandoo has been unanimously chosen to take on the role of CEO. Since joining the firm in 2004, Raakesh has demonstrated unwavering commitment, completing his articles of clerkship, earning his chartered accountant qualification, and becoming a partner in 2008. He will assume the role of CEO, on the1st March 2025.

A life of purpose: Biography of Lumkile Wiseman Nkuhlu by Luvuyo Wotshela

A life of purpose: Biography of Lumkile Wiseman Nkuhlu by Luvuyo Wotshela

Lumkile Wiseman Nkuhlu is a remarkable man. He was the first black South African to qualify as a Chartered Accountant. He is a Professor of Accounting and a recipient of prestigious honorary degrees from leading universities in South Africa. He has also received numerous awards for his unparalleled track record in leadership.

CEO Eric Smuts has a can-do attitude

CEO Eric Smuts has a can-do attitude

Former Nampak CEO Erik Smuts is always up for a challenge – whether in life or in business. He is the kind of person who is intrigued by the unknown, instead of shying away from it.

CFO Scholtz Fourie’s success formula – work hard, play hard

CFO Scholtz Fourie’s success formula – work hard, play hard

“Joining Tourvest was one of the best things that has ever happened to me. I realised I knew very little of the service industry, and I acknowledged on my first day that I was a student. As CFO, my approach has always been to ensure that the finance team is better this month than it was the previous month while still enjoying ourselves,”

CFO Aneshree Naidoo makes numbers and moments count

CFO Aneshree Naidoo makes numbers and moments count

As a would-be chemical engineer, Aneshree Naidoo is obsessed with understanding how things work across all dimensions. Consequently, in every role she has held, she asks plenty of questions to understand why things are the way they are and analyses impact of options and decisions in detail. This approach has its dangers; at a previous employer, she kept questioning suspicious activities and behaviours, which led to death threats—an experience she counts as one of the lows of her career.