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EFRAG Survey on Subsidiaries without public accountability - questions for subsidiaries


On 26 July 2021, the IASB published the Exposure Draft Subsidiaries without Public Accountability: Disclosures.
The objective is to develop a reduced-disclosure IFRS Standard that would apply on a voluntary basis to subsidiaries without public accountability while allowing entities to apply measurement and recognition principles from full IFRS Standards.

More specifically, an entity would be permitted to apply the reduced-disclosure IFRS Standard in its consolidated, separate or individual financial statements if, at the end of its reporting period, it: 
  • is a subsidiary; 
  • does not have public accountability (i.e., its debt or equity instruments are not traded in a public market or it is not in the process of issuing such instruments for trading in a public market; and it does not hold assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses); and 
  • has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Standards.
The reduced-disclosure IFRS Standard would be part of full IFRS Standards and subject to endorsement in the European Union.

In the ED, the IASB proposes reduced disclosure requirements for those in the scope of the project. However, some disclosure requirements in other IFRS Standards would remain applicable when a subsidiary applies the draft Standard. More specifically, the disclosure requirements that are not listed in Appendix A of the ED would remain applicable (Appendix A of the draft Standard lists the disclosure requirements in IFRS Standards that are replaced when a subsidiary applies the draft Standard for reduced disclosure requirements). To ease application, the IASB decided to include those requirements from other IFRS Standards that remain applicable in a footnote to the subheading of the IFRS Standard to which they relate.

That means that all disclosure requirements are listed either in the main body of the ED or in a footnote. Further, the disclosure requirements in the following IFRS Standards remain applicable: IFRS 8 Operating Segments, IFRS 17 Insurance Contracts, and IAS 33 Earnings per Share.

Additional background information can be found in the snapshot of the ED.
The survey refers to ‘full IFRS Standards’, which means IFRS as adopted by the European Union.

The survey has 12 questions and completion of the survey should take approximately 30 minutes.

The survey starts with two questions about the accounting requirements applied in your jurisdiction (Q1-Q2). Subsequently, the survey focuses on the expected costs and benefits from the application of the IASB’s draft Standard (Q3-6) and on the content of the exposure draft (Q7-11). Finally, the last question (Q12) focuses on the respondent’s overall assessment of whether it would apply a reduced disclosure IFRS Standard if published by the IASB. Multiple choice is available for questions 3 to 7.

If you have any questions or suggestions, please contact Filipe Alves and/or Wolfgang Kasparet.

In the following section we are asking you to give your general information.
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Does your parent entity prepare consolidated financial statements under IFRS Standards? *This question is required.
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