A normative analysis of the disclosure requirements in IFRS 19 and their role in reducing the accounting burden on non-publicly accountable subsidiaries: An analytical descriptive study

Abstract

This study aims to provide a critical and comprehensive analysis of the new International Financial Reporting Standard No. 19 (IFRS 19), Subsidiaries without Public Accountability: Disclosures, issued by the International Accounting Standards Board (IASB) in May 2024. The research problem lies in balancing the need for transparent, high-quality financial information with the operational and financial burdens imposed by complete disclosure requirements on subsidiaries without public accountability. The article examines the theoretical concept of proportionality in accounting standards and compares the reduced disclosure requirements introduced by IFRS 19 with the more detailed obligations contained in other international standards. An analytical methodology is employed to assess the expected effects of implementing the standard on the efficiency and comparability of financial reporting. Preliminary findings indicate that IFRS 19 offers a practical solution that alleviates administrative burden without compromising the quality of essential information for users, thereby enhancing alignment with the broader IFRS framework.