Indian Accounting Standards (Ind AS) are based on the IFRS Accounting Standards issued by the International Accounting Standards Board (IASB). In this regard, it may be noted that IFRS Accounting Standards are being issued/revised by the IASB from time to time. As a part of convergence with IFRS Accounting Standards, the Ind AS may be issued/revised corresponding to the IFRS Accounting Standards.

In 2024, the IASB issued a new IFRS viz. IFRS 19, Subsidiaries without Public Accountability: Disclosures. IFRS 19 specifies reduced disclosure requirements that an eligible subsidiary is permitted to apply instead of the disclosure requirements in other IFRS Accounting Standards. A subsidiary is eligible if it does not have public accountability; and its ultimate or any intermediate parent produces consolidated financial statements available for public use that comply with IFRS Accounting Standards.

Globally, IFRS 19 is effective for annual reporting periods beginning on or after January 1, 2027. In line with IFRS 19, Ind AS 119, Subsidiaries without Public Accountability: Disclosures, has been formulated. The proposed effective date of the standard is for annual reporting periods beginning on or after April 1, 2027.

The Accounting Standards Board (ASB) considered the draft of Ind AS 119 and decided to issue Exposure Draft of the said standard. Accordingly, the Exposure Draft has been issued for public comments.

How to comment:

Further clarifications on the Exposure Draft may be sought by e-mail to asb@icai.in.