{"id":7412,"date":"2024-05-30T13:41:53","date_gmt":"2024-05-30T17:41:53","guid":{"rendered":"https:\/\/seci.wpenginepowered.com\/?p=7412"},"modified":"2024-05-30T13:41:57","modified_gmt":"2024-05-30T17:41:57","slug":"the-application-of-ifrs-19-subsidiaries-without-public-accountability-in-sec-filings","status":"publish","type":"post","link":"https:\/\/seciblog.pli.edu\/index.php\/the-application-of-ifrs-19-subsidiaries-without-public-accountability-in-sec-filings\/","title":{"rendered":"The Application of IFRS 19, Subsidiaries without Public Accountability in SEC Filings"},"content":{"rendered":"

Cheryl Linthicum, Associate Director at SEC Institute wrote this post. \u00a0You may want to check out the foreign private issuer workshops she and Gary Brown will be leading this year at\u00a0https:\/\/www.pli.edu\/programs\/seci<\/a><\/p>\n

IFRS 19, adopted in May 2024, permits financial statements of certain subsidiaries of reporting companies to provide reduced disclosures when applying recognition, measurement, and presentation requirements of IFRS.\u00a0 On May 17, 2024, SEC Chief Accountant Paul Munter and Corporation Finance Division Director Erik Gerding issued a Statement<\/a> for foreign private issuers (FPIs) to consider making additional disclosures when including financial statements that apply IFRS 19.<\/p>\n

Foreign private issuers are permitted to file financial statements in accordance with either U.S. GAAP or IFRS as issued by the IASB.\u00a0 A reporting FPI would not be allowed to apply IFRS 19.\u00a0 However, it is possible in some situations, such as an acquisition of a subsidiary of another company where the subsidiary applies IFRS 19, that financial statements subject to the reduced disclosure requirements of IFRS 19 could be included in an SEC filing.<\/p>\n

The SEC\u2019s statement reminds foreign private issuers that in such a situation:<\/p>\n