Under SEC rules, registrants must file certain financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Foreign private issuers, however, are permitted to file financial statements prepared by International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) or by their home country GAAP with reconciliation to U.S. GAAP.

In May 2024, the IASB issued IFRS 19, which permits certain subsidiaries of reporting entities to provide reduced disclosures when applying recognition, measurement and presentation requirements in IFRS Accounting Standards. IFRS 19 also specifies that eligible subsidiaries that elect to use the standard must provide additional material disclosures when it determines that information is necessary to enable financial statement users to understand the impact of transactions, events and conditions on the subsidiary’s financial position and financial performance.

Even though the entity may be eligible to apply IFRS 19 in order to benefit from reduced disclosures, it should carefully consider whether it is nevertheless required to include additional material disclosures from other IFRS Accounting Standards to achieve the objectives of financial reporting given the use of those financial statements in a filing with the SEC.

Access the statement on the SEC’s website.