Effective date and transition (Agenda Paper 32A)

When the IASB developed IFRS 19, it considered issued IFRS standards as at 28 February 2021. When IFRS 19 is issued, it will not contain reduced versions of any disclosure requirements added or amended after that date. New and amended disclosure requirements introduced after 28 February 2021 will be addressed through a catch-up exposure draft (catch-up ED), applying the principles for reducing disclosures. IFRS 19 will be effective from 1 January 2027, with early application permitted. Proposed amendments to IFRS 19, which will be included in the catch-up ED, could have the same effective date as IFRS 19 (1 January 2027). The IASB may allow eligible subsidiaries to early apply the proposed amendments to IFRS 19 when they are finalised, providing simplified financial statement preparation. Until the proposed amendments to IFRS 19 are finalised, new and amended disclosure requirements would apply in full without reductions.

Staff recommendation

The staff recommended that:

• the proposed amendments to IFRS 19 have the same effective date as IFRS 19 (that is, 1 January 2027); and
• early adoption of the proposed amendments to IFRS 19 is permitted

IASB discussion

One IASB member sought clarification regarding whether an entity that chooses to early adopt IFRS 19 would be required to adopt the requirements proposed in the catch-up ED once they are finalised. The staff clarified that when an entity chooses to early adopt IFRS 19, they would still need to provide full IFRS disclosures for the topics included in the catch-up ED. However, once the requirements are finalised, early adopters will be required to apply them. Some IASB members pointed out that it should be clear that an entity cannot early adopt the amendments to IFRS 19 without early adopting IFRS 19.

IASB decision

All IASB members voted in favour of the staff recommendation.

Due process (Agenda Paper 32B)

Questions for the IASB

• Comment period—does the IASB agree with the staff recommendation to allow a comment period of 120 days for the catch-up ED?
• Dissent—does any IASB member intend to dissent from the publication of the catch-up ED?
• Permission to begin the balloting process—Is the IASB satisfied that it has complied with the applicable due process steps and that it should begin the balloting process for the catch-up ED?

IASB decision

All IASB members agreed with the staff recommendation.