What Is TFRS 19?

TFRS 19, in full "Subsidiaries without Public Accountability: Disclosures", is the standard on disclosures for subsidiaries without public accountability.

🎯 Objective and scope

TFRS 19 aims only to reduce note disclosures, without changing the recognition, measurement and presentation requirements of other TFRSs. Accordingly, companies that:

• have no public accountability,
• are subsidiaries of another entity (an ultimate or intermediate parent),
• and belong to a group that prepares TFRS-compliant consolidated financial statements,

may apply TFRS 19 on an optional basis.

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✅ Conditions for application

TFRS 19 may be elected when all of the following conditions are met:

1. The company must be a subsidiary,
2. It must have no public accountability (it does not issue securities and does not serve a broad group of outsiders),
3. Its ultimate parent or an intermediate parent must prepare TFRS-compliant consolidated financial statements available for public use.

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📉 What changes?

• Recognition, measurement and classification continue unchanged.
• However, note disclosures may be prepared using the reduced (simplified) version in TFRS 19.
• In other words, consistency with the group is maintained while the reporting burden is significantly reduced.

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💡 Why was it introduced?

• Subsidiaries applying TFRS had to prepare full note disclosures in their own financial statements, even though they already prepared the information needed for group reporting.
• With TFRS 19, these disclosures can be simplified in line with the needs of the group to which the company belongs.

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🕒 Effective date and early application

• Mandatory application: from 1 January 2027,
• Early application is also permitted.

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🛠️ Assessment of benefits

Advantages	Points to consider
The disclosure burden is reduced and reporting is faster	Even among companies that meet the criteria, user needs may change over time
Accounting is aligned within the group, reducing the need for dual records	Regulators or lenders may request additional disclosures
Preparation for the independent audit becomes easier	User and regulatory needs should be assessed carefully before making the election

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🔄 Transition and application

• Application is entirely optional.
• A company applying TFRS 19 may later revoke this election and return to full disclosures.
• However, whether the criteria continue to be met should be reviewed regularly.

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📘 In brief:

TFRS 19 allows subsidiaries without public accountability to report using simplified note disclosures while retaining the accounting principles of the group to which they belong. Measurement and classification rules are the same; the workload is lighter.