The Accounting Standards Committee (ASC) has released Amendments to SFRS(I) 19 Subsidiaries without Public Accountability: Disclosures and Amendments to FRS 119 Subsidiaries and Small Entities without Public Accountability: Disclosures.
These amendments are effective for annual reporting periods beginning on or after 1 January 2027.
Overview of the Amendments
The updated standards refine the disclosure framework for:
- Subsidiaries applying SFRS(I) 19 under the SFRS(I) reporting framework; and
- Subsidiaries and small entities applying FRS 119 under the FRS framework.
The amendments aim to:
- Further align reduced-disclosure standards with the latest global IFRS for SMEs and reduced-disclosure frameworks.
- Balance transparency with reporting efficiency for entities without public accountability.
- Streamline disclosure requirements while retaining decision-useful information for users of financial statements.
Key Impacts on Preparers
1. Enhanced Alignment With Full Standards
Although the disclosure burden remains significantly reduced, preparers should expect:
- Updated disclosure lists reflecting changes in underlying SFRS(I)/FRS standards.
- Additional clarifications on measurement and presentation requirements where necessary.
2. Potential System and Process Adjustments
Entities may need to:
- Update internal reporting templates, disclosure checklists, note formats, and year-end workflows.
- Review consolidation processes for subsidiaries electing the reduced-disclosure option to ensure consistency with group-level reporting.
- Evaluate whether existing systems capture the minimum required disclosure data.
3. Impact on Group Reporting Policies
Groups with subsidiaries using SFRS(I) 19 or FRS 119 may need to reassess:
- Group policies on which entities adopt reduced disclosures.
- Interactions between reduced-disclosure financial statements and group audits.
- Whether disclosure changes affect covenant reporting or regulatory filings.
Practical Issues for Implementation
1. Transition Planning
Although effective from 2027, entities should:
- Start assessing impacts during FY2025–2026 to allow for systems updates, training, and audit planning.
- Conduct gap analyses against current disclosure practices.
2. Auditor Considerations
Audit teams may need:
- Updated audit programs for evaluating compliance with the amended standards.
- Enhanced documentation around judgments where disclosure exemptions are applied.
3. Stakeholder Communication
Entities using the reduced-disclosure route should inform:
- Parent companies (for consolidation purposes)
- Lenders or counterparties relying on financial statements
particularly if disclosures change materially.
Source: ACRA, 11 November 2025