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IFRS® Accounting Standards

AcSB Exposure Draft – Subsidiaries without Public Accountability: Disclosures – December 2021


The Accounting Standards Board (AcSB) proposes, subject to comments received following exposure, to incorporate into Part I of the CPA Canada Handbook – Accounting, new standard Subsidiaries without Public Accountability: Disclosures.

This AcSB Exposure Draft reflects proposals made by the International Accounting Standards Board (IASB) that the AcSB intends to adopt, subject to deliberating comments received, as Canadian generally accepted accounting principles.

Comments are requested from individuals and organizations who agree with the Exposure Draft proposals as well as from those who do not. Comments are most helpful if they relate to a specific paragraph or group of paragraphs. Any comments that express disagreement with the proposals should clearly explain the problem and include a suggested alternative, supported by specific reasoning.

Comments received on the AcSB Exposure Draft will be available on the website shortly after the comment deadline unless confidentiality is requested. The request for confidentiality must be stated explicitly within the response.

IASB® Exposure Draft

The IASB recently issued the Exposure Draft, “Subsidiaries without Public Accountability: Disclosures,” which is available on the IASB website at

The IASB proposes a new voluntary standard that would permit eligible subsidiaries to apply IFRS® Standards with reduced disclosure requirements in their financial statements. The proposals set out the disclosure requirements for a subsidiary electing to apply it and the disclosure requirements in IFRS Standards that it would replace. The IASB proposes that an entity would be permitted to apply the draft standard if, at the end of the reporting period, it is a subsidiary which does not have public accountability and has a parent that produces consolidated financial statements available for public use that comply with IFRS Standards. 

The IASB’s Exposure Draft includes a Basis for Conclusions that is not part of this Exposure Draft. This material may provide useful information to stakeholders.

Comments Requested

The AcSB encourages Canadian stakeholders to respond to the IASB on its Exposure Draft. Specific questions on which the IASB would like input are provided in the Invitation to Comment in its Exposure Draft. The AcSB requests that comment letters be sent directly to the IASB with a copy to the AcSB.

The AcSB would like input from Canadian respondents on the following additional questions regarding the proposed amendment:

  1. The IASB has developed the proposed standard in accordance with its due process for application around the world. Assuming the Exposure Draft proposals are finalized and approved by the IASB in accordance with its due process, do you think that the proposals are appropriate for application in Canada? If not, please specify which aspects of the proposals, and what circumstances, make the accounting requirements proposed in the Exposure Draft inappropriate.
  2. Assuming the Exposure Draft proposals are finalized, a new standard is issued by the IASB, and endorsed by the AcSB and incorporated into Part I of the Handbook, would you apply it if the entity met the eligibility requirements?
  3. Do you agree with the IASB’s proposed eligibility requirements? If not, do you think the scope of the standard should be widened to include entities other than subsidiaries that are small or medium-sized entities? If so, please specify which types of entities. 

Send responses to these additional questions directly to the AcSB.

Staff Contact(s)

Katharine Christopoulos, CPA, CA Director, Accounting Standards Board

Thank you for your interest in the AcSB Exposure Draft – Subsidiaries without Public Accountability: Disclosures.

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