The Council of the European Union has received a European Commission cover note dated 13 July 2026 transmitting Annex II, which contains amendments to IFRS 19 *Subsidiaries without Public Accountability: Disclosures*. The amendments update disclosure requirements across multiple IFRS standards for subsidiaries applying IFRS 19, with specific transition rules for early adoption before IFRS 18.
The cover note, received by the Council on 17 July 2026, transmits the amendments adopted by the International Accounting Standards Board (IASB). The amendments affect IFRS 7 (Financial Instruments), IFRS 18 (Presentation and Disclosure), IAS 7 (Cash Flows), IAS 12 (Income Taxes), IAS 21 (Foreign Exchange), IAS 34 (Interim Reporting), and related appendices. Key changes include new disclosure requirements for liabilities classified as non-current subject to covenants within 12 months after the reporting period, aggregate disclosure for supplier finance arrangements, and disclosure of exposure to Pillow Two income taxes when legislation is enacted but not yet in effect. The amendments also delete several paragraphs to streamline disclosures.
The document is a cover note transmitting the text of the amendments; no Council decision or endorsement is implied at this stage. The Commission's transmittal initiates the EU endorsement process, which typically involves scrutiny by the European Parliament and the Council before adoption into EU law. The amendments are effective for entities applying IFRS 19, with early application permitted under certain conditions.
Stakeholder impact The amendments primarily affect subsidiaries without public accountability that apply IFRS 19, reducing their disclosure burden by aligning with the reduced disclosure framework. For EU regulators and standard-setters, the amendments ensure consistency with international standards. Auditors and financial statement preparers will need to update their reporting processes to reflect the new requirements, particularly for covenants, supplier finance, and Pillar Two disclosures. Investors may benefit from enhanced transparency on liquidity risks and tax exposures.
Institutional follow-up The European Commission will now assess the amendments for endorsement into EU law, a process that includes consultation with the European Financial Reporting Advisory Group (EFRAG) and approval by the Accounting Regulatory Committee. The European Parliament and the Council will have the opportunity to object within a specified period. No timeline for final adoption has been announced.