BC18 Only a subsidiary without public accountability is permitted to apply IFRS 19, as set out in paragraph 7(a)-(b) of IFRS 19, consistent with the proposals in the Exposure Draft.

BC19 In the project's research phase, the IASB investigated using the disclosure requirements in the IFRS for SMEs Accounting Standard with only minimal amendments to develop a new Standard. The IFRS for SMEs Accounting Standard is intended for entities without public accountability, and the IASB developed the new Standard with the intention that it would be available only for subsidiaries without public accountability (see paragraph 7(b) of IFRS 19). The Exposure Draft included the description of public accountability from paragraphs 1.3-1.4 of the IFRS for SMEs Accounting Standard.

BC20 The IASB discussed the description of public accountability as part of its deliberations on the second comprehensive review of the IFRS for SMEs Accounting Standard. It decided the description should list banks, credit unions, insurance companies, securities brokers/dealers, mutual funds and investment banks as examples of entities that often meet the second criterion of public accountability, by holding assets in a fiduciary capacity for a broad group of outsiders as one of their primary businesses; this was a change from the previous description, which stated that most entities in these categories would meet the second criterion. The amended description is reflected in paragraph 11(b) of IFRS 19 and will also be in the forthcoming third edition of the IFRS for SMEs Accounting Standard.