BC32 As described in paragraph BC8, the IASB originally decided to develop the disclosure requirements for subsidiaries without public accountability using the disclosure requirements in the IFRS for SMEs Accounting Standard with only minimal amendments. The disclosure requirements in the IFRS for SMEs Accounting Standard are based on IFRS Accounting Standards, with appropriate omissions and changes to reflect the information needs of users of the financial statements of SMEs. As explained in paragraph BC5, eligible subsidiaries are a subset of entities within the scope of the IFRS for SMEs Accounting Standard. The IASB could be satisfied that the disclosure requirements in that Standard would meet the needs of users of the financial statements of subsidiaries without public accountability. This approach avoided the IASB repeating work it had already completed when developing the disclosure requirements in the IFRS for SMEs Accounting Standard.

BC33 In developing the IFRS for SMEs Accounting Standard, the IASB acknowledged it was difficult to assess the disclosure requirements to include in that Standard. In developing the Exposure Draft and then IFRS 19, the IASB was guided by the six broad principles it used for the disclosure requirements in the IFRS for SMEs Accounting Standard:

(a) users of the financial statements of eligible subsidiaries are particularly interested in information about short-term cash flows and about obligations, commitments or contingencies, whether or not they are recognised as liabilities.