DSV maps eligible subsidiaries for voluntary IFRS 19 adoption

DSV is assessing which subsidiaries could use IFRS 19 and whether local rules accept the standardFAR, according to its Head of Group Financial Compliance, Susanne Simona Seested. The group is preparing systems, templates and processes alongside training for finance teams, with the aim of introducing the standard where it adds value.

For reporting teams considering the same choice, eligibility and local acceptance are central checks. IFRS 19 is voluntaryFAR and provides reduced disclosure requirements for eligible subsidiariesFAR. Those entities continue to apply the requirements of other IFRS Accounting Standards apart from disclosures, for which IFRS 19 supplies the requirementsIfrs. It therefore changes the disclosure framework while retaining the underlying IFRS accounting requirements.

The IFRS Foundation identifies two conditions for an eligible subsidiary: it must lack public accountability, and it must have a parent producing consolidated financial statements that comply with IFRS Accounting Standards and are available for public useIfrs. Public accountability includes having debt or equity traded in a public market, or being in the process of issuing instruments for such tradingIfrs. Under the IFRS Foundation’s definition, an entity also has public accountability if one of its primary businesses is holding assets in a fiduciary capacity for a broad group of outsiders.

DSV’s assessment combines identifying subsidiaries that could qualify with reviewing local regulatory acceptance in each country. Seested highlights the importance of local approval, particularly where national accounting standards remain necessary for tax purposes. Implementation also requires adjustments to systems, internal controls and audit procedures, together with a clear understanding of the disclosures that remain necessary.

Seested expects reduced disclosures to make audit work more efficient and lower audit-hour and administrative costs. These are anticipated benefits: DSV is still assessing implementation, and its stated goal is to use IFRS 19 where it offers tangible valueFAR. The preparation described includes adapting the reporting framework and training finance departments to support consistent application across the group.

IFRS 19 takes effect for annual reporting periods beginning on or after 1 January 2027Ifrs, with earlier application permittedFAR. The applicable standard is IFRS 19 Subsidiaries without Public Accountability: Disclosures, covering eligibility and reduced disclosures while other IFRS accounting requirements continue to applyIfrs.