TGS webinar: the future of financial reporting – IFRS19 & IQSM

TGS webinar: the future of financial reporting – IFRS19 & IQSM

Financial reporting is evolving. At a recent webinar, Silvia and Nizar, a longtime external consultant for TGS, unpacked the significance of IFRS 19 and the International Standard on Quality Management (IQSM)—two frameworks reshaping how firms approach financial reporting and quality management.

These frameworks help simplify financial reporting and strengthen quality management. Understanding them will help firms stay agile, compliant, and trusted by clients.

To rewatch the webinar, click here.

IFRS 19: The subsidiaries’ saviour

IFRS 19  standard is something that concerns many members. It is designed for subsidiaries without public accountability. Under IFRS 19, subsidiaries continue to apply full IFRS recognition and measurement. With this new framework, the standard is simplified, and allows greater flexibility in what is necessary to report back to mother companies. It is currently not compulsory but will be from January 2027 – members have 2 years to prepare for what’s new.

The purpose of IFRS 19 is to ease the reporting burden without sacrificing the integrity of financial information. The aim is to reduce disclosure requirements for subsidiaries without public accountability, allow the use of full IFRS recognition and measurement with fewer disclosures and simplify financial reporting while maintaining transparency and comparability. It makes life easier for subsidiaries and parent companies alike.

IFRS 19 has many new features, they still follow full IFRS rules for recognising assets, liabilities, income, expenses and their measurements.  This means their accounting numbers stay aligned with group-wide policies and the parent company’s IFRS standards. IFRS 19 is especially beneficial for small or medium-sized entities or back-office subsidiaries, as the administrative and reporting burden decreases.

Who qualifies for IFRS 19?

An entity has public accountability if its debt or equity instruments are traded in a public market or it is a financial institution that holds assets in a fiduciary capacity for a broad group of outsiders.

Transparency report 2024

While IFRS 19 focuses on simplifying financial reporting, ISQM is about raising the bar for quality. ISQM creates a proactive approach to managing risk and maintaining high standards.

Quality lies at the heart of the TGS strategy. Every firm must take charge of it, not just rely on procedures or external reviews.

Under ISQM, TGS firms are building systems that catch risks early. Strong leadership and clear ethical guidelines are now central to our approach. Firms must evaluate every client relationship carefully, plan resources effectively, and monitor the performance of every engagement. Technology and innovation play a growing role, but supervision, human judgment, and continuous learning remain essential.

The feedback loop

Monitoring and remediation are crucial under ISQM. Firms must regularly review their files, gather client feedback, and track performance data. They must correct deficiencies quickly and learn from mistakes. At TGS, we encourage members to share results from their internal monitoring, external regulatory reviews, and feedback received from public oversight bodies. We also track the list of public interest entities audited, risky clients, and service line revenues. This collective transparency strengthens the network as a whole.

Both IFRS 19 and ISQM point to the same goal: building a smarter, stronger future. IFRS 19 reduces complexity but keeps the numbers accurate. ISQM guarantees that quality remains at the heart of everything we do.

In a world that demands more transparency, speed, and expertise, TGS firms are ready to lead with confidence, agility, and integrity