Hello, can someone answer my question: In general, if a subsidiary is required to adopt IFRS because its securities are publicly traded, is the parent company also obliged to adopt IFRS (rather than, say, national accounting standards), or is there no such obligation? Thank you very much. Milan

Regarding this question, it should be clarified that the obligation to apply IFRS is generally based on each reporting entity's own circumstances, not on the obligations of its subsidiaries. According to the International Financial Reporting Standards (IFRS) and relevant regulatory frameworks, whether a parent company must adopt IFRS depends on whether it itself falls into the category of entities required to adopt IFRS, such as whether its securities are traded on a public market, or whether it is subject to the regulations of a specific jurisdiction.

If the parent company itself does not publicly trade securities, and the accounting standards in its country allow or require the use of national standards, then even if its subsidiary must adopt IFRS, the parent company is not necessarily forced to adopt IFRS. However, in some cases, such as when the parent company needs to prepare consolidated financial statements and its subsidiary adopts IFRS, the parent company may choose or need to adopt IFRS for consolidation purposes to ensure consistency in the statements. But this is not a universal obligation; it depends on specific regulatory requirements or the parent company's own accounting policy choices.

Therefore, in short, the subsidiary's IFRS obligation does not automatically extend to the parent company. Whether the parent company must adopt IFRS should be determined based on its own legal and regulatory environment. It is recommended to consult a professional accountant or local regulatory authorities to obtain accurate guidance specific to the situation.

Thank you for your question, and I hope the above analysis is helpful to you.