IFRS Interpretations Committee update
The IASB received an update from the May 2012 meeting of the IFRS Interpretations Committee (Committee).
Considering the contents of the IFRIC Update newsletter drafted subsequent to the Committee’s May 2012 meeting, one IASB member requested clarification as to the Committee’s intentions regarding the issue of recognition of a regulatory asset or regulatory liability when a regulated entity is permitted to recover costs or required to refund some amounts independently of the delivery of future services.
The Committee previously deferred further work on this issue in anticipation of the Board potentially considering a similar project as part of its future agenda. While the IASB identified rate-regulated activities as a priority project during its May 2012 meeting, it did not determine a definitive timeline for taking this issue to its agenda. Therefore, the Board member asked the staff whether the Committee intended to take this issue onto its agenda.
The staff indicated that it intended to inform the Committee of the results of Board discussions at a future meeting. However, the staff did not anticipate the Committee adding this issue to its agenda given that the Committee had observed that the issue was too broad for the Committee to address within the confines of existing IFRSs and the conceptual framework.
Absent the above, Board member feedback was limited to clarification of the pervasiveness of certain issues raised to the Committee.