At its meeting on February 18-20, 2015, the IASB met to discuss a summary of the comments received in response to the DP, including noting the main messages received through outreach and comment letters, namely: (i) most respondents agree that the DP provides a good description of the distinguishing features of rate regulation. Many suggest that the scope of any future guidance should focus more on the rights and obligations and how they relate to the rate-setting mechanism, with other features being considered more as supporting features; (ii) many respondents suggest that the combination of rights and obligations created by defined rate regulation may not always be faithfully represented in IFRS financial statements and that the project should lead to the recognition of at least some regulatory deferral account balances in IFRS financial statements; (iii) many respondents agree that IFRS 14, Regulatory Deferral Accounts, is a good starting point for disclosure requirements; and (iv) of the four approaches outlined in the DP, there was the most support for the recognition of the financial effects of rate regulation through specific IFRS requirements.  No decisions were made at the meeting.

Review the IASB Update.