This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice ( for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Rate-regulated Activities - IASB

Date recorded:

At its meeting on April 24, 2017, the IASB considered a revised general description of a new accounting model being developed to recognize regulatory assets and liabilities. The revised description explained the effect of regulatory agreements on customer contracts and on the entity’s financial results.

The Board’s discussion focused on regulatory agreements that include a rate adjustment mechanism that determines the amount of profit or profit margin that the entity is entitled to retain. The Board also discussed the nature of the adjustments, which arise due to: (i) variances between actual and estimated amounts; or (ii) temporary differences created when the regulated rate in one period includes amounts relating to required activities carried out by the entity in a different period.

The Board was not asked to make any decisions. The Board plans to discuss further aspects of the model in its May meeting.

Review the IASB Update and podcast on the IASB's Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.