Rate-regulated Activities - IASB
Date recorded:
At its meeting on September 20, 2017, the IASB discussed factors that could influence the selection of a measurement basis for regulatory assets created by the rate-adjustment mechanism in a regulatory agreement. The Board focused on those regulatory assets that arise when: (i) an entity has already incurred costs carrying out a required activity; and (ii) the regulatory agreement gives the entity a right to increase the rate to charge customers in a future period with the aim of recovering those costs.
The Board plans to discuss further aspects of the measurement of regulatory assets and of regulatory liabilities at its next meeting.
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