Rate-regulated Activities – International Accounting Standards Board

Date recorded:

At its meeting on December 13, 2018, the Board met to discuss the accounting model being developed for activities subject to ‘defined rate regulation’. The discussion covered:

  1. the discount rate to be used when measuring regulatory assets or regulatory liabilities arising from regulatory timing differences, identifying three categories;
  2. regulatory timing differences that relate to items forming part of the regulatory capital base;
  3. regulatory timing differences that relate to items forming part of the regulatory operating expenditure; and
  4. regulatory timing differences relating to items of expense or income that will form part of the regulatory operating expenditure or the regulatory capital base when cash is paid or received. Of note, the Board expressed concerns about how the staff’s recommendations would apply to particular cases such as deferred tax and asked the staff to provide further analysis. The Board expects to continue its deliberations on these issues at a future meeting.

Review the IASB Update and podcast on the Board'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.