Rate-regulated Activities – IASB
At its meeting on February 22, 2018, the Board discussed the possible accounting model being developed for activities subject to "defined rate regulation".
The Board tentatively decided that:
- the accounting model will use as its unit of account the individual timing differences that create the incremental rights and obligations arising from the regulatory agreement.
- the present regulatory right—to charge a rate increased by an amount as a result of past events—meets the definition of an asset in the Conceptual Framework.
- the present regulatory obligation—to provide goods or services at a rate reduced by an amount as a result of past events—meets the definition of a liability in the Conceptual Framework.
The Board will discuss proposals for the scope and recognition requirements of the model before deciding whether to publish an Exposure Draft or a Discussion Paper as the next consultation document for the project.
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