Rate-regulated Activities – IASB
At its meeting on July 17, 2018, the Board continued its discussion from May 2018 on the measurement of regulatory assets. It discussed and made tentative decisions with respect to the following issues: (i) estimating future cash flows; (ii) significant financing component and discount rate; (iii) changes in estimated cash flows, including changes caused by changes in the discount rate; and (iv) measurement of regulatory liabilities. The Board asked the staff to develop suggestions to simplify, clarify and add guidance to the tentative decisions made at this meeting when describing the model. The Board also started its discussions about an objective to guide the development of presentation and disclosure requirements for the model. The Board expects to continue its discussions on presentation and disclosure at a future meeting.
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