Rate-regulated Activities – International Accounting Standards Board

Date recorded:

At its meeting on March 22, 2018, the International Accounting Standards Board (the Board) discussed the possible accounting model being developed for activities subject to "defined rate regulation".  In particular, the Board discussed:

  1. which features of defined rate regulation are both necessary and sufficient for the origination of regulatory assets and regulatory liabilities and so should define the scope of the model for recognition and measurement; and
  2. the criteria for recognizing regulatory assets and regulatory liabilities in the financial statements.

The Board will discuss proposals for the measurement requirements of the model before deciding whether to publish an Exposure Draft or a Discussion Paper as the next consultation document for the project. 

At a later meeting, the Board will discuss whether, for disclosure purposes only, it wishes to extend the scope of the resulting IFRS Standard to require disclosures about forms of rate regulation other than defined rate regulation.

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

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