Canada proposes a two-year delay in IFRS implementation for rate-regulated activities

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29 Jul 2010

During the Board meeting in July 2010 the IASB noted that it seemed unlikely for the Board to reach a decision concerning the accounting for rate-regulated activities that would allow a solution to be found in time for the adoption of IFRSs by Canada.

The IASB considered four alternatives of how to move forward with the project:
  • a "fast-tracked" standard,
  • an interim solution for pending initial adopters of IFRS while later considering a longer term solution,
  • an amendment to IFRS 1 to permit the continued use of previous national GAAP for rate regulated activities for first time adopters, or
  • continue with the existing project under its current timeframe.
The IASB finally agreed to continue its current project under the existing timeframe without amending IFRS 1.

The Canadian Accounting Standards Board (AcSB) has now reacted by proposing a two-year delay in IFRS implementation for qualifying entities with rate-regulated activities since "Financial statement preparers in Canada currently recognizing regulatory assets and regulatory liabilities require certainty about how they should account for the effects of the actions of their rate regulator when adopting IFRSs for the first time." The new implementation date would be 1 January 2013, with earlier application permitted.

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