AcSB submits paper for ASAF discussion of rate regulation

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19 Sep 2016

During the upcoming meeting of the Accounting Standards Advisory Forum (ASAF) at the IASB's offices in London on 29 September 2016, members will discuss rate-regulated activities. The Canadian Accounting Standards Board (AcSB) has submitted a paper on 'Results of research on the decision-usefulness of financial information that reflects the economics of rate-regulated activities' for the discussion.

The data in the paper provides evidence, mainly from existing practice in Canada, demonstrating what information users need to understand the economics of rate-regulated activities, and how this information factors into their decision-making. It concludes that in the case of rate-regulated entities, users take into consideration the financial effects of rate regulation when making their assessments. The paper also argues that rate-regulated assets command a premium in purchase price given the stable earnings and predictable cash flows they can offer.

Please click for access to the full paper on the AcSB website.

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