AcSB publishes first research paper on rate-regulated activities

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22 Nov 2018

The Canadian Accounting Standards Board (AcSB) has published a research paper that explores the decision-usefulness of financial information that reflects the economics of rate-regulated activities by assessing data taken from the practical experiences of users of the financial statements of entities with such activities.

The data presented in the paper is intended to assist an understanding of the following:

  1. The presence of rate-regulated entities in the capital markets in Canada and other jurisdictions;
  2. The regulatory framework that governs the relationship between the rate regulator and the rateregulated entity;
  3. The similarities and differences in the design of regulatory frameworks across jurisdictions;
  4. The degree to which the regulatory framework can influence the enforceability, and value, of an entity’s rights and obligations arising from the performance of rate-regulated activities; and
  5. The information that users such as debt and equity analysts, and credit rating agencies, consider when making investing and lending decisions.

The AcSB notes that the research paper contributes to the work of the IASB and national standard-setters as the observations drawn from the data gathered are relevant and of value to the consideration of accounting for rate-regulated activities under IFRSs.

Please click to access a short overview and the full research paper through the press release on the AcSB website.

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