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Rate-regulated activities — Interim standard

Background

Rate regulation is the setting by regulatory bodies or governments of prices that can be charged to customers for services or products through regulations, often where an entity has a monopoly or dominant market position that gives it significant market power.

The issue to be addressed by this project is whether IFRSs should require entities operating in rate-regulated environments to recognise assets and liabilities arising from the effects of rate regulation. Some national GAAP provides specific guidance on this matter, but there is no equivalent guidance in IFRSs.

The IASB reactivated this project as part of its response to the Agenda Consultation 2011.  At that time, the IASB indicated that it would consider an interim standard for entities adopting IFRS that would allow entities adopting IFRS to continue to use their local GAAP requirements for rate-regulated activities until the comprehensive project is completed.

This page tracks the history of the project to issue an interim standard.

 

Current status of the project

This project has been completed. IFRS 14 Regulatory Deferral Accounts was issued on 30 January 2014, and is effective for an entity's first annual IFRS financial statements for periods beginning on or after 1 January 2016.

 

Project milestones

DateDevelopmentComments
December 2012 Project on rate regulated activities reactivated as an active project The IASB indicated an intention to consider an interim standard for entities adopting IFRS before completing a comprehensive project
25 April 2013 Exposure Draft ED/2013/5 Regulatory Deferral Accounts published Comment deadline 4 September 2013
30 January 2014 IFRS 14 Regulatory Deferral Accounts issued Effective for an entity's first annual IFRS financial statements for periods beginning on or after 1 January 2016

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.