The IASB continued its discussions on the responses received on its exposure draft Rate-regulated Activities published in July 2009. At this meeting, the Board focused on the key issue of whether regulatory assets and regulatory liabilities exist, whether they should be recognised in accordance with the current Framework for the Preparation and Presentation of Financial Statements and whether they are consistent with other current IFRSs. The Board reviewed analyses of several aspects of the key issue prepared by the staff including an analysis of the regulatory environment, comparison to current IFRSs, comparison to other current Board projects, analysis of the unit of account to apply to this project, a summary of outreach efforts, a summary of the potential application of this project to non-utility entities and a summary of requests for an interim standard.
The Board discussed how to continue with this project. The Board is divided on whether to amend IFRSs to require the recognition of regulatory assets and liabilities and, if so, how to measure those regulatory assets and liabilities. The issues raised by this project relate to broader concerns on the accounting for intangible assets, and decisions reached on this project may have broader implications than originally anticipated.
The Board discussed whether an interim IFRS should be developed to assist countries moving to IFRSs in the near future. The Board decided that it should not develop an interim standard, but should instead continue to progress the work on the current project. Accordingly, the Board directed the staff to continue its research and analysis on this project to permit future deliberations by the Board as time and resources permit, acknowledging the existing guidance and current practice that has developed in the 110+ countries that apply IFRSs.