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Rate-regulated Activities

IASB Meeting Summaries and Observer Notes

 IASB September 2010



At its September 2010 meeting, the Board continued its discussions on rate-regulated activities. The Board received papers that focused on:

  • whether the effect of regulators should be analysed in the context of IAS 38 Intangible Assets and IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
  • whether the effect of regulators should be recognised in financial statements that are prepared in accordance with existing IFRSs.
  • the status of the Rate-regulated Activities project as a stand-alone project.
  • whether IFRSs should be amended to require specific disclosure requirements related to the impact of regulations on an entity that is subject to regulations.

The Board did not reach conclusions on any technical issues at this meeting.

The Board reconfirmed its earlier view that the matter could not be resolved quickly. Accordingly the Board decided that the next step should be to consider whether to include rate regulated activities in its future agenda.

The Board therefore decided to include in its public consultation on its future agenda a request for views on what form a future project might take, if any, to address rate-regulated activities. The feedback received will assist the Board in setting its future agenda. The potential future steps include, but are not limited to:

  • a disclosure only standard
  • an interim standard, similar to IFRS 4 Insurance Contracts or IFRS 6 Exploration for and Evaluation of Mineral Resources, to grandfather previous GAAP accounting practices with some limited improvements
  • a medium term project focused on the effects of rate-regulation
  • a comprehensive project on intangible assets.


Date: 9/16/2010