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Tuesday 16 September 2014

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Rate-regulated Activities

 Rate-regulated Activites


Project Status

Rate Regulation (reseach project)

Previous project

In July 2009, the IASB published for public comment the Exposure Draft (ED) Rate-regulated Activities. After reviewing the responses to that ED, the IASB decided that it could not resolve, in a timely manner, the complex, fundamental issues involved. The IASB suspended the project in September 2010.

As a result of the views received from its 2011 Agenda Consultation, the IASB, in September 2012, initiated a revised Rate-regulated Activities research project.

Current project

The IASB is developing a Discussion Paper to consider the common features of rate regulation and which of them, if any, distinguish a rate-regulated entity’s rights and obligations from those of a non-rate-regulated entity in the same industry. The Discussion Paper will also explore whether any distinguishing features of rate regulation create assets and liabilities, in addition to those already recognised in accordance with IFRS for non-rate-regulated entities, and, if so, how such assets or liabilities might be accounted for.

Interim IFRS

In December 2012, the IASB decided to develop an interim Standard to provide short-term guidance for first-time adopters of IFRS until the research project is completed. IFRS 14 Regulatory Deferral Accounts was issued in January 2014 and is effective for annual reporting periods beginning on or after 1 January 2016. Early application is permitted..