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.
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.