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Thursday 02 October 2014

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 Update following January IASB meetings


 

The IASB held an education session on 29 January 2013 to continue its discussions about a proposal for an interim IFRS for Rate-regulated Activities that would allow entities adopting IFRS to continue to use their local GAAP requirements for rate-regulated activities until the main project is completed. The IASB discussed proposals for the scope of the [draft] interim Standard, as well as proposals for grandfathering, impairment, presentation, disclosure and transition.


No decisions were taken.


The IASB continued its discussions on a proposal for an interim Standard for Rate-regulated Activities that would allow entities adopting IFRS to continue to use their local GAAP requirements for rate-regulated activities until the main project is completed. The IASB discussed proposals for the scope of the proposed interim Standard, as well as proposals for grandfathering, impairment, presentation, disclosure and transition.

Scope

The IASB tentatively decided that:
a. the scope of the proposed interim Standard should be restricted to only those regulatory items that are not already dealt with in other Standards;
b. the type of rate regulation within the scope should be defined; and
c. the proposed interim Standard should only be available for use by those entities that adopt IFRS at the same time (ie those entities that are within the scope of IFRS 1 First-time Adoption of International Financial Reporting Standards in the period when the proposed interim Standard is first applied).


Recognition and measurement

The IASB tentatively decided to grant an exemption from paragraph 11 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to allow entities to continue to use their existing accounting policies for recognition, measurement and impairment when the proposed interim Standard is first applied and in subsequent reporting periods. Changes to those existing policies will be restricted.


Presentation and disclosure

The IASB tentatively decided that the regulatory balances should be shown as separate line items in the statement of financial position and the statement of profit or loss and other comprehensive income. The regulatory items should be segregated from non-regulatory items using subtotals. An analysis of the amounts reported should be disclosed in the notes.

Transition and consequential amendments

The IASB tentatively decided that the requirements of the proposed interim Standard should be applied retrospectively, subject to the deemed cost exemption already contained within IFRS 1. The scope of that exemption should be amended to be consistent with the scope of this proposed interim Standard.


Next steps

The staff will prepare an Exposure Draft based on these decisions and will begin the balloting process for publication.

 

Date: 1/29/2013