- define regulatory assets and regulatory liabilities;
- set out criteria for their recognition;
- specify how they should be measured; and
- require disclosures about their financial effects.
The IASB was asked for guidance on the issue from many jurisdictions. Clarifying the accounting for rate regulation is of particular importance for jurisdictions that are in the process of adopting IFRSs and where accounting for the effect of rate regulation is in place for some sectors. In those cases entities are currently recognising sometimes significant ‘regulatory’ assets and liabilities by reference to the specific US standard.
Introducing the exposure draft, Sir David Tweedie, Chairman of the IASB, said:
In some countries the charges that businesses such as utilities can make are subject to regulation. IFRSs do not currently provide specific guidance on the recognition and measurement of assets and liabilities resulting from such rate regulation. Our proposals would clarify the accounting treatment of these assets under IFRSs.
The proposals in the exposure draft Rate-regulated Activities are open for comment until 20 November 2009. After considering comments received, the IASB plans to issue its proposed IFRS in 2010. The exposure draft is available on the ‘Open for Comment’ section on www.iasb.org. Subscribers may also view the document in eIFRSs.
Printed copies of the exposure draft (ISBN 978-1-907026-25-6) will be available shortly, at £10 plus shipping, from:
IASC Foundation Publications Department,
30 Cannon Street, London EC4M 6XH, United Kingdom.
Tel: +44 (0)20 7332 2730 Fax +44 (0)20 7332 2749
Email: publications@iasb.org Web: www.iasb.org
Press enquiries
For press enquiries, please contact:
- Mark Byatt, Director of Corporate Communications, IASB
Telephone: +44 (0)20 7246 6472
Email: mbyatt@iasb.org
- Sonja Horn, Communications Adviser, IASB
Telephone: +44 (0)20 7246 6463
Email: shorn@iasb.org
Technical enquiries
For technical enquiries, please contact:
- Tricia O’Malley, Director of Implementation Activities, IASB
Telephone: +44 (0)20 7246 6929
Email: tomalley@iasb.org
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