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Wednesday 24 September 2014

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IASB Meeting Summaries and Observer Notes

IASB Meeting Summaries and Observer Notes


 IASB February 2014


 

The IASB continued its discussion about the distinguishing features of rate regulation that should form the focus of the Discussion Paper that the IASB intends to publish for this project. The IASB considered:

        a.         a summary of the project discussions so far;
        b.         a refined description of the distinguishing features of rate regulation, including a description of the type of mechanism that is typically used to calculate the amount of revenue that a rate-regulated entity is entitled to charge to customers during the regulatory period; and 
        c.         an initial analysis of whether the revenue model contained in the forthcoming IFRS [X] Revenue from Contracts with Customers (the Revenue Standard) could be tailored in order to provide the basis of a model for rate-regulated activities.

The IASB was not asked to make any technical decisions, but acknowledged that, although it would be challenging to use the revenue model in the forthcoming Revenue Standard to reflect the interaction between the rate-regulated entity and the rate regulator, it would be worthwhile to explore this in the Discussion Paper. The IASB provided advice to the staff on developing the content of the Discussion Paper.


Next steps


Discussions on the Rate-regulated Activities research project will continue in future Board meetings.

 

Date: 2/19/2014