Final stage
In response to feedback received on the Exposure Draft Rate-regulated Activities, published in 2009, the Board suspended this project (2009 project) to allow it to focus on higher priority projects.
In response to subsequent feedback from the 2011 Agenda Consultation, the Board decided not to restart the 2009 project, but instead started a new project titled ‘Rate-regulated Activities’. Consequently, this 2009 project is closed.
About
In July 2009, the Board published for public comment the Exposure Draft Rate-regulated Activities. The Exposure Draft proposed that, in some circumstances, rate regulation could give an entity rights or obligations to increase or decrease prices to be charged to customers for future supplies of goods or services that meet the definitions of assets or liabilities in the Framework for the Preparation and Presentation of Financial Statements (Framework). Responses to the Exposure Draft highlighted a diversity of strongly held views, which demonstrated differences in interpreting the Framework. After reviewing the responses to the Exposure Draft, the Board decided that it could not resolve the complex, fundamental issues of rate-regulated activities in a timely manner. The Board suspended the project in September 2010.
In response to the views received from its 2011 Agenda Consultation, in September 2012, the Board started a revised Rate-regulated Activities project. Though the revised project was not a continuation of the first project with the same name, the Board will make use of evidence gathered in 2009.
In addition, the Board also decided to start a separate project in December 2012 to develop an interim IFRS Standard for use until it completes the Rate-regulated Activities project. In January 2014, the Board issued IFRS 14 Regulatory Deferral Accounts. IFRS 14 allows a first-time adopter within its scope to continue to apply its national GAAP to account for its regulatory deferral account balances in financial statements prepared using IFRS Standards, subject to some changes to the presentation of those balances.
