The International Accounting Standards Board (IASB) is redeliberating proposals in the Exposure Draft Regulatory Assets and Regulatory Liabilities.
The Exposure Draft, published in January 2021, sets out the IASB’s proposals for a model to account for regulatory assets and regulatory liabilities. If issued as a new IFRS Accounting Standard, the proposals would replace IFRS 14 Regulatory Deferral Accounts.
The IASB discussed feedback on the Exposure Draft in October and November 2021.
The IASB met on 20 June 2023:
Estimating uncertain future cash flows (Agenda Paper 9B)
The IASB tentatively decided that the prospective Accounting Standard would:
All 14 IASB members agreed with the decisions in (a) and (d). Thirteen of 14 IASB members agreed with the decisions in (b) and (c).
The IASB also tentatively decided that the prospective Accounting Standard would not provide additional guidance on circumstances in which the ‘most likely amount’ method might better predict uncertain future cash flows.
Twelve of 14 IASB members agreed with this decision.