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 26 May 2022 to discuss:
The IASB was not asked to make any decisions.
At this meeting, the IASB also continued to redeliberate the scope of the proposals. In particular, the IASB discussed:
The IASB tentatively decided to clarify in the Standard that, for a regulatory asset or a regulatory liability to arise, it is necessary that differences in timing originate from, and reverse through, amounts included in the regulated rates that an entity accounts for as revenue in accordance with IFRS 15 Revenue from Contracts with Customers. This is the case even when:
All 10 IASB members agreed with this decision.
The IASB tentatively decided:
All 10 IASB members agreed with this decision.
IFRS Accounting Standard
International Accounting Standards Board May 2022