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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. 

IASB® Update May 2023

The IASB met on 24 May 2023:

  • to receive an update on the status of the project, including the expected timing for completing redeliberations and issuing the prospective Standard; and
  • to redeliberate the proposals in its Exposure Draft Regulatory Assets and Regulatory Liabilities relating to the timing of initial recognition of regulatory assets and regulatory liabilities (Agenda Paper 9A).

Timing of initial recognition (Agenda Paper 9A)

The IASB tentatively decided that the prospective Standard would retain:

  1. the proposal to require recognition of all regulatory assets and all regulatory liabilities existing at the end of the reporting period; and
  2. the proposal to treat any regulatory assets or regulatory liabilities arising from regulated rates denominated in a foreign currency as monetary items when applying IAS 21 The Effects of Changes in Foreign Exchange Rates.

All 14 IASB members agreed with these decisions.

Next milestone

IFRS Accounting Standard