Power and Utilities Alert 2014-4: Accounting for rate-regulated activities under IFRS

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02/10/2014 by Power & utilities
Power and Utilities Alert 2014-4: Accounting for rate-regulated activities under IFRS

At a glance

The International Accounting Standards Board (IASB) issued International Financial Reporting Standard 14, Regulatory Deferral Accounts (IFRS 14), an interim standard on the accounting for certain balances that arise from rate-regulated activities.

The International Accounting Standards Board (IASB) has issued International Financial Reporting Standard 14, Regulatory Deferral Accounts (IFRS 14), an interim standard on the accounting for certain balances that arise from rate-regulated activities.

IFRS 14 is applicable to entities adopting IFRS for the first time. It permits such entities to continue to apply their existing generally accepted accounting principles for the recognition, measurement, impairment, and derecognition of regulatory deferral balances upon adoption of IFRS. Additional details regarding the key provisions of IFRS 14 are included in the Straight away document attached below.

The broader project on rate-regulated activities is ongoing. The IASB is expected to issue a discussion paper on the project later in 2014 to seek initial views on the accounting for rate-regulated activities. Power and Utilities Alert 2014-1 provides additional information on the discussion paper project.