The International Accounting Standards Board (IASB) has now published an Exposure Draft ‘ Regulatory Assets and Regulatory Liabilities ’ (the ED). The ED proposes to replace IFRS 14 ‘Regulatory Deferral Accounts’ and require entities subject to rate regulation to give investors better information about their financial performance.
The proposed Standard would introduce a requirement for entities to give investors such information by reporting regulatory assets and regulatory liabilities in their statement of financial position, and related regulatory income and regulatory expense in their statement of profit or loss.
The ED is open for comment until 30 June 2021.
