Last Updated on 12/02/2020 by 75385885

IFRS 14 Objective Scope

Objective

1 The objective of this Standard is to specify the financial reporting requirements for regulatory deferral account balances that arise when an entity provides goods or services to customers at a price or rate that is subject to rate regulation.

2 In meeting this objective, the Standard requires:

1. limited changes to the accounting policies that were applied in accordance with previous generally accepted accounting principles (previous GAAP) for regulatory deferral account balances, which are primarily related to the presentation of these accounts; and
2. disclosures that:
   1. identify and explain the amounts recognised in the entity’s financial statements that arise from rate regulation; and
   2. help users of the

Last Updated on 12/02/2020 by 75385885

IFRS 14 Recognition measurement impairment and derecognition

Temporary exemption from paragraph 11 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

9 An entity that has rate-regulated activities and that is within the scope of, and elects to apply, this Standard shall apply paragraphs 10 and 12 of IAS 8 when developing its accounting policies for the recognition, measurement, impairment and derecognition of regulatory deferral account balances.

10 Paragraphs 11–12 of IAS 8 specify sources of requirements and guidance that management is required or permitted to consider in developing an accounting policy for an item, if no relevant Standard applies specifically to that item. This Standard exempts an entity from applying paragraph … Read more

Last Updated on 12/02/2020 by 75385885

IFRS 14 Presentation of rate regulations

Changes in presentation

18 This Standard introduces presentation requirements, outlined in paragraphs 20–26, for regulatory deferral account balances that are recognised in accordance with paragraphs 11–12. When this Standard is applied, the regulatory deferral account balances are recognised in the statement of financial position in addition to the assets and liabilities that are recognised in accordance with other Standards. These presentation requirements separate the impact of recognising regulatory deferral account balances from the financial reporting requirements of other Standards.

19 In addition to the items that are required to be presented in the statement of financial position and in the statement(s) of profit or loss and other comprehensive … Read more

Last Updated on 12/02/2020 by 75385885

IFRS 14 Disclosure of rate regulations

Objective

27 An entity that elects to apply this Standard shall disclose information that enables users to assess:

1. the nature of, and the risks associated with, the rate regulation that establishes the price(s) that the entity can charge customers for the goods or services it provides; and
2. the effects of that rate regulation on its financial position, financial performance and cash flows.

28 If any of the disclosures set out in paragraphs 30–36 are not considered relevant to meet the objective in paragraph 27, they may be omitted from the financial statements. If the disclosures provided in accordance with paragraphs 30–36 are insufficient to meet the objective in … Read more

Last Updated on 12/02/2020 by 75385885

IFRS 14 Rate-regulated activities

Appendix B Application Guidance

This appendix is an integral part of the Standard.

B1 Historically, rate regulation applied to all activities of an entity. However, with Read more

Last Updated on 12/02/2020 by 75385885

IFRS 14 Regular Deferral Accounts

IFRS 14 Continuation of existing accounting policies

B3 For the purposes of this Standard, a regulatory deferral account balance is defined as the balance of any expense (or income) account that would not be recognised as an asset or a liability in accordance with other Standards, but that qualifies for deferral because it is included, or is expected to be included, by the rate regulator in establishing the rate(s) that can be charged to customers. Some items of expense (income) may be outside the regulated rate(s) because, for example, the amounts are not expected to be accepted by the rate regulator or because they are not within the scope … Read more

Last Updated on 12/02/2020 by 75385885

IFRS 14 Applicability of other Standards

B7 An entity that is within the scope of, and that elects to apply, the requirements of this Standard shall continue to apply its previous GAAP accounting policies for the recognition, measurement, impairment and derecognition of regulatory deferral account balances. However, paragraphs 16–17 state that, in some situations, other Standards might also need to be applied to regulatory deferral account balances in order to reflect them appropriately in the financial statements. The following paragraphs outline how some other Standards interact with the requirements of this Standard. In particular, the following paragraphs clarify specific exceptions to, and exemptions from, other Standards and additional presentation and disclosure requirements that are … Read more