Rate-regulated Activities - IASB Exposure Draft (2009)
- Completed
- Discussion paper consultation
- Isabel Batista
Description
Rate-regulated activities were first discussed by IFRIC in 2005, and then again in 2008. The IFRIC decided not to add to its agenda a project on rate-regulated activities, but rather to refer the issue to the IASB. In December 2008, the Board added to its agenda a project on rate-regulated activities to address whether entities subject to regulated activities could or should recognise an asset or a liability as a result of rate regulation.
In July 2009, the IASB published an Exposure Draft (ED 2009/8) on Rate-regulated Activities as its first due process document in this project.
On 18 December 2009, EFRAG issued its comment letter on the IASB's ED.
In February 2010, the IASB began its discussions on the responses received on its ED. The views were divided, with some respondents supporting the proposals and others asking the IASB not to develop a standard based on the ED until further work had been carried out and field tests and outreach activities conducted.
The IASB discussed the logistical considerations impacting upon this project and directed the staff to continue its research and analysis on the project, and to focus on the key issue of whether regulatory assets and regulatory liabilities exist in accordance with the current Framework for the Preparation and Presentation of Financial Statements and whether they are consistent with other current IFRSs.
Discussions continued at the IASB meetings in July and September 2010. The IASB reconfirmed its earlier view that the matter could not be resolved quickly, and decided that the next step should be to consider whether to include rate regulated activities in its future agenda.
The IASB therefore decided to include in its public consultation on its future agenda a request for views on what form a future project might take, if any, to address rate-regulated activities. The feedback received will assist the Board in setting its future agenda post 2011. This project is now closed.
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In July 2009, the IASB published an Exposure Draft (ED 2009/8) on Rate-regulated Activities as its first due process document in this project.
On 18 December 2009, EFRAG issued its comment letter on the IASB's ED.
In February 2010, the IASB began its discussions on the responses received on its ED. The views were divided, with some respondents supporting the proposals and others asking the IASB not to develop a standard based on the ED until further work had been carried out and field tests and outreach activities conducted.
The IASB discussed the logistical considerations impacting upon this project and directed the staff to continue its research and analysis on the project, and to focus on the key issue of whether regulatory assets and regulatory liabilities exist in accordance with the current Framework for the Preparation and Presentation of Financial Statements and whether they are consistent with other current IFRSs.
Discussions continued at the IASB meetings in July and September 2010. The IASB reconfirmed its earlier view that the matter could not be resolved quickly, and decided that the next step should be to consider whether to include rate regulated activities in its future agenda.
The IASB therefore decided to include in its public consultation on its future agenda a request for views on what form a future project might take, if any, to address rate-regulated activities. The feedback received will assist the Board in setting its future agenda post 2011. This project is now closed.
