02/06/2021 - EFRAG Secretariat Briefing: Regulatory Assets and Regulatory Liabilities
EFRAG Secretariat has issued a Briefing to stimulate debate on the outcome of the proposed requirements on scope included in the IASB's exposure draft Regulatory Assets and Regulatory Liabilities. The views expressed in this Briefing are tentative and reflect the EFRAG Secretariat’s understanding of how the proposals on scope of the exposure draft might be applied.
In January 2021, the IASB issued the Exposure Draft ED/2021/1 Regulatory Assets and Regulatory Liabilities ('the ED'). The ED establishes accounting principles for recognition, measurement, presentation and disclosure of regulatory assets, regulatory liabilities, regulatory income and regulatory expense in order to provide relevant information about the effects of rate regulation on an entity's financial reporting.
To stimulate debate on the practical implications of the proposals on scope, EFRAG Secretariat has considered how the scope criteria included in the IASB’s ED might apply to different agreements.
Due to the nature of the Briefing, the EFRAG Secretariat has not included questions to constituents. However, constituents may express their views on the topic when responding to the EFRAG draft comment letter.
The Briefing is available here.
