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IFRS® Accounting Standards

Rate-regulated Activities

Summary

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) comprehensive project to determine whether (or how) IFRSs should be amended to provide guidance on rate-regulated activities. In January 2014, the IASB issued interim IFRS 14 Regulatory Deferral Accounts to provide guidance for first-time adopters of IFRSs with rate-regulated activities pending completion of this project. 

Staff Contact(s)

Davina Tam, CPA, CA Principal, Accounting Standards Board

Phone number  +1 416 204 3514
Email address  [email protected]

Project Status

  • Information gathering

    Completed during various phases of the project, including information gathered for AcSB’s research paper from 2016–2017

  • Approving project

    Project was suspended by the IASB in September 2010

    IASB approved restarting the Rate-regulated Activities: Interim IFRS project in September 2012

  • Consulting stakeholders

    IASB Discussion Paper issued in September 2014

    AcSB public outreach on Discussion Paper took place from September 2014–January 2015

    IASB Exposure Draft issued in January 2021

    AcSB Exposure Draft, which corresponds to the IASB Exposure Draft, issued in March 2021

    AcSB held a number of outreach events in April-June 2021

  • Deliberating feedback

    The IASB deliberated comments received on its Discussion Paper from September 2014–March 2015

    The IASB developed proposals for a new accounting model from March 2015 – January 2021 and is currently consulting on the proposals.

    The AcSB published its research paper in November 2018

    The IASB and AcSB are deliberating comments on their Exposure Drafts

  • Final pronouncement

News

August 5, 2021

International Activity

AcSB Response – Regulatory Assets and Regulatory Liabilities

On July 29, 2021, the AcSB responded to the IASB’s Exposure Draft, issued in January 2021. The AcSB’s letter supports the proposed accounting model for regulatory assets and regulatory liabilities as it will increase the usefulness, understandability, and comparability of an entity’s financial statements. The letter provides suggestions in certain areas to ease application and enhance the relevance of the information provided. Read our letter to find out more!

April 6, 2021

International Activity

Update – IASB and AcSB extend comment period on Exposure Draft, Regulatory Assets and Regulatory Liabilities

The IASB extended the comment period for its Exposure Draft to July 30, 2021. The AcSB updated its Exposure Draft that corresponds to the IASB’s Exposure Draft to reflect the extended deadline. Stakeholders who would like their feedback considered prior to the AcSB finalizing its comment letter are encouraged to submit comments to the AcSB by July 15, 2021.

March 15, 2021

Document for Comment

AcSB Exposure Draft – Regulatory Assets and Regulatory Liabilities

The AcSB has issued its Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Canadian stakeholders are encouraged to submit their comments by June 30, 2021.

February 3, 2021

International Activity

IASB Exposure Draft – Regulatory Assets and Regulatory Liabilities

The IASB has issued an Exposure Draft proposing a new IFRS Standard to give investors a more complete picture of the financial performance of entities subject to rate regulation. Canadian stakeholders are encouraged to submit their comments to the IASB by June 30, 2021.

November 16, 2018

News

Rate-regulated Activities – AcSB Research Paper

The Board has published its first major product under its research program, described in its 2016-2021 Strategic Plan. Read its research findings to learn how the Board is contributing to the work of the IASB and national standard setters, from an evidence-based perspective, on the topic of accounting for rate-regulated activities under IFRS® Standards.

September 22, 2014

News

IASB Discussion Paper – Reporting the Financial Effects of Rate Regulation

September 22, 2014. The IASB has issued a Discussion Paper exploring what information about rate-regulated activities is most useful to users of financial statements and the possible approaches to reporting the financial effects of rate regulation. Canadian stakeholders are encouraged to submit their comments to the IASB by January 15, 2015.

April 2, 2013

News

Request for Information – Rate Regulation

April 2, 2013. The IASB has issued a Request for Information to assist it in determining the scope of its comprehensive project on rate-regulated activities. Canadian stakeholders are encouraged to submit their comments to the IASB by May 30, 2013.

Meeting & event summaries

August 4, 2021

AcSB Decision Summary – July 21-22, 2021

The AcSB discussed a revised draft of its response letter to the IASB’s Exposure Draft, “Regulatory Assets and Regulatory Liabilities.” The Board approved its response letter, subject to final edits.

The AcSB submitted its response letter to the IASB by the July 30, 2021, deadline.

July 8, 2021

AcSB Decision Summary – June 16-17, 2021

The AcSB discussed an initial draft of its response letter to the IASB’s Exposure Draft, “Regulatory Assets and Regulatory Liabilities.” The Board provided staff with comments to incorporate in the next draft of its response letter, which will be discussed at its July 2021 meeting.

The AcSB encourages stakeholders to share their views on the Exposure Draft by submitting their response letter to the IASB by July 30, 2021, with a copy to the AcSB. If respondents would like the Board to consider their comments when drafting its letter to the IASB, they should submit their response letters to the AcSB by July 15, 2021.

May 19, 2021

AcSB Decision Summary – May 19, 2021

The AcSB had its first discussion on the key points to include in its response letter to the International Accounting Standards Board’s (IASB) Exposure Draft, “Regulatory Assets and Regulatory Liabilities.” The Board considered stakeholder feedback obtained to date through its outreach activities on this topic. The Board will discuss an initial draft of its response letter at its June 16-17, 2021, meeting. The AcSB encourages stakeholders to share their views on the Exposure Draft by attending an upcoming virtual roundtable on June 22 (English) and June 23 (French). Stakeholders can also share their views on the Exposure Draft by submitting comment letters to the IASB by July 30, 2021, with a copy to the AcSB. If respondents would like the Board to consider their comments when drafting its letter to the IASB, they should submit their response letters to the AcSB by July 15, 2021.

February 19, 2021

AcSB Decision Summary - February 4, 2021

The AcSB received an education session on the International Accounting Standards Board’s (IASB) Exposure Draft, “Regulatory Assets and Regulatory Liabilities.” The Board discussed and approved a plan to respond to the Exposure Draft, which includes undertaking activities such as:

  • hosting a panel discussion to raise awareness of the IASB’s proposed accounting model and how it compares to the U.S. GAAP accounting model and the current accounting under IFRS 14 Regulatory Deferral Accounts;
  • undertaking targeted stakeholder group outreach; and
  • consulting with the Board’s advisory committees.

The AcSB will also hold roundtables for stakeholders across Canada to provide input on the Exposure Draft. Stakeholders can monitor the Board’s project page for opportunities to share feedback on the Exposure Draft. The deadline to submit a response letter to the IASB is June 30, 2021.

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal voting process.