Regulatory Deferral Accounts

In January 2014 the International Accounting Standards Board issued IFRS 14 Regulatory Deferral Accounts. IFRS 14 permits a first-time adopter of IFRS Standards that is within its scope to continue to recognise and measure its regulatory deferral account balances in its first and subsequent IFRS financial statements in accordance with its previous GAAP.

Other Standards have made minor consequential amendments to IFRS 14, including IFRS 17 Insurance Contracts (issued May 2017) and Amendments to References to the Conceptual Framework in IFRS Standards (issued March 2018).

CONTENTS

from paragraph

INTERNATIONAL FINANCIAL REPORTING STANDARD 14

REGULATORY DEFERRAL ACCOUNTS

OBJECTIVE 1

SCOPE 5

RECOGNITION, MEASUREMENT, IMPAIRMENT AND DERECOGNITION 9

Temporary exemption from paragraph 11 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors 9

Continuation of existing accounting policies 11

Changes in accounting policies 13

Interaction with other Standards 16

PRESENTATION 18

Changes in presentation 18

Classification of regulatory deferral account balances 20

Classification of movements in regulatory deferral account balances 22

DISCLOSURE 27

Objective 27

Explanation of activities subject to rate regulation 30

Explanation of recognised amounts 32

APPENDICES

A Defined terms

B Application Guidance

C Effective date and transition

D Consequential amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards

APPROVAL BY THE BOARD OF IFRS 14 REGULATORY DEFERRAL ACCOUNTS ISSUED IN JANUARY 2014

FOR THE ACCOMPANYING GUIDANCE LISTED BELOW, SEE PART B OF THIS EDITION

• ILLUSTRATIVE EXAMPLES

FOR THE BASIS FOR CONCLUSIONS, SEE PART C OF THIS EDITION

• BASIS FOR CONCLUSIONS ON IFRS 14 REGULATORY DEFERRAL ACCOUNTS
• DISSENTING OPINIONS

International Financial Reporting Standard 14 Regulatory Deferral Accounts (IFRS 14) is set out in paragraphs 1–36 and Appendices A–D. All the paragraphs have equal authority. Paragraphs in bold type state the main principles. Terms defined in Appendix A are in italics the first time that they appear in the Standard. Definitions of other terms are given in the Glossary for International Financial Reporting Standards. The Standard should be read in the context of its objective and the Basis for Conclusions, the Preface to IFRS Standards and the Conceptual Framework for Financial Reporting. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance.