Exposure Draft ED/2013/5 Regulatory Deferral Accounts

The International Accounting Standards Board (IASB) has published for comment ED/2013/5 an Exposure Draft of a proposed interim International Financial Reporting Standard (IFRS) for regulatory deferral accounts.

Many jurisdictions applying IFRS have industry sectors that are subject to rate regulation. In response to feedback from its agenda consultation, the IASB has initiated a project to consider whether or not it should develop specific guidance for Rate-regulated Activities and, if so, what information about the consequences of rate regulation would be most useful for users of financial statements.

At this stage, the IASB is proposing an interim Standard that would allow entities to preserve the existing accounting policies that they have in place for rate-regulated activities immediately before they adopt IFRSs, with some modifications designed to enhance comparability.

Comments can be made to the New Zealand Accounting Standards Board (NZASB) addressed to the Chief Executive, External Reporting Board (XRB), PO Box 11250, Manners Street Central, Wellington 6142, or by email to submissions@xrb.govt.nz. Comments can also be made electronically to the IASB website (www.ifrs.org), using the ‘Comment on a proposal’ page located via the ‘Get Involved’ tab. The NZASB would appreciate copies of submissions made directly to the IASB.

Comments are due to the NZASB by 16 August 2013 and to the IASB by 4 September 2013.

It would be appreciated if respondents send their comments in electronic form (PDF and Microsoft Word formats) as it allows for efficient collation and analysis of comments. All comments will ultimately be posted on the XRB website unless respondents indicate that they wish their comments to remain confidential.

Read IASB Exposure Draft 2013/5

Read IASB Snapshot: Regulatory Deferral Accounts

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