IASB ED/2021/1

  • For-profit

Regulatory Assets and Regulatory Liabilities

The IASB has recently released ED/2021/1 Regulatory Assets and Regulatory Liabilities. The proposed new standard would replace IFRS 14 Regulatory Deferral Accounts by introducing a new comprehensive accounting model for regulatory assets and liabilities. The standard would apply when the entity is party to a regulatory agreement that determines the regulated rate the entity can charge for the goods or services it supplies to customers.

Currently, there is no specific guidance in IFRS® Standards addressing the accounting for rate‑regulated activities and entities use different accounting models to report the effects of rate regulation.

Internationally, the proposals are expected to affect some entities in the utilities sector and the transport industry.  

The purpose of the ED is to provide investors with better information about the performance of rate‑regulated entities. There can be a timing mismatch between the period in which an entity supplies the goods and services, and the period in which the entity can charge for them.

The ED proposes that entities subject to rate regulation report new categories of regulatory assets and liabilities on the balance sheet, and regulatory income and expenses in the income statement.


Consultation Documents

  • Exposure Draft  for the Regulatory Assets and Regulatory Liabilities consultation. The deadline for comments to the IASB is 30 June 2021. 

Have a look

  • Snapshot—provides an overview of the proposals 

Have a look 

  • Watch a short video that introduces the proposed requirements

IASB Debrief Regulatory assets and liabilities video preview 


Commenting on the Proposal

Due to the limited number of New Zealand entities that are believed to fall within the scope of the proposals, the NZASB is not intending to comment at this stage. However, if your entity may fall under the proposals the NZASB would like to hear from you before 30 April 2021.

This is your opportunity to comment on this ED.

We encourage Tier 1 and Tier 2 for-profit entities to comment on this ED directly to the IASB (with a copy to the NZASB).

Comments are due to the IASB by 30 June 2021. 

Your comments can be made electronically to the IASB website by clicking on the following link https://www.ifrs.org/projects/open-for-comment/. First-time users must register with the IASB to submit electronically.


Upload your submission here

Please use this secure online form.

It has been designed to make your upload safe, quick and easy. 

You can:

  • Upload an MS Word document (and a PDF file, if you wish); or
  • Write your comments below in the space provided.

You can upload up to TWO documents. 

Please note:

  • We would appreciate receiving a copy of your comments in electronic form (preferably Microsoft Word format).  This helps us to more efficiently collate and analyse comments. Please also specify the exposure draft number and title in your electronic file. 

  • Tell us on whose behalf you are making the comments (for example on behalf of a group or an entity).

  • We intend publishing all comments on the XRB website, unless they may be defamatory. If you have any objection to this, we will not publish them. However, they will remain subject to the Official Information Act 1982 and, therefore, may be released in part or in full. The Privacy Act 1993 also applies.

  • If you have an objection to the release of any information contained in your comments, we would appreciate you identifying the parts of your comments to be withheld, and the grounds under the Official Information Act 1982 for doing so (for example, that it would be likely to unfairly prejudice the commercial position of the person providing the information).