ICAI | Exposure Draft of Regulatory Assets and Regulatory Liabilities


Quick Summary
The Institute of Chartered Accountants of India (ICAI) has released an Exposure Draft concerning Regulatory Assets and Regulatory Liabilities. This draft aims to replace the existing IFRS 14, which allows temporary accounting approaches for rate regulation effects. The proposals are intended to provide users of financial statements with a clearer understanding of the financial relationship between revenue and expenses for regulated entities. ICAI is inviting stakeholders to submit comments on this draft by May 10, 2021.

The Exposure Draft proposes to supersede existing IFRS 14, Regulatory Deferral Accounts, an interim Standard that permits a variety of accounting approaches for the effects of rate regulation to continue temporarily. The proposals would, if implemented, affect entities subject to a regulatory agreement that is capable of creating regulatory assets and regulatory liabilities. For users of financial statements, the IASB expects that application of the proposals would result in financial statements providing a clearer and more complete picture of the relationship between the revenue and expenses of those entities.

ICAI Exposure Draft: Regulatory Assets and Liabilities

Invitation to comment

The Accounting Standards Board (ASB) of ICAI with the aim to provide an opportunity to the various stakeholders in India to raise their concerns at the initial International Standard-setting stage itself, invites comments from public.

The downloadable version is available at: https://www.icai.org/resource/63089asb51042.pdf

How to comment

Comments on the abovementioned ED may be submitted through any of the following modes, so as to be received not later than May 10, 2021:

1. Electronically: Click on http://www.icai.org/comments/asb/ to submit comment online (Preferred method)
2. Email: Comments can be sent to: commentsasb@icai.in
3. Postal Secretary, Accounting Standards Board,
The Institute of Chartered Accountants of India,
ICAI Bhawan, Post Box No. 7100,
Indraprastha Marg, New Delhi 110 002

Further clarifications on this ED may be sought by e-mail to asb@icai.in

FAQ :

The Exposure Draft proposes to supersede the existing IFRS 14, 'Regulatory Deferral Accounts', and aims to provide a clearer picture of the relationship between revenue and expenses for entities subject to rate regulation.

The proposals would affect entities that are subject to a regulatory agreement capable of creating regulatory assets and regulatory liabilities.

IFRS 14 is an interim Standard that permits a variety of accounting approaches for the effects of rate regulation to continue temporarily.

Comments can be submitted electronically via the ICAI website, by email to commentsasb@icai.in, or by post to the Accounting Standards Board of ICAI.

Comments must be received not later than May 10, 2021.

The downloadable version is available on the ICAI website at https://www.icai.org/resource/63089asb51042.pdf.




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