Energy & Utilities Update: IASB Issues Interim Standard on Rate-Regulated Activities
January 31, 2022

The IASB has issued an interim Standard, IFRS 14, and Regulatory Deferral Accounts. IFRS 14 is effective from January 1, 2016, with early application permitted.

IFRS does not provide any specific guidance for rate-regulated activities. The IASB has a project to consider the broad issues of rate regulation and plans to publish a Discussion Paper on this subject in 2014.  Pending the outcome of this comprehensive Rate-regulated Activities project, the IASB decided to develop IFRS 14 as an interim measure.

IFRS 14 permits first-time adopters to continue to recognize amounts related to rate regulation in accordance with their previous GAAP requirements when they adopt IFRS. The Standard requires that the effect of rate regulation be presented separately from other items. An entity that already presents IFRS financial statements is not eligible to apply the Standard.

For more information contact ParenteBeard Partners Jim Nowoswiat at or 215.599.2582 or Jake Kutz at  or 610.927.4543