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  • Service: Audit, IFRS
  • Date: 3/31/2014

Interim relief for first-time adopters with rate-regulated activities 

The first specific guidance on accounting for the effects of rate regulation under IFRS was issued in January, with the publication of an interim standard – IFRS 14 Regulatory Deferral Accounts. Now we present our detailed analysis and insight.

First-time adopters of IFRS will be able to continue using previous GAAP to account for regulatory deferral account balances while the IASB completes its comprehensive project in this area.


For rate-regulated entities that have deferred transition to IFRS, particularly in Canada, the interim standard will have come as welcome news. Elsewhere, however, all eyes will be on the comprehensive project.

 

Our First Impressions considers the requirements of the new standard, and explains its key concepts.

First Impressions: Regulatory deferral accounts

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This guidance eases the transition to IFRS: it permits first-time adopters to continue to account for regulatory deferral account balances using previous GAAP.

© 2014 KPMG IFRG Limited is a UK company, limited by guarantee. All rights reserved. KPMG IFRG Limited, registered in England No 5253019. Registered office: 8 Salisbury Square, London, EC4Y 8BB

 

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