28/10/2020 - EFRAG seeks views of users of the financial statements of rate-regulated entities by 7 December 2020
The IASB has an active project on the accounting for regulatory assets and regulatory liabilities. The objective is to improve the information that is available to users covering rate-regulated entities. These entities may have incremental rights and obligations arising from their regulatory agreements. The IASB will be issuing an exposure draft in early 2021.
EFRAG is inviting users that undertake the fundamental analysis of rate-regulated entities to participate in an early-stage analysis of the likely impacts of possible changes to IFRS requirements. This will enable a better understanding of users' information needs. Expressions of interest in participating in this outreach are requested by close of business 7 December 2020.
The IASB is developing a new accounting model to give users of financial statements better information about a company's incremental rights and obligations arising from its rate-regulated activities.
As a key input into an early-stage analysis of possible impacts EFRAG is seeking the views of users of financial statements of rate-regulated entities including from both sell-side and buy-side analysts, portfolio managers covering equities and bonds and rating agency analysts. The analysis aims to assess possible impacts of the new accounting model under consideration based on an understanding of users' current information needs and approaches towards analysing rate-regulated entities.
The outreach will be conducted through a survey questionnaire which will take approximately 15 minutes to complete and where needed through follow-up interviews. To participate in the process, please either complete the online registration which can be accessed here or contact us on RRA@efrag.org in order for us to send you the relevant information.
For a quick overview of the proposed new accounting model, a presentation has been prepared for you.