IASB Amends IFRS for First-Time Adopters, Releases Proposal on Rate-Regulated Activities


The International Accounting Standards Board (IASB) on Thursday published amendments to IFRS 1, First-time Adoption of International Financial Reporting Standards, along with an exposure draft on accounting for rate-regulated activities.

 

The amendments to IFRS 1:

·         Exempt entities using the full cost method from retroactive application of IFRS for oil and gas assets.

·         Exempt entities with existing leasing contracts from reassessing the classification of those contracts in accordance with IFRIC 4, Determining whether an Arrangement contains a Lease, when the application of their national accounting requirements produced the same result.

 

The document Additional Exemptions for First-time Adopters (amendments to IFRS 1) is available by subscription at iasb.org.

 

According to an IASB press release, the objective of the proposals on rate-regulated activities is to establish how assets and liabilities resulting from rate-regulated activities should be recognized and measured under IFRS. If adopted, the proposals would:

·         Define regulatory assets and regulatory liabilities;

·         Set out criteria for their recognition;

·         Specify how they should be measured; and

·         Require disclosures about their financial effects.

 

The IASB said it was asked for guidance on the issue from many jurisdictions. Clarifying the accounting for rate regulation is of particular importance for jurisdictions that are in the process of adopting IFRS and where accounting for the effect of rate regulation is in place for some sectors. In those cases entities are currently recognizing sometimes significant regulatory assets and liabilities by reference to the specific U.S. standard.

 

Comments are due Nov. 20. The ED is available here .

 

SPONSORED REPORT

Keeping client information safe in an age of scams and security threats

A look at the Dirty Dozen tax scams and ways to protect taxpayer information.

TECHNOLOGY Q&A

How to create maps in Excel 2016

Microsoft Excel 2016 has two new mapping capabilities. J. Carlton Collins, CPA, demonstrates how to make masterful 2D and 3D maps in Excel 2016.

QUIZ

News quiz: IRS enforcement, a hot job, and audit value

The IRS’s 2016 Data Book, a “hot job” of particular interest at this time of year, and insight into how executive and audit committees view the insights from financial statement audits received attention recently. See how much you know with this short quiz.