EY helps clients create long-term value for all stakeholders. Enabled by data and technology, our services and solutions provide trust through assurance and help clients transform, grow and operate.
At EY, our purpose is building a better working world. The insights and services we provide help to create long-term value for clients, people and society, and to build trust in the capital markets.
In this publication, we look at the requirements of IFRS 14 Regulatory Deferral Accounts, including some of the potential benefits and challenges for reporting entities.
On 30 January 2014, the International Accounting Standards Board (IASB or the Board) issued IFRS 14 Regulatory Deferral Accounts (the interim standard or IFRS 14) to ease the adoption of International Financial Reporting Standards (IFRS) for rate-regulated entities. The interim standard provides first-time adopters of IFRS with some relief from derecognising rate-regulated assets and liabilities until a comprehensive project on accounting for such assets and liabilities has been completed by the IASB. In this publication, we take a closer look at the requirements of IFRS 14, consider some of the potential benefits for reporting entities and explore some of the practical challenges in implementing it. We believe the insights and examples provided in this publication are particularly relevant for rate-regulated entities that are considering adopting IFRS for the first time.