This summary of Accounting Standards Board (AcSB) decisions has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussion on projects, which may change after further deliberations by the AcSB. Decisions to publish Handbook material are final only after a formal ballot process.
For more detailed information on AcSB projects, including the decisions summarized below, please refer to the project summaries under Projects, which will be updated within the month following an AcSB meeting. |
- Rate-regulated Activities
The AcSB discussed the IASB’s deliberations of July 20 and 22, 2010 on rate-regulated activities. The AcSB noted the IASB’s decisions to continue with its project addressing the recognition, measurement and disclosure of regulatory assets and regulatory liabilities and not to develop transitional guidance for use by first-time adopters in the meantime. The AcSB decided to propose that qualifying entities with rate-regulated activities be permitted, but not required, to continue applying the accounting standards in Part V of the CICA Handbook – Accounting for an additional two years. A qualifying entity would be an entity that: - has activities subject to rate regulation meeting the definition of that term in Generally Accepted Accounting Principles, paragraph 1100.32B, in Part V of the Handbook; and
- in accordance with Accounting Guideline AcG-19, Disclosures by Entities Subject to Rate Regulation, discloses that it has accounted for a transaction or event differently than it would have in the absence of rate regulation (i.e., that it has recognized regulatory assets and regulatory liabilities).
Entities choosing to defer their IFRS changeover date would be required to disclose that fact, and when they will first present financial statements in accordance with IFRSs. The AcSB expects to issue an exposure draft by the end of this month. |
