|
Accounting Standards Board
Decision Summary
July 27, 2006
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, please refer to the project summaries under Projects, which will be updated within the month following an AcSB meeting. |
Rate-Regulated Operations
The AcSB considered the implications for certain entities of removing all recognition and measurement
guidance in the Handbook specific to rate-regulated operations, including the definition of a rate-regulated
enterprise. The AcSB observed that this proposal, if adopted, would result in entities no longer being able
to rely on the current Handbook definition. This definition is less restrictive than the one in FASB
Statement of Financial Accounting Standards No. 71, Accounting for the Effects of Certain Types of
Regulation (FAS 71), most notably regarding the requirement for an independent, third party regulator.
The AcSB also observed that this could be a particular concern for certain public sector entities.
The AcSB decided to continue with its proposal. The AcSB noted that any entity choosing to rely on FAS 71 in
accordance with the provisions of Section 1100, Generally Accepted Accounting Principles, must also
apply the definition of a rate-regulated enterprise in FAS 71. The AcSB considered and rejected including a
definition in the Handbook that differs from the one in FAS 71.
|
