BDO submits comment letter to IASB on Exposure Draft 2021/1 Regulatory Assets and Regulatory Liabilities

BDO has submitted a comment letter to the IASB on Exposure Draft 2021/1 Regulatory Assets and Regulatory Liabilities.

The Exposure Draft deals with a proposed new standard intended to replace IFRS 14 Regulatory Deferral Accounts. The ED proposes that the ‘total allowed compensation’ to which an entity conducting rate regulated activities is entitled for the goods and services supplied in a period should be reflected in the financial performance in the same period. This would be achieved by recognising regulatory assets and regulatory liabilities in the statement of financial position and regulatory income and regulatory expense in the statement of financial performance.

BDO’s full comment letter may be accessed here.