An official professional translation of IFRS 20 has not yet been prepared. The translation used here should not be regarded as an official translation.
What problem does IFRS 20 address?
How does IFRS 20 address the problem?
What information does the entity provide (under IFRS 20)?
Compensation for regulatory goods or services supplied:
Regulatory assets and regulatory liabilities
A right to add amounts to, or an obligation to deduct amounts from, future regulated rates. That right or obligation arises from differences in timing.
How does the entity provide this information
(under IFRS 20)?
| Year 1 | |
|---|---|
| IFRS 15 revenue | 120 |
| Regulatory income (regulatory expense) | 70 |
| Revenue | 190 |
Statement of financial position:
- Current and non-current regulatory assets
- Current and non-current regulatory liabilities
¹ The recognition of certain regulatory assets and regulatory liabilities is subject to the fulfilment of specified conditions.
An official professional translation of IFRS 20 has not yet been prepared. The translation used here should not be regarded as an official translation.
Key questions to consider
- Is our company within the scope of IFRS 20?
- Is a regulatory asset or regulatory liability eligible for recognition?
- How should we develop the methodology and processes for estimating cash flows and updating those estimates?
- At what interest rate should the estimated cash flows be discounted (for example, if no specific regulatory interest rate is identified)?
- How should we design the quantitative disclosures required by IFRS 20 and the processes that support the underlying data?
- How do the assets, liabilities, income and expenses potentially recognised under IFRS 20 affect systems outside accounting (e.g. controlling)?
- How should we communicate the impacts of IFRS 20 to the company’s stakeholders?
Our accounting advisory colleagues experienced in IFRS implementation, with the involvement of our energy market experts where necessary, can support the transition and the related and additional tasks arising from the above topics.
