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22 October 2009

EFRAG issues its draft comment letter to IASB on Rate-regulated Activities


EFRAG acknowledges and supports the IASB's objective of eliminating divergence in practice on the accounting for rate-regulated activities, and to some extent achieve closer convergence with the accounting under US GAAP.

EFRAG acknowledges and supports the IASB's objective of eliminating divergence in practice on the accounting for rate-regulated activities, and to some extent achieve closer convergence with the accounting under US GAAP. However, EFRAG has a number of significant concerns with the proposals, in particular:

- EFRAG members hold different views on whether the economic effects of rate-regulation give rise to assets and liabilities as defined in the Framework, although the majority of EFRAG members believe that they do.

- Some EFRAG members do not see a need for a stand-alone IFRS on rate-regulated activities.

- EFRAG members have some concerns with the scope criterion proposed in paragraph 3(b) of the ED.

- EFRAG does not support the proposed removal of the recognition criteria as well as the proposed expected present value measurement approach.

Press release

 



© EFRAG - European Financial Reporting Advisory Group


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