IFRS 14 – Regulatory Deferral Accounts – Theory – 3

Which of the following shall an entity disclose, when it provides disclosures in accordance with IFRS 12 Disclosure of Interests in Other Entities for an interest in a subsidiary, associate or joint venture that has rate-regulated activities and for which regulatory deferral account balances are recognised in accordance with IFRS 14?

When an entity concludes that a regulatory deferral account balance is fully recoverable or reversible, it shall disclose that fact, the reason why it is recoverable or reversible and the amount by which the regulatory deferral account balance has been reduced.

Which of the following terms agrees with the definition: ‘A framework for establishing the prices that can be charged to customers for goods or services and that framework is subject to oversight and/or approval by a rate regulator’?

__________ regulator is an authorised body that is empowered by statute or regulation to establish the rate or a range of rates that __________ an entity.

Which of the following cannot be a rate regulator?

Which of the following IFRS 14 applies to?

The following are examples of the types of costs that rate regulators might allow in rate-setting decisions and that an entity might, therefore, recognise in regulatory deferral account balances?

Regulatory deferral account balances usually do not represent timing differences between the recognition of items of income or expenses for regulatory purposes and the recognition of those items for financial reporting purposes.