A new Standard for rate-regulated activities
The issuance of IFRS 20 Regulatory Assets and Regulatory Liabilities by the International Accounting Standards Board on 26 May 2026, marks an important development for entities operating in rate-regulated industries. The Standard applies to annual reporting periods beginning on or after 1 January 2029, with earlier application permitted.
IFRS 20 introduces specific requirements for recognising and measuring regulatory assets and regulatory liabilities. These arise when a rate regulator determines the amount an entity can charge customers for goods or services, and where that amount creates rights to recover costs or obligations to reduce future rates.
