PFRS 14

REGULATORY
DEFERRAL ACCOUNTS
PFRS 14
PFRS 14 Reporters

Group Members

GROUP 5

DYLAN FRANCES F. DELA TRIXIE M.

PAZ AMARO
 PFRS 14 Reporters Introduction

REGULATORY DEFERRAL ACCOUNTS

Introduction
PFRS 14 specifies the financial
reporting requirements for
regulatory deferral account
balances arising from the sale of
goods or services that are subject
to rate regulation.
 PFRS 14 Reporters Introduction

REGULATORY DEFERRAL ACCOUNTS

INTRODUCTION
Regulatory Deferral Account
Rate Regulation Objectives
Balance

"the balance of any expense account that
would not be recognized as an asset or a
liability in accordance with other
Standards, but that qualifies for deferral
because it is included or is expected to
be included by the rate regulator in
establishing the rate than can be
changed to customers".
"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".
"an authorized body that is
empowered by statue or
regulation to establish the rate
or a range of rates that bind and
entity".
PFRS 14 Reporters Introduction Scope

REGULATORY DEFERRAL ACCOUNTS

SCOPE
PFRS 14 is optional standard that is available only to
first-time adopters. Existing PFRS users are prohibited
from using PFRS 14.

PFRS 14 is intended to provide first-time adopters

temporary relief from derecognizing rate-regulated assets
and liabilities that the first-time adopter has recognized
under its previous GAAP pending IASB's final decision
on rate-regulated activities.

An entity is allowed to apply PFRS 14 in subsequent

periods only if it has applied PFRS 14 in its first PFRS
financial statements.
PFRS 14 Reporters Introduction Scope Summary of Principles

REGULATORY DEFERRAL ACCOUNTS

SUMMARY OF
PRINCIPLES
UNDER PFRS 14
 PFRS 14 Reporters Introduction Scope Summary of Principles

REGULATORY DEFERRAL ACCOUNTS

Continuation of existing Changes in accounting policy

accounting policy
An entity shall not change its accounting policies in
On initial application of this Standard, an
order to start to recognise regulatory deferral account
entity shall continue to apply its previous
balances. An entity may only change its accounting
GAAP accounting policies for the
policies for the recognition, measurement, impairment
recognition, measurement, impairment and
and derecognition of regulatory deferral account
derecognition of regulatory deferral
balances if the change makes the financial statements
account balances, except for any changes
more relevant to the economic decision-making needs of
in accounting policies and the presentation
users and no less reliable1, or more reliable and no less
of regulatory deferral accounts.
relevant to those needs. An entity shall judge relevance
and reliability using the criteria in PAS 8.
 PFRS 14 Reporters Introduction
REGULATORY DEFERRAL ACCOUNTS
Interaction with other
Standards
Any specific exception, exemption or
additional requirements related to the
interaction of this Standard with other
Standards are contained within this Standard.
In the absence of any such exception,
exemption or additional requirements, other
Standards shall apply to regulatory deferral
account balances in the same way as they
apply to assets, liabilities, income and
expenses that are recognised in accordance
with other Standards.
Scope Summary of Principles
Changes in presentation
When this Standard is applied, the regulatory
deferral account balances are recognised in the
statement of financial position in addition to the
assets and liabilities that are recognised in
accordance with other Standards. These
presentation requirements separate the impact
of recognising regulatory deferral account
balances from the financial reporting
requirements of other Standards.
 Summary of
PFRS 14 Reporters Introduction Scope End
Principles

REGULATORY DEFERRAL ACCOUNTS

THANK YOU
FOR
LISTENING!