WG 68 Rate-regulated Activities

Chairman: Mr New Kheng Chee; Project Manager: Mr. Irvin Menezes

WG 68 was set up to review IASB's Exposure Draft on Rate-regulated Activities. Rate regulation is a restriction in the setting of prices that can be charged to customers for services or products. Generally, it is imposed by regulatory bodies or governments when an entity has a monopoly or a dominant market position that gives it excessive market power. In December 2008, the IASB added a project on rate-regulated activities to its agenda. The project objective is to develop a standard on rate regulated activities that clarifies whether regulated entities could or should recognise an asset or a liability as a result of rate regulation. Rate regulation is widespread and significantly affects the economic environment of rate-regulated entities. Clarifying the treatment of assets and liabilities arising from rate regulation in IFRSs is therefore important.