Ind AS 114, Regulatory Deferral Accounts | Objectives | Scope

Ind AS 114, Regulatory Deferral Accounts: The goal of Ind AS 114 is to specify the financial reporting requirements for regulatory deferral account balances that develop when an entity provides items or services to consumers at a price or rate that is subject to rate policy

An entity is permitted to use the requirements of this Standard in its very first Ind AS monetary declarations, if and just if, it:

• conducts rate-regulated activities; and
• identified quantities that qualify as regulatory deferral account balances in its financial declarations in accordance with its previous GAAP.

Ind AS 114

An entity shall use the requirements of the Standard in its financial declarations for subsequent durations, if and just if, in its first Ind AS financial declarations, it acknowledged regulatory deferment account balances by choosing to use the requirements of this Standard.

Entity that is within the scope of, which elects to use, this Basic shall apply all of its requirements to all regulative deferral account balances that arise from all of the entity’s rate-regulated activities.

An entity that has rate-regulated activities and that is within the scope of, and elects to apply, this Basic shall use paragraphs 10 and 12 of Ind AS 8 when establishing its accounting policies for the acknowledgment, measurement, impairment and derecognition of regulatory deferral account balances.

Application

On preliminary application of this Standard, an entity shall continue to apply previous GAAP accounting policies for the recognition, measurement, impairment and derecognition of regulatory deferral account balances, except for any changes allowed by paragraphs 13–15 of the Standard. However, the presentation of such amounts will adhere to the

presentation requirements of this Requirement, which may require changes to the entity’s previous GAAP discussion policies.

An entity shall not alter its accounting policies in order to begin to recognise regulatory deferral account balances. An entity may just change its accounting policies for the acknowledgment, measurement, impairment and derecognition of regulatory deferral account balances, if the modification makes the monetary declarations more appropriate to the economic decision-making requirements of users and no less trustworthy, or more reliable and no less relevant to those requirements. entity shall judge significance and reliability using the criteria in paragraph 10 of Ind AS 8.

Exemption

Any specific exception, exemption or additional requirements related to the interaction of the Requirement with other Standards are contained within the Standard. In the lack of any such exception, exemption or extra requirements, other Standards will apply to regulatory deferral account balances in the same way as they apply to assets, liabilities, earnings and expenses that are acknowledged in accordance with other Standards.

An entity shall present separate line items in the balance sheet for:

• the overall of all regulatory deferment account debit balances; and
• the overall of all regulatory deferment account credit

An entity that elects to use this Basic will divulge info that enables users to evaluate:

• the nature of, and the dangers related to, the rate guideline that establishes the cost( s) that the entity can charge customers for the items or services it supplies; and
• the results of that rate policy on its monetary position, monetary performance and money

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