IFRS 14 - Regulatory Deferral Accounts
Financial Dictionary — IFRS & IAS Standards
Definition
IFRS 14 permits entities that apply rate regulation to continue recognizing regulatory deferral account balances when they adopt IFRS for the first time, with specific presentation and disclosure requirements.
Use cases, Example & Why it matters
Use cases
- Used when applying IFRS/IAS requirements for recognition, measurement, presentation, or disclosure.
- Used to justify accounting treatments in working papers and financial statement notes.
- Used to justify accounting treatments in working papers and financial statement notes.
Example
- Example: When preparing year-end reporting, management applies **IFRS 14 - Regulatory Deferral Accounts** to determine the correct IFRS treatment and disclosures.
Why it matters
- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.