IFRS 20 Regulatory Assets and Regulatory Liabilities will replace IFRS 14 and is expected to be issued in the second quarter of 2026, with an effective date of 1 January 2029 and early application permitted.
The standard applies mainly to rate‑regulated entities, particularly in the utilities, energy and transport sectors, and addresses timing mismatches between when regulated goods or services are supplied and when compensation is billed.
It requires entities to recognise regulatory assets for enforceable rights to increase future rates and regulatory liabilities for enforceable obligations to reduce future rates, measured using discounted estimated future cash flows at the regulatory interest rate.
IFRS 20 also introduces clearer presentation, with regulatory assets and liabilities shown separately on the statement of financial position and net regulatory income or expense presented as a distinct line item in profit or loss, improving transparency over financial performance and future cash flows.
9 March 2026
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