Document ID: chunk:federal_register_of_legislation:F2022C00487:reg:36:p1
Version: federal_register_of_legislation:F2022C00487
Segment Type: reg
Provision Reference: reg 36 (pt 1/12)
Character Range: 24820–28015

36                    When an entity concludes that a regulatory deferral account balance is no longer fully recoverable or reversible, it shall disclose that fact, the reason why it is not recoverable or reversible and the amount by which the regulatory deferral account balance has been reduced.

Appendix A
Defined terms
This appendix is an integral part of AASB 14.
First Australian-Accounting-Standards financial statements  The first annual financial statements in which an entity adopts Australian Accounting Standards, by an explicit and unreserved statement of compliance with Australian Accounting Standards.
First-time adopter                                          An entity that presents its first Australian-Accounting-Standards financial statements.
Previous GAAP                                               The basis of accounting that a first-time adopter used immediately before adopting Australian Accounting Standards.
Rate-regulated activities                                   An entity's activities that are subject to rate regulation.
Rate regulation                                             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.
Rate regulator                                              An authorised body that is empowered by statute or regulation to establish the rate or a range of rates that bind an entity. The rate regulator may be a third-party body or a related party of the entity, including the entity's own governing board, if that body is required by statute or regulation to set rates both in the interest of the customers and to ensure the overall financial viability of the entity.
Regulatory deferral account balance                         The balance of any expense (or income) account that would not be recognised 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(s) that can be charged to customers.

Appendix B
Application guidance
This appendix is an integral part of AASB 14.

Rate-regulated activities
B1 Historically, rate regulation applied to all activities of an entity. However, with acquisitions, diversification and deregulation, rate regulation may now apply to only a portion of an entity's activities, resulting in it having both regulated and non-regulated activities. This Standard applies only to the rate-regulated activities that are subject to statutory or regulatory restrictions through the actions of a rate regulator, regardless of the type of entity or the industry to which it belongs.
B2 An entity shall not apply this Standard to activities that are self-regulated, ie activities that are not subject to a pricing framework that is overseen and/or approved by a rate regulator. This does not prevent the entity from being eligible to apply this Standard when:
(a)                    the entity's own governing body or a related party establishes rates both in the interest of the customers and to ensure the overall financial