Document ID: chunk:federal_register_of_legislation:F2022C00487:reg:36:p10
Version: federal_register_of_legislation:F2022C00487
Segment Type: reg
Provision Reference: reg 36 (pt 10/12)
Character Range: 49679–52758

of AASB 14.
C1 An entity shall apply this Standard if its first annual IFRS financial statements are for a period beginning on or after 1 January 2016. Earlier application is permitted. If an entity applies this Standard in its first annual IFRS financial statements for an earlier period, it shall disclose that fact.

Basis for Conclusions
This Basis for Conclusions accompanies, but is not part of, AASB 14.

Background
BC1               This Basis for Conclusions summarises the Australian Accounting Standards Board's (AASB) considerations in issuing AASB 14 Regulatory Deferral Accounts.  Individual Board members gave greater weight to some factors than to others.

Background
BC2               AASB 14 is the result of the AASB's due process, which began when the AASB issued Exposure Draft ED 240 Regulatory Deferral Accounts (AASB ED 240) in May 2013 (incorporating International Accounting Standards Board [IASB] ED/2013/5 Regulatory Deferral Accounts). That Exposure Draft proposed an interim Standard to permit first-time adopters of Australian Accounting Standards [International Financial Reporting Standards (IFRS)] to continue to account for regulatory deferral account balances in their financial statements in accordance with their previous GAAP. The proposed interim standard was not intended, in any way, to anticipate the outcome of the IASB's longer term Rate-regulated Activities project.
BC3               In the Preface to ED 240, the AASB expressed the view that it did not expect the proposed interim standard, if it were to be incorporated into Australian Accounting Standards, would have a significant impact on entities in Australia as the Standard could conceivably only affect entities that adopt Australian Accounting Standards for the first time and have recognised regulatory deferral account balances under their previous GAAP.
BC4                The AASB received two comment letters on ED 240, which expressed broad support for issuing the interim standard, acknowledging that it would be an interim measure while the IASB develops a Discussion Paper under its comprehensive Rate-regulated Activities project. One respondent expressed the view that they were not aware of any entities in Australia whose financial statements would be directly impacted by the proposals in ED 240.
BC5               In its comment letter to the IASB on ED/2013/5, the AASB raised the following key concerns:

          (a) the proposals could result in the IASB inappropriately setting a precedent of introducing additional interim standards for first-time adopters of IFRS to encourage transition to IFRS; and

          (b) the proposals would reduce comparability between first-time adopters of IFRS that choose to apply the proposals and those that already apply IFRS or first-time adopters of IFRS that do not elect to apply the proposals.
BC6               In January 2014, the IASB issued IFRS 14 Regulatory Deferral Accounts (incorporating the proposals in ED/2013/5 without substantive changes) for annual reporting periods beginning on or after 1