IASB Issues IFRS 20 Regulatory Assets and Regulatory Liabilities

Posted 10 June 2026 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The International Accounting Standards Board (IASB) has issued IFRS 20 Regulatory Assets and Regulatory Liabilities, a new accounting standard that replaces IFRS 14 Regulatory Deferral Accounts and supplements IFRS 15 Revenue from Contracts with Customers.

The new standard applies to entities subject to rate regulation where a regulatory agreement determines how much and when the entity can charge customers for goods or services. This typically impacts entities in the utility, energy, water, gas, and transportation sectors.

Under IFRS 20, companies must account for the financial effects of “differences in timing.” These differences arise when there is a mismatch between the period in which an entity supplies regulatory goods or services and the period in which it is permitted to charge customers for those goods or services. By requiring the recognition of regulatory assets and regulatory liabilities, the standard aims to ensure that reported revenue more accurately reflects performance during the period.

The standard is effective for annual reporting periods beginning on or after 1 January 2029, with early application permitted.

Click here to download the 70-page IFRS 20 Accounting Standard.

What this means for you, your business, or your clients

  • For yourself: Update your technical knowledge of international financial reporting standards, specifically regarding the recognition and measurement of regulatory assets and liabilities under IFRS 20.
  • For your business: Audit and accounting firms must update their audit methodologies, disclosure checklists, and training programs to prepare for the transition from IFRS 14 to IFRS 20 ahead of the 2029 effective date.
  • For your clients: Clients in rate-regulated sectors (such as municipal utilities, energy distributors, and transport operators) must assess their regulatory agreements, quantify timing differences, and plan for the systems changes required to track and report regulatory assets and liabilities.

Originally published at https://accountingacademy.co.za/news/read/iasb-new-ifrs-20-regulatory-assets-and-regulatory-liabilities

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