EFRAG’s Financial Reporting Board (FRB) has requested that the International Accounting Standards Board (IASB) defer the effective date of IFRS 20 Regulatory Assets and Regulatory Liabilities by one year.
The IASB is expected to issue IFRS 20 in the second quarter of this year. It is set to take effect – replacing IFRS 14 Regulatory Deferral Accounts – on 1 January 2029.
In a letter to IASB chair Andreas Barckow, EFRAG FRB chair Wolf Klinz requested that the effective date be pushed back to 1 January 2030 “to facilitate its effective implementation”.
Through its engagements with companies, EFRAG has identified challenges that companies will face in applying IFRS 20, particularly if they operate in multiple jurisdictions.
It notes that early adoption would still be possible if the effective date was deferred.