Update: Adoption of IFRS by entities with rate-regulated activities
Following its meeting on March 20-21, 2012, the Canadian Accounting Standards Board (AcSB) will extend the deferral of the mandatory IFRS changeover date for entities with qualifying rate-regulated activities by one year to January 1, 2013, based on the possibility that the International Accounting Standards Board (IASB) may include rate-regulated activities to its future agenda. This will allow the AcSB to take any appropriate action, should the IASB comment on this subject in the following months.
The AcSB expects to issue the amendment to the Introduction to Part I of the Handbook in May 2012. Please note that entities with rate-regulated activities may still apply IFRS accounting in 2012, if they choose to.
The AcSB had originally proposed an optional two-year deferral (January 1, 2013) of the mandatory date to apply IFRS accounting, in its July 2010 Exposure Draft. It was ultimately decided, however, to limit the deferral to only one year (January 1, 2012).