IASB: New! IFRS 20 Regulatory Assets and Regulatory Liabilities

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IASB: New! IFRS 20 Regulatory Assets and Regulatory Liabilities

• 10 June 2026
• Accounting
• South African Accounting Academy

Summary:

The International Accounting Standards Board (IASB) has issued IFRS 20 Regulatory Assets and Regulatory Liabilities, a new Accounting Standard for companies subject to a specific type of rate regulation. 

Article:

IFRS 20 aims to improve financial reporting for companies subject to rate regulation, i.e. companies in industries such as utilities, energy, and transportation. It also aims to help investors better understand how that rate regulation affects a company’s financial performance, financial position and its prospects for future cash flows.

IFRS 20 is also expected to reduce diversity in accounting practices and improve comparability between companies in regulated industries.

IFRS 20 is effective for annual reporting periods beginning on or after 1 January 2029. Companies may choose to apply the Standard earlier.

IFRS 20 supplements the information a company provides when applying IFRS 15 Revenue from Contracts with Customers and replaces IFRS 14 Regulatory Deferral Accounts.

The Standard will affect companies subject to rate regulation that determines how much a company can charge customers and when it can charge them. Companies that supply vital services such as electricity, water and gas are often subject to this type of regulation.

If there is a difference between when a company supplies regulatory goods and services and when it charges customers for those goods and services, reported revenue may not fully reflect the company’s performance in a period. IFRS 20 calls this a ‘difference in timing’. The new Standard requires companies to account for the effects of differences in timing in their financial statements. 

Access the following related documents:

• At a glance (1 page) https://www.ifrs.org/content/dam/ifrs/project/rate-regulated-activities/standard/iasb-ifrs20-one-page.pdf 
• Basis for Conclusions (85 pages) explains the IASB’s considerations in developing the requirements in IFRS 20 https://www.ifrs.org/content/dam/ifrs/publications/amendments/english/2026/iasb-ifrs20-bc.pdf 
• Illustrative Examples (84 pages) show how the requirements apply in practice https://www.ifrs.org/content/dam/ifrs/publications/amendments/english/2026/iasb-ifrs20-ie.pdf 

Refer to our previous Alert on the ED dated 21 April 2026

Click here to download the 70-page Accounting Standard:

https://www.ifrs.org/bin/oauth-redirect.html/content/dam/ifrs/publications/amendments/english/2026/iasb-ifrs20.pdf 

Relevance to Auditors, Independent Reviewers & Accountants:

• As an auditor and independent reviewer, you need evaluate adherence with the relevant financial reporting framework, and thus you need knowledge of new and upcoming standards that are approved as well as when they become effective.
• Failure to adhere to IFRs accounting standards may lead to misrepresentation in the financial statements.
• As an auditor, compiler and independent reviewer, you should be aware of new standards and publications (like guidance and support materials) issued by the standard-setting bodies, e.g. the IAASB, IASB, IFRS Foundations, etc.

Relevance to Your clients:

• Compilers of financial statements should be aware of new standards and publications (like guidance and support materials) issued by the standard-setting bodies, e.g. the IAASB, IASB, IFRS Foundations, etc.

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