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New IFRS 20: Accounting Standard on regulatory assets and regulatory liabilities
- 21 April 2026
- Accounting
- South African Accounting Academy
Summary:
The IFRS Foundation has released information about the upcoming IFRS 20, a new accounting standard on regulatory assets and regulatory liabilities.
Article:
This new forthcoming standard is expected to mainly affect companies in industries such as utilities, energy, and transportation.
It will replace IFRS 14 Regulatory Deferral Accounts.
IFRS 20 helps to fill a gap in financial reporting. It requires a company subject to a specific type of rate regulation to provide information about its regulatory assets, regulatory liabilities, regulatory income and regulatory expense. This information will help investors to understand specific effects of that regulation on a company’s financial performance and financial position.
IFRS 20 is expected to be issued in the second quarter of 2026 and will be effective for annual reporting periods beginning on or after 1 January 2029.
Access the webcast slides at https://www.ifrs.org/content/dam/ifrs/project/rate-regulated-activities/supporting-materials/rra-webcast-slides.pdf
Click here to watch the webcast:
https://www.ifrs.org/projects/work-plan/rate-regulated-activities/webcast-overview-ifrs-20/
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, 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, IFRS Foundations, etc.