The International Accounting Standards Board (IASB) has issued IFRS 20, Regulatory Assets and Regulatory Liabilities, introducing a comprehensive accounting framework for entities operating in rate-regulated environments. The Standard replaces IFRS 14 and is effective for reporting periods beginning on or after 1 January 2029, with early adoption permitted.

It is particularly relevant for sectors such as utilities, energy, transport, and infrastructure, where regulators determine both the prices entities can charge and the timing of cost recovery. A key issue addressed by IFRS 20 is the ‘difference in timing’ between when goods or services are supplied and when amounts are recovered through regulated tariffs. Under existing IFRS requirements, this mismatch can result in reported revenue that does not fully reflect economic performance. IFRS 20 addresses this by requiring recognition of regulatory assets and regulatory liabilities arising from such timing differences. Importantly, unlike IFRS 14, the Standard is mandatory for all entities within its scope.