Regulatory deferral account and Related party: Difference between pages

Revision as of 11:55, 6 November 2015

Related parties are companies or other entities under common control.

Relevant accounting standards include Section 33 of FRS 102.

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-The balance of any expense (or income) account that would not be recognised as an asset or a liability in accordance with Financial Standards, but qualifies for deferral because it is included, or is expected to be included, by a rate regulator in establishing the rate(s) that can be charged to customers
+Related parties are companies or other entities under common control.
-Rate regulations allow the supplier to recover specified costs and other amounts through the prices charged to customers. To protect the interests of customers, rate regulation may defer the recovery of these amounts in order to reduce price volatility.
-The supplier usually keeps track of these deferred amounts in separate regulatory deferral accounts until they are recovered through future sales of the regulated goods or services.
+Relevant accounting standards include Section 33 of FRS 102.
-==See also==
+== See also ==
-* [[Rate regulation]]
+*[[FRS 102]]
-* [[IFRS 14]]
+*[[Transfer pricing]]
+*[[Unrelated party]]