| In addition, the entity has decided to present separately the deferred tax asset balance that relates to the recognition of regulatory deferral account balances that are expected to be recovered (reversed) through future rates by presenting additional line items for the deferred tax asset balance and the movement in it, as permitted by paragraphs 24 and B11–B12.
XYZ Group—Statement of financial position as at 31 December 20X7 (extract)(in currency units)
|
---|
| 31 Dec 20X7 | | 31 Dec 20X6 |
---|
ASSETS | | | | Non-current assets | | | | AAA | x | | x | | 888,910 | | 935,920 | Current assets | | | | BBB | x | | x | | x | | x | Disposal group assets | 15,200 | | – | | 464,640 | | 476,410 | Total assets | 1,353,550 | | 1,412,330 | Regulatory deferral account debit balances directly related to disposal group | 9,800 | | – | Other regulatory deferral account debit balances | 90,440 | | 102,330 | Deferred tax asset associated with regulatory deferral account balances | 12,710 | | 9,540 | Total assets and regulatory deferral account debit balances | 1,466,500 | | 1,524,200 | | | | |
XYZ Group—Statement of financial position as at 31 December 20X7 (extract)(in currency units)
|
---|
| 31 Dec 20X7 | | 31 Dec 20X6 |
---|
EQUITY AND LIABILITIES | | | | Equity attributable to owners of the parent | x | | x | Non-controlling interests | x | | x | Total equity | 973,750 | | 831,500 | Non-current liabilities | | | | DDD | x | | x | | 177,650 | | 238,280 | Current liabilities | | | | EEE | x | | x | | x | | x | Disposal group liabilities | 2,540 | | – | | 217,140 | | 377,950 | Total liabilities | 394,790 | | 616,230 | Total equity and liabilities | 1,368,540 | | 1,447,730 | Regulatory deferral account credit balances directly related to disposal group | 17,460 | | – | Other regulatory deferral account credit balances | 80,500 | | 76,470 | Total equity, liabilities and regulatory deferral account credit balances | 1,466,500 | | 1,524,200 | | | | | Note: regulatory deferral account balances are not described as assets or liabilities for the purposes of this Standard. The sub-totals described as “Total assets” and “Total liabilities” are comparable to those that would be presented if the regulatory deferral account balances were not recognised. The difference between these two sub-totals represents the net balance of all regulatory deferral account balances recognised and any related deferred tax asset (liability) that arises as a result of recognising regulatory deferral account balances, which would otherwise be recognised within retained earnings or other components of equity. |
XYZ Group—Statement of profit or loss and other comprehensive income for the year ended 31 December 20X7 (extract)(illustrating the presentation of profit or loss and other comprehensive income in one statement) (in currency units)
|
---|
| 20X7 | | 20X6 |
---|
Revenue | 390,000 | | 358,784 | FFF | x | | x | Profit before tax | 196,685 | | 106,204 | Income tax expense | (43,587) | | (44,320) | Profit for the year from continuing operations | 153,098 | | 61,884 | Loss for the year from discontinued operations | (3,500) | | – | Profit for the year before net movements in regulatory deferral account balances | 149,598 | | 61,884 | Net movement in regulatory deferral account balances related to profit or loss | (30,720) | | (9,127) | Net movement in the deferred tax asset arising from regulatory deferral account balances related to profit or loss | 3,170 | | 12,320 | Profit for the year and net movements in regulatory deferral account balances | 122,048 | | 65,077 | Other comprehensive income: Items that will not be reclassified to profit or loss | | | | Remeasurement of defined benefit pension plans | (7,938) | | (3,784) | Net movement in regulatory deferral account balances related to other comprehensive income | 7,140 | | 4,207 | Other comprehensive income for the year, net of income tax | (798) | | 423 | TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 121,250 | | 65,500 | | | | |
Regulatory deferral account balances | Regulatory deferral account debit balances | 20X6 | Balances arising in the period | Recovery/reversal | Other movements | 20X7 | Remaining recovery/reversal period (years) | Electricity distribution | Construction costs | 18,720 | 5,440 | (80) | – | 24,080 | 4–10 | Storm damage | 64,410 | – | (12,060) | (9,800) | 42,550 | 4 | Other regulatory balances | 6,270 | 2,320 | (950) | – | 7,640 | 4–10 | Gas distribution | Pension costs | 5,130 | 10,120 | (2,980) | – | 12,270 | N/A | Gas cost variances | 7,800 | – | (3,900) | – | 3,900 | 1 | | 102,330 | 17,880 | (19,970) | (9,800) | 90,440 | | Disposal group | – | – | – | 9,800 | 9,800 | | | 102,330 | 17,880 | (19,970) | – | 100,240 | | Regulatory deferral account credit balances | | | | | | | Electricity distribution | Land disposal | – | 19,000 | – | – | 19,000 | 10 | Income tax | 6,360 | 3,207 | (1,093) | – | 8,474 | 1–10 | Gas distribution | Gas cost variances | 600 | 4,000 | (200) | – | 4,400 | 2–3 | Income tax | 3,180 | 1,603 | (547) | – | 4,236 | 1–10 | Decommissioning costs | 66,330 | (2,030) | (2,450) | (17,460) | 44,390 | 3–20 | | 76,470 | 25,780 | (4,290) | (17,460) | 80,500 | | Disposal group | – | – | – | 17,460 | 17,460 | | | 76,470 | 25,780 | (4,290) | – | 97,960 | | | [Refer:paragraph 33(a)] |
Notes: | (1) | The net movement in the pension costs regulatory deferral account balance of CU7,140 (CU12,270 – CU5,130) relates to the remeasurement of the defined benefit pension plan, which is presented in other comprehensive income in accordance with IAS 19 Employee Benefits. In accordance with paragraph 22 of this Standard, the related movement in the regulatory deferral account balance is also presented in other comprehensive income. | (2) | The recovery from, or refund to, customers of future income taxes through future rates is recognised as a regulatory deferral account balance. The company has recognised a deferred tax asset of CU12,710 (20X6 – CU9,540) arising from the recognition of regulatory deferral account balances and a corresponding regulatory deferral account credit balance of CU12,710 (20X6 – CU9,540). The deferred tax asset balance is presented separately alongside the total of regulatory deferral account debit balances in the statement of financial position. [Refer:paragraph 24 and Appendix B paragraph B11(b)] Similarly, the net movement in the deferred tax asset related to the regulatory deferral account balances of CU3,170 [CU(8,474 - 6,360) + CU(4,236 – 3,180)] is presented separately in the statement of profit or loss. [Refer:paragraph 24 and Appendix B paragraph B12(b)] | (3) | The net movement of CU30,720 in the remaining regulatory deferral account balances is presented in the profit or loss section of the statement of profit or loss and other comprehensive income. [Refer:paragraph 23] This remaining net movement consists of: | | | Decrease in regulatory deferral account debit balances(CU100,240 – CU102,330) | (2,090) | | | | Less: increase in pension cost regulatory deferral account debit balance presented in other comprehensive income(CU12,270 – CU5,130) | (7,140) | | | | | (9,230) | | | | Increase in regulatory deferral account credit balances(CU97,960 – CU76,470) | (21,490) | | | | Net movement in regulatory deferral account balances presented in profit or loss | (30,720) | | (4) | In this example, the other movements represent transfers to the disposal group and have been shown separately in accordance with paragraph 33(a)(iii). If there are other movements that require separate disclosure, such as those caused by impairments or the effects of changes in foreign exchange rates or discount rates, these could be shown in a separate column or another method of disclosure, such as a footnote to the table. |
Increase (decrease) through transfers to disposal groups, regulatory deferral account credit balances Example | MonetaryDuration, Credit | IFRS 14.33 a (iii) Example | 824500 | Increase (decrease) through transfers to disposal groups, regulatory deferral account debit balances Example | MonetaryDuration, Debit | IFRS 14.33 a (iii) Example | 824500 | Other regulatory deferral account credit balances Example | MonetaryInstant, Credit | IFRS 14.25 Example | 824500 | Other regulatory deferral account debit balances Example | MonetaryInstant, Debit | IFRS 14.25 Example | 824500 | Net movement in other regulatory deferral account balances related to profit or loss Common practice | MonetaryDuration, Credit | IFRS 14.25 Common practice | 824500 |
|