Draft Electricity Distribution (Accounting aspects of Specified Items & Additional Disclosures), Rules, 2023
The Ministry of Power (MoP) has issued draft Electricity Distribution (Accounting aspects of Specified Items & Additional Disclosures), Rules, 2023. The rules shall be applicable to specified entity (SE). SEs which are presently recognising regulatory deferral account balances in accordance with applicable accounting standard and guidance note on accounting for rate regulated activities in its financial statements shall abide by the directions with respect to measurement and impairment of regulatory deferral account balances. On initial recognition and at the end of each subsequent reporting period, an entity should measure a regulatory asset or regulatory liability at the best estimate of the amount expected to be recovered or refunded or adjusted as future cash flows under the regulatory framework. In addition, an entity should review the estimates of the amount expected to be recovered, refunded or adjusted at least at the end of each financial year to reflect the current best estimate. Further, SEs shall disclose the basis on which regulatory deferral account balances are measured initially and subsequently, including how regulatory deferral account balances are assessed for recoverability and how impairment loss is allocated.
