As required by the Canadian Accounting Standards Board, as publicly accountable enterprises, most utilities regulated by the Board will transition to IFRS for financial reporting effective January 1, 2012. The adoption of IFRS changes the manner in which utilities perform their accounting and the reporting of financial results, and creates impacts on regulated rates and charges.
Beginning in December, 2008, the Board initiated a series of consultations to develop policy and provide guidance regarding the transition to IFRS.
The first phase of this consultation culminated with the issuance of Report of the Board, Transition to IFRS, on July 28, 2009 (and amended November 8, 2010 and March 15, 2011). The Board then undertook a depreciation study to assist electricity distributors with the transition to IFRS, with a final report issued by Kinetrics Inc. on July 8, 2010. In addition, the Board issued an Addendum to Report of the Board: Implementing International Financial Reporting Standards in an Incentive Rate Mechanism Environment on June 13, 2011. The Addendum sets out regulatory policy for the transition to IFRS for utility rates rebased using a cost of service methodology and subsequently set using an incentive rate-setting mechanism.
Revisions to the Accounting Procedures Handbook for Electricity Distributors EB-2011-0428
Accounting Procedures Handbook for Electricity Distributors
- Cover letter (March 28, 2012)
- Accounting Procedures Handbook for Electricity Distributors
- Track Changes to Revised Draft APH December 2011
- Coalition of Large Distributors
- Electricity Distributors Association
- Hydro One Networks Inc.
- Orillia Power Distribution Corporation
- School Energy Coalition
- Toronto Hydro-Electric System Limited
The Board has posted for comment a revised Accounting Procedures Handbook for Electricity Distributors. Many of the proposed revisions were undertaken to recognize the transition to International Financial Reporting Standards (IFRS).
IFRS - IRM Consultation and Addendum to Report of the Board, EB-2008-0408
Addendum to Report of the Board
- Cover letter - June 13, 2011
- Addendum to Report of the Board: Implementing International Financial Reporting Standards in an Incentive Rate Mechanism Environment - June 13, 2011
- Staff Discussion Paper: Transition to IFRS - Implementation in an IRM Environment - March 31, 2011
- Comment Letters – May 5, 2011
IFRS IRM Working Group
- Letter to IFRS IRM Working Group Participants – December 15, 2010
- Board Staff Proposals for Discussion – Draft 1 - January 20, 2011
- Board Staff Proposals for Discussion - Draft 2 - February 18, 2011
- Board Staff Proposals for Discussion - Draft 3 - March 14, 2011
Depreciation Study for Electricity Distributors, EB-2010-0178
Final Report of Kinectrics Inc.
Period of Comment on Draft Report of Kinectrics Inc.
- Cover Letter - April 30, 2010
- Draft Report of Kinectrics Inc. - April 30, 2010
- Comment Letters - July 8, 2010
Policy Consultation and Report of the Board, EB-2008-0408
Board Report on Transition to IFRS
- Cover letter - July 28, 2009
- Report of the Board, Transition to International Financial Reporting Standards - July 28, 2009
- Clarification Letter - Accounting for Overhead Costs Associated with Capital Work - February 24, 2010
- Amendment to Appendix B to Report of the Board - November 8, 2010 to reflect Accounting Standards Board decision to permit delay in adopting IFRS to January 1, 2012
- Amendment to Section 9.1.2 to Report of the Board - March 15, 2011 with respect to the use of Modified IFRS as a basis for filing Cost of Service applications for 2012 rates
- Documents Filed in Preparation for Stakeholder Conference:
- Staff Proposal (posted April 24)
- Group of 8 Intervenors Proposals (posted April 28):
- Guiding Principles
- Proposed Regulatory Accounting Changes – Supporting Information
- Issues List for the Consultation
- KPMG Report:
- Cover Letter
- KPMG Report: Report on the Transition to International Financial Reporting Standards
- Questions from participants:
- Hydro One Networks Inc.