International Financial Reporting Standards (IFRS)

Case number
EB-2008-0408, EB-2008-0104
Launched
Sector
Electricity
Natural Gas
Status
Archived
Details

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

Stakeholder Letters

Consultation Documents

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

Consultation Documents

IFRS IRM Working Group

Depreciation Study for Electricity Distributors, EB-2010-0178

Final Report of Kinectrics Inc.

Period of Comment on Draft Report of Kinectrics Inc.

Policy Consultation and Report of the Board, EB-2008-0408

Board Report on Transition to IFRS

Stakeholder Conference

Consultation Documents

 

Updates
Updates
Date Issue / Document
April 30, 2012

The Board has issued a letter providing guidance for all electricity utilities regarding the impact of the decision by the Canadian Accounting Standards Board (the “AcSB”) to defer the mandatory changeover to International Financial Reporting Standards (“IFRS”) to January 1, 2013.
June 30, 2011

The Board has issued an Addendum to Report of the Board: Implementing International Financial Reporting Standards in an Incentive Rate Mechanism Environment. 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.
March 31, 2011

The Board has posted for comment a staff Discussion Paper on the Transition to IFRS – Implementation in an IRM Environment.
March 15, 2011

The Board has issued a letter further amending Section 9.1.2 of its Report on Transition to IFRS (originally issued Jul-28-09) to advise electricity distributors regarding the use of IFRS in filing cost of service applications for rates for 2012.
December 15, 2010

The Board has issued a letter that identifies the parties selected for the IFRS IRM Working Group.

The Board has issued a letter to IFRS IRM Working Group participants that describes the Working Group activities and timing of work as well as providing a draft issues list for consideration by the participants in the first Working Group meeting.
November 8, 2010

The Board has issued an amendment to its Report on Transition to IFRS (originally issued Jul 28-09) to reflect the Canadian Accounting Standards Board pronouncement allowing the option to delay transition to IFRS to January 1, 2012.
July 8, 2010

The Board has issued a depreciation study prepared by Kinectrics Inc. to assist electricity distributors in Ontario in their transition to International Financial Reporting Standards.
April 30, 2010

The Board has issued the draft report of Kinectrics Inc., Asset Amortization Study for the Ontario Energy Board, in relation to electricity distributors for comment to assist Kinectrics Inc. in finalizing their report.
February 24, 2010

The Board has issued a letter clarifying “Accounting for Overhead Costs Associated with Capital Work” to assist utilities with their transition to IFRS.
July 28, 2009

The Board has issued its report on Transition to International Financial Reporting Standards (IFRS) in recognition of the fact that Canadian Generally Accepted Accounting Principles will transition to IFRS applicable to most utilities regulated by the Board effective January 1, 2011
April 24, 2009

Board Staff has posted proposals for discussion, based on the issues list for the IFRS consultation. These proposals were generated from discussions between Board Staff and participants, and have not been approved by the Board.
March 5, 2009

The Board released a report from its consultants KPMG entitled “KPMG Report to the Ontario Energy Board: Report on the Transition to International Financial Reporting Standards”. The report provides independent analysis of the matters identified in the Issues List for the Board’s Consultation on IFRS, and highlights the major potential impacts of the transition to IFRS from the perspectives of ratepayers, regulated utilities and the ratemaking process.
January 23, 2009

Information Item: On January 19, 2009 the Canadian Association of Members of Public Utility Tribunals (“CAMPUT”) sent a letter to the International Accounting Standards Board (“IASB”). This letter responded to the IASB request for comments on its exposure draft – Additional Exemptions for First-Time Adopters.

CAMPUT’s position in this letter is to inform policy development at the IASB. The letter comments on the IASB proposal to permit the use of historical cost in certain circumstances as the opening value for property, plant and equipment at the date of adopting IFRS.
January 23, 2009

Issues Meeting, January 27, 2009
December 23, 2008

The Board’s letter dated December 23, 2008 invites participation from all interested stakeholders.
December 8, 2008

IFRS Accounting Transition Work Plan is a summary of the results of the Planning Meetings (EB-2008-0104) with examples of key issues discussed during the meetings.
November 6, 2008

Board staff has posted comments from interested parties on the draft IFRS Transition Project Work Plan.
October 16, 2008

Board staff has posted additional material for the October 16, 2008 meeting of the IFRS Consultation.
October 7, 2008

Board staff has posted the IFRS Transition Project Work Plan proposed to amend OEB regulatory accounting instruments affected by the accounting transition to IFRS.
September 16, 2008

Board staff has posted additional material for the September 16, 2008 meeting of the IFRS Consultation.
September 12, 2008

Board staff has posted material for the September 16, 2008 meeting of the IFRS Consultation.
August 21, 2008

Board staff has posted presentations filed by participants for the August 22, 2008 meeting of the IFRS Consultation.
May 8, 2008

The Board has announced the creation of the consultation regarding the Transition of Regulatory Accounting to IFRS.