CRITERIA FOR RECOGNISING OR DISCLOSING A TARIFF DIFFERENCE AND BUDGET PAYMENTS: ADAPTING IFRS 20 TO AN ELECTRICITY DISTRIBUTION COMPANY
DOI:
https://doi.org/10.5281/zenodo.23728867Abstract
The article studies how an electricity distribution company should recognise or disclose a tariff difference and budget payments when the state sets the tariff and the budget partly covers the difference. IFRS 20 was issued on 27 May 2026, whereas national standards have no rules for regulatory balances or for separating a budget payment from a trading transaction. The author proposes special rules, regulatory-asset criteria and budget-payment criteria. Applied to nine items, they show that no item meets the regulatory-asset conditions in «Hududiy elektr tarmoqlari» JSC and the unrecognised difference is disclosed; a 1% deviation in purchase cost equals 0.84% of revenue. Proposals cover the accounting policy, tariff procedure and state-aid standard.Keywords
IFRS 20, tariff difference, regulatory asset, budget payment, distribution companyReferences
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