meta_id 3005145

On 25 March 2026, the European Financial Reporting Advisory Group (EFRAG) requested that the International Accounting Standards Board (IASB) defer the effective date of IFRS 20 Regulatory Assets and Regulatory Liabilities by one year to 1 January 2030, rather than the currently designated effective date of 1 January 2029. During outreach activities in preparation for endorsement of IFRS 20, EFRAG identified that certain preparers—particularly multinational entities operating across multiple jurisdictions—may face challenges in applying the standard by the original effective date. EFRAG cited several reasons for the proposed deferral. The revised publication schedule has shortened the originally intended implementation timeline, reducing the time available for preparers to prepare for adoption. Multinational reporting entities require detailed knowledge of diverse and sometimes evolving regulatory regimes to implement the standard effectively. Additionally, certain key aspects of IFRS 20—including the recognition constraint, which depends on the relationship between IFRS assets and regulatory capital base items—will only be fully understood by stakeholders once the final wording is published. EFRAG emphasised that early adoption of IFRS 20 will remain possible for entities that are able to apply the standard sooner, allowing those with sufficient resources and regulatory clarity to proceed ahead of the proposed effective date. The deferral proposal aims to provide preparers with additional time to develop implementation guidance, systems, and processes necessary for compliance with the new standard. This development is significant for multinational entities and rate-regulated activities across Europe that will be subject to IFRS 20 upon its adoption.