Derecognition
32
An entity shall derecognise part or all of a regulatory asset or regulatory liability when that part or all of the amount recognised no longer meets the definition of a regulatory asset or regulatory liability. For example:
(a) when the entity recovers part or all of a regulatory asset or fulfils part or all of a regulatory liability and, applying paragraph 53(a), updates the estimates of future cash flows.
(b) when part or all of a regulatory asset is settled or when part or all of a regulatory liability is waived by a regulator or another party. In such cases, an entity shall:
(i) recognise an asset or liability if required by other Australian Accounting Standards (for example, a financial asset or financial liability recognised by applying AASB 9 Financial Instruments); and
(ii) recognise in profit or loss the difference between the amount derecognised and any new asset or new liability recognised by applying another Australian Accounting Standard.
33
An entity shall also derecognise part or all of a regulatory asset or regulatory liability when that part or all of the regulatory asset or regulatory liability no longer meets the recognition criteria set out in paragraph 27 or 29. In such cases, an entity shall derecognise the part of the regulatory asset or regulatory liability that no longer meets the recognition criteria and recognise any related regulatory expense or regulatory income in profit or loss.