Classification and presentation (AASB20_09-26)

Except as required by paragraph 64, an entity shall: 

(a) classify all regulatory income and all regulatory expense as revenue; and 

(b) present all regulatory income minus all regulatory expense as a line item in the statement of profit or loss.

Regulatory income includes regulatory interest income and regulatory expense includes regulatory interest expense.

In some cases, an entity applying other Australian Accounting Standards includes an item of expense or income in other comprehensive income. In such cases, the entity shall also include in other comprehensive income regulatory income or regulatory expense relating to that item of expense or income, as specified in paragraph 65. The entity shall: 

(a) classify regulatory income and regulatory expense included in other comprehensive income in accordance with paragraph 88 of AASB 18 Presentation and Disclosure in Financial Statements; 

(b) present regulatory income or regulatory expense separately from the related expense or related income; 

(c) reclassify regulatory income or regulatory expense included in other comprehensive income to the statement of profit or loss if, and only if, the entity reclassifies the related expense or related income to the statement of profit or loss in accordance with other Australian Accounting Standards; and 

(d) classify and present the reclassified regulatory income or regulatory expense in accordance with paragraph 62.

The regulatory income or regulatory expense to be included in other comprehensive income is the regulatory income or regulatory expense that arises in a reporting period because an entity recognises the related expense or related income that is included in other comprehensive income in that period. The entity determines such regulatory income or regulatory expense based on the amount of the compensation or deduction for that related expense or related income.

To apply paragraph 64(c) when an entity derecognises a regulatory asset or regulatory liability applying paragraph 32(b) or 33, the entity: 

(a) shall not reclassify regulatory income or regulatory expense included in other comprehensive income to the statement of profit or loss when the entity derecognises the regulatory asset or regulatory liability; and 

(b) shall reclassify any regulatory income or regulatory expense included in other comprehensive income to the statement of profit or loss when the entity reclassifies the related expense or related income to the statement of profit or loss.

An entity shall present in its statement of financial position: 

(a) regulatory assets and regulatory liabilities as line items; and 

(b) current and non-current regulatory assets, and current and non‑current regulatory liabilities, as separate classifications in accordance with paragraphs 99–102 of AASB 18, except when the entity presents all assets and liabilities in order of liquidity.