May 31, 2013 - IASB

May 31, 2013

Analytica94, Inc.

Response to the International Accounting Standards Board's
March 2013 Request for Information
On
Rate Regulation

  • Rate regulation's purpose must be established in order to properly evaluate its effectiveness.
  • Adam Smith would undoubtedly agree that the undeniable purpose of rate regulation is to substitute for competition's effect on a profit-oriented monopoly's prices, profits and quality of service.
  • The IASB must be cautious that IFRS do not subvert regulatory requirements by substituting accounting form over regulatory substance.

 

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