May 31, 2013 - IASB
Response to the International Accounting Standards Board's
March 2013 Request for Information
- 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.