Reading IFRS 20: First Impressions from the Final Standard

June 2, 2026

About a month ago, Richard McCabe and I presented to 75 industry colleagues on IFRS 20. At that time, the standard had not been officially released, but Richard’s role on the consultative group for the regulations allowed him to preview what was to be included, the impact that the new regulations would have on rate-regulated utilities, and what preparers of financial statements would need to do in response.  

The release of the final standard on May 27, 2026, provided some early summer reading for technical accounting groups. While some will read the 2029 effective date as key, those who have prepared financial statements will understand that focusing on 2029 is the wrong strategy. The true driver for compliance is the requirement to present comparative figures for 2028. Others, rightfully, are more concerned about years 2030+ and the growing volume of data that will need to be tracked and reconciled. As Richard noted in our session last month, IFRS 20 presents real challenges for companies; the level of information required is tangible and systems in place today need to be evaluated and likely modified. 

This will take time and effort. The feedback from fieldwork participants to the IASB, as noted in the IASB’s Effects Analysis, provided interesting insights into where companies see themselves and the costs they are likely to incur in transition. Something that wasn’t surprising, though: recognition and disclosure represented the two largest areas of concern – nearly 50% of fieldwork participants had these as high or medium (IASB, IFRS 20 Effects Analysis, Figure 6, May 2026).  

I am excited to bring solutions that address those concerns to regulated utilities looking to address IFRS 20. PowerPlan’s capability to segregate costs included in regulatory capital base and track depreciation associated with each of those cost components is unique amongst systems. Our ability to do this on a utility scale, during the unprecedented growth our industries are facing, over the next fifty-plus years of the lives of those assets, is truly unique to PowerPlan.  

In addition, other large regulatory assets (like those related to excess fuel costs and pension liabilities) are easily managed in PowerPlan along with the corresponding monthly or annual journals. PowerPlan’s catalog of standard reports and Data Hub solution automates the disclosures required for financial statements. Beyond IFRS compliance, those same reports serve the dual purpose of supporting interrogatory requests that are sure to come. 

Our webinar event with Richard was not a one-off but the result of almost two years of collaboration. At PowerPlan, we take the responsibility of being the industry standard seriously, and that means we’re constantly working to stay ahead of the game. Whether it has been TCJA, FERC 898, or OBBBA, our clients and industry peers expect our team and our software to be ready for change. IFRS 20 comes with a similar obligation.  

Our bullpen of industry experts is ready to help you tackle the new regulations the same way we’ve done it before: with a deep understanding of what the requirements are and an eye on making sure your organization not only maintains compliance, but also achieves financial success. Connect with me on LinkedIn or contact us to get the conversation started today.