Accounting for Infrastructure Regulation

An Introduction

Eric Ian Groom, Richard Schlirf Rapti, Martin Rodriguez Pardina

• Publisher: World Bank Publications
• Year: 2008
• eBook ISBN: 9780821371800
• Edition: 0
• Topic: Business
• Subtopic: Infrastructure
• Index: Business

Developing effective regulation for utilities has always depended on getting good accounting information on finances and operations. But reforms within the utility sector--such as promoting competition and encouraging private participation--make accurate regulatory accounting even more important. As sector and corporate structures become more complex, with utilities operating in both competitive and regulated markets or across several jurisdictions, cost allocations have become both more critical and complex. Clear requirements for regulatory accounts are an essential element in the transparent, consistent, and credible regulation of utilities and reporting of their performance. 'Accounting for Infrastructure Regulation: An Introduction' provides a practical guide for regulators, policy makers and utility managers to establishing regulatory accounts that can be the cornerstone for better, more complete, and more reliable accounting information. Drawing upon a number of case studies to illustrate key issues and choices, the book sets out the essential accounting features of regulatory accounts and provides practical guidance on controversial areas such as the allocation of costs, the valuation of assets, and depreciation. The book emphasizes the need for consistency with Generally Accepted Accounting Principles (GAAP), but highlights the specific role and requirements of regulatory accounts from the perspective of sector reform and best-practice regulation.

Table of contents

• Contents
• Foreword
• Acknowledgments
• Abbreviations
• 1. Why Accounting Information Matters
• 2. Case Studies
• 3. Corporate Information and Financial Accounting
• 4. Management and Cost Accounting
• 5. Why Do Regulatory Accounting?
• 6. Core Issues in Regulatory Accounting
• 7. Scope of a Regulatory Accounting System
• Annex 1 Understanding Financial Statements: Ratio Analysis
• Annex 2 Regulatory Model
• Annex 3 Examples of Guidelines and Templates
• Annex 4 Impacts of Alternative Depreciation Profiles
• Annex 5 List of Sample Performance Indicators
• Annex 6 Cost Allocation: Illustration of a Step-by-Step Approach
• Annex 7 Regulatory Asset Base Valuation
• Bibliography
• Index