Accounting for Infrastructure Regulation: An IntroductionThis title provides a practical guide for regulators, policy-makers, and utility managers for establishing regulatory accounts that can be the cornerstone for better, more complete, and more reliable information. It sets out the essential accounting features of regulatory accounts and provides practical guidance on controversial areas such as cost allocation, asset valuation, and depreciation. It emphasizes the essential requirements for consistency with Generally Accepted Accounting Principles (GAAP). |
Other editions - View all
Common terms and phrases
addition adjusted allow amount analysis apply approach asset base audit Authors balance basis calculated capital cash flow chapter common company’s competitive concerns concession considered consistent cost accounting cost allocation countries customers decisions defined depreciation detailed determination develop direct discussed distribution economic efficiency electricity ensure entity example Excluded expenditure expenses financial firm future guidelines I I C important included income indicators indirect costs interest internal investment issues liabilities limited materials methodology objectives obligations operator parties performance period present principles privatization problem production profit RAGs ratio reasonable reflect regulator regulatory accounting reporting requirements result revenue risks rules sector separation share shareholders Source specific standard statements statutory structure Table tariff tion transactions United unregulated activities users utility valuation xxxxx xxxxx xxxxx
Popular passages
Page 93 - And in order to ascertain that value, the original cost of construction, the amount expended in permanent improvements, the amount and market value of its bonds and stock, the present as compared with the original cost of construction, the probable earning capacity of the property under particular rates prescribed by statute, and the sum required to meet operating expenses, are all matters for consideration and are to be given such weight as may be just and right in each case.
Page 93 - Its bonds and stock, the present as compared with the original cost of construction, the probable earning capacity of the property under particular rates prescribed by statute, and the sum required to meet operating expenses, are all matters for consideration, and are to be given such weight as may be just and right In each case. We do not say that there may not be other matters to be regarded in estimating the value of the property. What the company is entitled to ask is a fair return upon the value...
Page 6 - Financial reporting should provide information that is useful to present and potential investors and creditors and other users in making rational investment, credit, and similar decisions. The information should be comprehensible to those who have a reasonable understanding of business and economic activities and are willing to study the information with reasonable diligence.
Page 6 - Financial reporting should provide information about the economic resources of an enterprise, the claims to those resources (obligations of the enterprise to transfer resources to other entities and owners' equity), and the effects of transactions, events, and circumstances that change its resources and claims to those resources.
Page 6 - Financial reporting should provide information to help present and potential investors and creditors and other users in assessing the amounts, timing and uncertainty of prospective cash receipts from dividends or interest and the proceeds from the sale, redemption, or maturity of securities or loans. Since investors...
Page 6 - Since investors' and creditors' cash flows are related to enterprise cash flows, financial reporting should provide information to help investors, creditors, and others assess the amounts, timing, and uncertainty of prospective net cash inflows to the related enterprise. . Financial reporting should provide information about the economic resources of an enterprise, the claims to those resources (obligations of the enterprise to transfer resources to other entities and owners...
Page 28 - Management accounting is the process of identification, measurement, accumulation, analysis, preparation, interpretation, and communication of financial information used by management to plan, evaluate, and control within an organization and to assure appropriate use of and accountability for its resources.
Page 50 - In basic accounting terms, a sunk cost is a cost that has already been incurred and that cannot be changed by any decision made now or in the future.
Page 109 - ... one party has influence over the financial and operating policies of the other party to an extent that that other party might be inhibited from pursuing at all times its own separate interests...
Page 27 - An information system can be defined as "a group of interrelated components working together to collect, process, store, and disseminate information to support decision making and control it in an organization