A rate regulated entity adopted IND AS in FY 2020-21. There was no balance of Regulatory Assets / Liabilities in Indian GAAP and as a result IND AS 114 was not applied during First Time Adoption of IND AS. Now, the entity wants to recognise Regulatory Assets as per IND AS 114. Can it be recognised since IND AS 114 in Paragraph 6 states that " An entity shall apply the requirements of this Standard in its financial statements for subsequent periods if and only if, in its first Ind AS financial statements 1 , it recognised regulatory deferral account balances by electing to apply the requirements of this Standard."
If it cannot be recognised, what solution is available to the entity as regards recognition of Regulatory Assets?
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