Methodology for maintaining separate accounting records for natural monopoly entities
Separate Accounting Methodology
The developed methodology aims to ensure transparent accounting of revenues, expenses, and engaged assets of Natural Monopoly Entities (NMEs) across regulated and non-regulated types of services. It defines unified approaches to asset classification, cost allocation, and production reporting in compliance with legislative requirements and IFRS (International Financial Reporting Standards) principles.
🔑 Key Elements
Direct Allocation Priority: Primary focus on directly attributing expenses and revenues to specific types of services.
Causal Allocation: Application of cause-and-effect relationships and standardized cost-driver bases for allocation.
Asset Classification: Categorization of assets into direct, indirect, shared, and general-purpose assets.
Standardized Tariff Estimates: Unified frameworks for developing tariff estimates.
Internal Governance: Robust tools for internal control and auditing.
🎯 Purpose & Impact
This methodology was developed to enhance the accuracy of tariff calculations and prevent cross-subsidization, as well as to facilitate efficient preparation for public reporting and oversight by regulatory authorities.