# ASC 250-980: Accounting Changes and Error Corrections — Regulated Operations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/250/980/) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:17:47.227Z to 2026-09-09T23:17:57.739Z Record version: sha256:3d8b9daa6f3caabd83d7af7fa795316ff6d9d5942b9ca26ba966ace57e7c0c82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 250-980: Accounting Changes and Error Corrections — Regulated Operations ### Machine-generated study aids ```json { "summary": "This Subtopic applies the general accounting change and error correction rules of Topic 250 to entities with regulated operations that meet the criteria of paragraph 980-10-15-2 (so that costs designated for future recovery by the regulator are probable of recovery). Its core rule is that a change in accounting method that does not affect costs allowable for rate-making purposes is reported the same way an unregulated entity would report it, whereas a change that does affect allowable costs is generally implemented the way it is implemented for regulatory purposes. It also confirms that prior period adjustments are limited to error corrections and prior interim period adjustments of the current fiscal year, and that previously unaccrued estimated refunds are charged to income when the accrual criteria are first met.", "key_points": [ "All guidance in this Subtopic assumes the entity meets the criteria in paragraph 980-10-15-2, so recovery of any cost designated for future recovery by the regulator is probable (250-980-55-1).", "A change in accounting method that does not affect costs allowable for rate-making purposes is applied in the same manner as by an unregulated entity (250-980-55-3).", "A change in accounting method that does affect allowable costs for rate-making purposes is generally implemented in the way it is implemented for regulatory purposes; changing between capitalization/amortization and expensing of research and development costs is cited as an example (250-980-55-3).", "Paragraphs 250-10-45-25 through 45-26 limit prior period adjustments (other than those resulting from reporting accounting changes) to corrections of errors and adjustments related to prior interim periods of the current fiscal year (250-980-55-4).", "Estimated refunds not previously accrued are charged to income in the first period in which they meet the accrual criteria of paragraph 450-20-25-2 (250-980-55-5).", "If estimated refund amounts are material, the disclosures specified in paragraph 980-605-50-1 must be furnished (250-980-55-5).", "The Subtopic follows the same scope and scope exceptions as Section 980-10-15 (250-980-15-1)." ], "categories": [ "Industry-specific", "Presentation", "Disclosure", "Recognition" ], "audience_level": "intermediate", "student_note": "The key exam trap is assuming regulated entities always follow Topic 250's retrospective-application default: they do only when the change does not affect rate-making allowable costs; if it does, the regulatory treatment generally drives the accounting. Remember this only works if the entity qualifies under 980-10-15-2.", "related_topics": [ "980-10", "980-605", "250-10", "450-20", "730-10" ], "key_concepts": [ "regulated operations", "change in accounting principle", "allowable costs for rate-making", "prior period adjustment", "error correction", "estimated refunds", "regulatory accounting", "research and development costs" ] } ``` Source downloaded (UTC): 2026-09-09T23:17:47.227Z to 2026-09-09T23:17:47.227Z Record version: sha256:daa6972a204b558f04cd76b040cf51beb46db2bb7e4f1a66abd899a9ba4d9f96 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 250-980-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/250/980/#00-status) SEC content: no ##### [250-980-00-1](https://asc.understandingaccounting.org/asc/250/980/#250-980-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:47.227Z to 2026-09-09T23:17:47.227Z Record version: sha256:2c5ab177c0bf9a91edff8a871782b037eb44784dcbe02765f6e6c3997cfd6495 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
980-250-55-3AmendedAccounting Standards Update No. 2016-0202/25/2016
Source downloaded (UTC): 2026-09-09T23:17:49.225Z to 2026-09-09T23:17:49.225Z Record version: sha256:43f244b641c4ff5ba5bbe6f13dd4f9fbd33bcefeb89f77fb28e7bb29cf431205 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 250-980-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/250/980/#05-overview-and-background) SEC content: no ##### [250-980-05-1](https://asc.understandingaccounting.org/asc/250/980/#250-980-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:49.225Z to 2026-09-09T23:17:49.225Z Record version: sha256:69424cfe73e296e7d38a428f0fa8f724319a63d20750e317bc865016c1e73ba0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance for accounting changes and error corrections for entities with regulated operations. Source downloaded (UTC): 2026-09-09T23:17:53.101Z to 2026-09-09T23:17:53.101Z Record version: sha256:b31a309a9880cc5e8192a0f6afc255b16b0554c9583da78e1e1d1cfeae70ddad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 250-980-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/250/980/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [250-980-15-1](https://asc.understandingaccounting.org/asc/250/980/#250-980-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:53.101Z to 2026-09-09T23:17:53.101Z Record version: sha256:adc6d418d29ce43acfc59b3aa3c729e77c602f1093c2fdb9740d3bf67eb29e52 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 980-10-15. Source downloaded (UTC): 2026-09-09T23:17:57.739Z to 2026-09-09T23:17:57.739Z Record version: sha256:3507def1ae28e8bfe9b3ddd5c1cf619f355a37ee62f84c244cfa1d93549184e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 250-980-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/250/980/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [250-980-55-1](https://asc.understandingaccounting.org/asc/250/980/#250-980-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:57.739Z to 2026-09-09T23:17:57.739Z Record version: sha256:7a290dc696f5acf91b0ecb689b0cb61d9efcd9d98f2e56852036bc3dc5a0867b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following guidance assumes that the entity meets the criteria in paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2); thus, recovery of any cost is probable if that cost is designated for future recovery by the regulator. ##### [250-980-55-2](https://asc.understandingaccounting.org/asc/250/980/#250-980-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:57.739Z to 2026-09-09T23:17:57.739Z Record version: sha256:2de0e576fd715fdbdad33f5f3848759da1751c47af37ea57d11c76e27f0d73fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Topic 250 defines various types of accounting changes and establishes guidelines for reporting each type. ##### [250-980-55-3](https://asc.understandingaccounting.org/asc/250/980/#250-980-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:57.739Z to 2026-09-09T23:17:57.739Z Record version: sha256:11a19389d64f070455593ce9cd5407f1773a7ad3f7a57617f144ed5172431366 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a regulated entity changes accounting methods and the change does not affect costs that are allowable for rate-making purposes, the regulated entity would apply the change in the same manner as would an unregulated entity. If a regulated entity changes accounting methods and the change affects [allowable costs](https://asc.understandingaccounting.org/glossary/a/#allowable-costs "All costs for which revenue is intended to provide recovery. Those costs can be actual or estimated. In that context, allowable costs include interest cost and amounts provided for earnings on shareholders' investments.") for rate-making purposes, the change generally would be implemented in the way that it is implemented for regulatory purposes. A change in the method of accounting for research and development costs, either from a policy of capitalization and amortization to one of charging those costs to expense as incurred or vice versa, is an example of that type of change. ##### [250-980-55-4](https://asc.understandingaccounting.org/asc/250/980/#250-980-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:57.739Z to 2026-09-09T23:17:57.739Z Record version: sha256:66b79e6e52544407536d40e50d44005aea6b384ad86024d7a5242a9a87c0a797 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [250-10-45-25 through 45-26](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-25) limit prior period adjustments (other than those that result from reporting accounting changes) to corrections of errors and adjustments related to prior interim periods of the current fiscal year. ##### [250-980-55-5](https://asc.understandingaccounting.org/asc/250/980/#250-980-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:17:57.739Z to 2026-09-09T23:17:57.739Z Record version: sha256:147bd06bc50d27cec1705af83c63325ff2d2ae979a13e062908c87f93575031e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In accordance with Section 250-10-45, estimated refunds that were not previously accrued would be charged to income in the first period in which they meet the criteria for accrual (see paragraph [450-20-25-2](https://asc.understandingaccounting.org/asc/450/20/#450-20-25-2)). If the amounts are material, the disclosures specified in paragraph [980-605-50-1](https://asc.understandingaccounting.org/asc/605/980/#605-980-50-1) should be furnished.