# ASC 980-20-15: Regulated Operations — Discontinuation of Rate-Regulated Accounting — 15 Scope and Scope Exceptions

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/980/20/#15-scope-and-scope-exceptions)

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## ASC 980-20-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/980/20/#15-scope-and-scope-exceptions)

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#### Overall Guidance

##### [980-20-15-1](https://asc.understandingaccounting.org/asc/980/20/#980-20-15-1)

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This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 980-10-15, with specific exceptions as noted below, which provides further guidance on an entity's operations that no longer meet the criteria of regulated operations.

#### Entities

##### [980-20-15-2](https://asc.understandingaccounting.org/asc/980/20/#980-20-15-2)

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Failure of an entity's operations to continue to meet the criteria in paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2) can result from different causes. Examples include the following:

1.  a
    
    Deregulation
    
2.  b
    
    A change in the regulator's approach to setting rates from cost-based rate-making to another form of regulation
    
3.  c
    
    Increasing competition that limits the entity's ability to sell utility services or products at rates that will recover costs (as used in paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2))
    
4.  d
    
    Regulatory actions resulting from resistance to rate increases that limit the entity's ability to sell utility services or products at rates that will recover costs if the entity is unable to obtain (or chooses not to seek) relief from prior regulatory actions through appeals to the regulator or the courts.

##### [980-20-15-3](https://asc.understandingaccounting.org/asc/980/20/#980-20-15-3)

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Regardless of the reason for an entity's discontinuation of application of the Regulated Operations Topic, this Subtopic specifies how that discontinuation shall be reported in the entity's general-purpose external financial statements.