It is known that one of the major objectives of the NRAs is to ensure the provision of world standard telecommunication services at reasonable cost and prices, through creation of a suitable environment for competition among the different electronic communications operators.
Regulatory framework related to accounting separation and cost accounting in EU is based on Directive 2002/19/EC of the European Parliament and of the Council of 7 March 2002 on access to, and interconnection of, electronic communications networks and associated facilities (Access Directive).
A cost accounting system is a set of rules which supports the attribution of costs, revenues and capital employed to individual activities and services and enables a notified operator to establish a record keeping regime necessary to meet its regulatory obligations. One of the key objectives of a cost accounting system is to trace and analyse costs in order to demonstrate complience with a cost orientation obligation for regulated services.
An accounting separation system is a comprehensive set of accounting policies, procedures and tehcniques that can be applied to the preparation of financial information that demonstrate compliance with non-discrimination obligations and the absence of anti-competitive cross-subsidies. The ouptputs from such a system must be capable of independent verification (auditable) and fairly present the financial position and relationship (transfer charge arrangements) between product and service market.
In order to achieve these objectives, regulatory authorities need to ensure that the operators with significant market power (“SMP”) on the relevant telecommunication market submit appropriately formatted and detailed information to enable the Agency to assess the level of market competition.
The International Financial Reporting Standards (IFRS) are gaining importance due to globalization of the world economies. The point of IFRS is to maintain stability and transparency throughout the financial world.
This workshop is expected to show the level of adoption of the IFRS in the telecommunications sector withint he EMERG countries. Furthermore, innformations gathered from National Regulatory Authorities (NRAs) will cover the implementation of regulatory cost accounting methodologies, the state of play in terms of price regulations, and the way in which it is defined in practice.
The main objective of this workshop is to determine to what extent regulators are controlling the price of telecommunications services in the interest of end users.


Price Regulation Instruments of Price Regulation, Angela Blezinger, (Bnetza, Germany)

LINK: ANGELA Blezinger BNetzA Germany 2018_11_14 EMERG_Nikosia_Instruments of price regulation

Instruments of price regulation with focus on ERT (Economic Replicability Test),  Bernd Sörries (WIK)

Relevance and Issues of IFRS on Regulatory Cost Modelling, Edgar Cardozo Larrea (Detecon)

LINK: Relevance and Issues of IFRS on Regulatory Cost Modelling

IFRS 15 in Telecommunications, Suada Hadzovic (CRA, Bosnia and Herzegovina)

Rule on Cost accounting in Bosnia and Herzegovina, Nataša Kuzmanović, (CRA, Bosnia and Herzegovina)

LINK: Cost accounting presentation CRA

TRC’s Tools of Price Regulations, Rana Baker and Issa Jreisat (TRC, Jordan)


Instruments of Price regulations in Egypt, Aziza KHALIL and Dina Hassan Mahfouz Abdallah NAKHLA (NTRA, Egypt)


Recommendation 1:

EMERG NRAs should take efforts to implement their own Long run incremental cost (LRIC ) model rather then Fully Allocated Cost (FAC) model.

Recommendation 2.

EMERG NRAs should priorities wholesale price regulation over retail regulation.