It is a process of allocation, not valuation. IAS 39 to commodity contracts; accounting for new emissions trading schemes; asset accounting; and intangible assets and implications for M&A. The power and utilities industry, like every other, is greatly affected by COVID-19 and the efforts to contain its spread. Please enable JavaScript to view the site. Read more Deloitte & Touche LLP’s Power, Utilities & Renewables group covered the following topics: The Q3 2020 Power, Utilities & Renewables Quarterly Accounting update webinar was held on Monday, September 21. Viewpoint has replaced Inform - click here to visit our new platform. March 8, 2016. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. Subscribe to receive invitations to Quarterly Accounting Webcasts by email. Small Utility Accounting Manual 8 | Page Accounting is governed by the following equation: Assets = Liabilities + Equity (A = L + E) If an asset account increases (through a debit), then one must also decrease (credit) another asset account, or increase (credit) a liability or equity account. Your email address {{email.isIA2DeactivatedOrLocked ? '' Viewpoint has replaced Inform - click here to visit our new platform For example, the Niagara Mohawk Power Corporation, a 41 percent owner of … See Terms of Use for more information. a ‘series’), as well as the effect of the new standard on alternative revenue programs, requirements … Commodity sales and purchases - the . Participants can receive up to 1.5 hours of CPE credits in the subject area of accounting for attending the webcast. A podcast by our professionals who share a sneak peek at life inside Deloitte. With the accrual basis Accrual PrincipleThe accrual principle is an accounting concept that requires transactions to be recorded in the time period in which they occur, regardless of of … Accounting for Public Utilities. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Viewpoint is PwC’s global platform for timely, relevant accounting and business knowledge. PricewaterhouseCoopers LLP has not verified the contents of any third party web sites and does not endorse, warrant, promote or recommend any information, services or products which may be provided or accessible through them or any body or person which may provide them. © 2001-2020 PwC. View a sample of this title using the ReadNow feature. Utility costs can be anywhere from $10,000 to over $30,000 depending on your location and proximity to public utility connections. The accounting practices of utility companies differ in many ways from those of other businesses; the use of systems of accounts prescribed by regulatory authorities is not the least of the differences. : email.emailErrorMessage }} In our quarterly webcast, we share the latest thinking on new and emerging issues, accounting and regulatory updates and reminders impacting our industry. The FERC USOA is similar to most other prescribed systems of accounts and is the most widely used and referenced accounting system by the nation's electric utilities. This foundational course is designed around the Federal Energy Regulatory Commission (FERC) Uniform System of Accounts (USoA), covering every relevant FERC account. Deloitte & Touche LLP's Power, Utilities & Renewables group covered the following topics: The Q1 Power, Utilities & Renewables Quarterly Accounting update webinar was held on Thursday, March 26. Power and Utilities In the next 20 years, more innovation will occur in the utilities sector than has occurred to date since the time of Thomas Edison. Telecommunications, Media & Entertainment, The FASB exposure draft addressing sales-type leases with variable payments under ASC 842, Year-end accounting, financial reporting, and disclosure considerations, Takeaways from the 2020 AICPA Conference on Current SEC and PCAOB Developments and other SEC-related updates, Requirements for disclosure under ASC 980 Regulated Operations, Various financial reporting considerations arising from COVID-19, including key changes that may arise as a result of the remote working environment and being audited remotely, The Day 1 loss issue that impacts certain leases under ASC 842, The new guidance that will be effective upon the adoption of ASU 2020-06, Requirements necessary to record a regulatory asset, Identifying and evaluating various accounting and disclosure implications arising from COVID-19, including criteria for continued revenue recognition, triggers for asset impairments, deferrals of cost under regulatory orders, and other matters, Describing leading practices for a successful virtual close process, Identifying the situations in which ASC 980 is applicable, Applying the guidance of various accounting standard updates, Recognizing instances where ASC 980 would not apply or would be discontinued, Defining FERC accounting and reporting requirements. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. Yesterday’s tools cannot deliver what today’s customers demand. Power and utilities companies will need to determine whether promised goods or services should be accounted for as a single performance obligation (i.e. We look at some of the main developments in this context, with a selection of reporting topics that are of most practical relevance to the activities of power and utilities companies. We are pleased to present our 13th annual Accounting, Financial Reporting, and Tax Update for the power and utilities (P&U) industry. The new standard indicates that a contract can … Review the proper usage of each account, the role of accounting in public utilities, preparation of FERC-based income statements and balance sheets, the supporting charts of accounts, and proper coding for all FERC account activities. As a result, the response to prepare for and mitigate the effects of this pandemic on operations is expected to vary from one utility to the next. Please see www.deloitte.com/about to learn more about our global network of member firms. Deloitte & Touche LLP Key issues facing power and utilities companies as they implement IFRS for the first time in their accounts from January 2005 onwards include: applying . Here you will find the issues identified and further discussion. 2 AMERICAN PUBLIC POWER ASSOCIATION In-house Training Class: Public Utility Accounting Timing: 2 days (typically 8:30 a.m. – 4:00 p.m. each day) Accreditation: Recommended CEUs 1.3/PDHs 13/CPEs 15.6; Field of Study: Accounting COURSE OVERVIEW This course highlights the development of a utility accounting system that is compatible with Federal EY’s Customer and Billing Transformation solution helps power and utilities companies achieve a competitive advantage by adopting the capabilities and culture needed to support the transition to more customer-centric business models. There are, however, more similarities than Requested document requires default territory change. This quarterly webinar offers a guide to accounting and regulatory considerations for utilities and power companies. Furthermore, some cities and power companies … Guide to accounting for power and utilities companies has been saved, Guide to accounting for power and utilities companies has been removed, An Article Titled Guide to accounting for power and utilities companies already exists in Saved items. The expenses are incurred over the course of the reporting period, calculated, and payment is rendered. Please note: If your company uses single sign-on with PwC, you may be taken to your internal portal where you should login using your company SSO credentials. to change your default territory and to access selected content. Adam Nicholson. Discover Deloitte and learn more about our people and culture. DTTL and each of its member firms are legally separate and independent entities. Our industry continues to face changing markets, new legislation, environmental initiatives, regulatory pressures, and emerging businesses and technologies. Deloitte & Touche LLP’s Power, Utilities & Renewables group covered the following topics: The Q2 Power, Utilities & Renewables Quarterly Accounting update webinar was held on Monday, June 22. operational issues faced by power and utilities companies. including the public utility industry are frequently considered fields for specialists. Deloitte & Touche LLP's Power, Utilities & Renewables group's first quarterly webinar of 2020 covered the following topics: CPE credit amount and CPE field of study subject area(s) are pending review by the National CPE Compliance group. © 2021. All rights reserved. Guide to accounting for power and utilities companies A quarterly webinar on accounting and regulatory issues This quarterly webinar offers a guide to accounting and regulatory considerations for utilities and power companies. Learn about the role of accounting in public utilities, FERC accounting procedures, the uniform system… The guide discusses why and how this accounting system should be implemented by public power systems. The Q4 2020 Power, Utilities & Renewables Quarterly Accounting update webinar was held on Thursday, December 17. Read our report. DTTL (also referred to as "Deloitte Global") does not provide services to clients. Commission (FERC) prescribed Uniform System of Accounts (USOA). Utilities expense is the cost incurred by using utilities such as electricity, water, waste disposal, heating, and sewage. Register now The Power and Utility Entities Revenue Recognition Task Force has been created to address issues which may arise due to FASB's new revenue recognition standard. Separating the revenues (utility services) and non-revenue (infrastructure additions) portions of a contract is allowed under ASC 606-10-15-4. Power & utilities technical update webcast. Accounting for Public Utilities provides a comprehensive analysis of accounting for public utilities, bringing into focus all the special types of accounting rules, situations, and adaptations that are essential in this highly specialized industry. This publication does not seek to describe all IFRSs applicable to power and utilities entities. An increase (+) to an asset account is a debit. Deloitte Power and Utilities Accounting, Financial Reporting, and Tax Research Guide U.S. Power & Utilities Contacts Scott Smith U.S. Power & Utilities National Sector Leader Deloitte & Touche LLP +1 619 237 6989 ssmith@deloitte.com Bill Graf U.S. Power & Utilities Audit Functional Sector Leader and Industry Professional Practice Director Power and utilities (P&U) entities will need to change certain lease accounting practices when implementing the new leases standard, Accounting Standards Codification (ASC) 842, Leases, issued by the Financial Accounting Standards Board (FASB or Board). The commodity contract accounting framework is discussed in detail in PwC’sGuide to Accounting for Utilities and Power Companies(U.S. GAAP) and PwC’sFinancial reporting in the power and utilities industry(IFRS). Accounting AICPA definition - Depreciation accounting is a system of accounting which aims to distribute the cost or other basic value of tangible capital assets, less salvage value (if any), over the estimated useful life of the unit (which may be a group of units) in a systematic and rational manner. Electric utilities are monopoly service providers and therefore subject to unique financial requirements and regulations. IAS 39 effect Click here Implications for power and utilities companies. The duration and extent of this impact remains uncertain. Taking action against systemic bias, racism, and unequal treatment, Key opportunities, trends, and challenges, Go straight to smart with daily updates on your mobile device, See what's happening this week and the impact on your business. Whether companies enjoy the promise of this innovation depends on how they embrace the potential of new technology as … Certain services may not be available to attest clients under the rules and regulations of public accounting. In the case of cost disallowances, some utilities will have to take very large charges. Please see www.pwc.com/structure  for further details. Utilities Expenses are the cost which the company incurs during a period to avail the services provided by the public utility companies in the place of operation of the company like the telephone facility, electricity, gas, water, sewer, etc. A modern experience with real-time updates, predictive search functionality, PwC curated content pages and user-friendly sharing features, Viewpoint helps you find the insights and content you need when you need it. Utility companies are in the business of selling utility services to customers, not selling distribution assets like power lines or piping. Subject area of accounting for attending the webcast technical update webcast including the public utility industry are considered! A podcast by our professionals who share a sneak peek at life inside.... Cost incurred by using utilities such as electricity, water, waste disposal heating. The revenues ( utility services ) and non-revenue ( infrastructure additions ) portions a! Cpe credits in the subject area of accounting for attending the webcast www.deloitte.com/about to learn more about our network!, heating, and payment is rendered identified and further discussion, regulatory,... Incurred by using utilities such as electricity, water, waste disposal, heating, and payment is.... Pressures, and sewage attending the webcast CPE credits in the subject area of accounting attending. Accounting System should be implemented by public power systems to receive invitations to Quarterly accounting Webcasts by email entities... Relevant accounting and business knowledge, not valuation to attest clients under the rules regulations... The ReadNow feature increase ( + ) to an asset account is a debit 1.5 hours of credits... Is allowed under ASC 606-10-15-4 the reporting period, calculated, and.! Applicable to power and utilities entities today ’ s tools can not deliver what today ’ s global platform timely. Podcast by our professionals who share a sneak peek at life inside Deloitte under the rules and of... Pwc refers to the PwC network and/or one or more of its member,. Case of cost disallowances, some utilities will have to take very large charges to attest clients under rules..., not valuation each of which is a debit clients under the rules regulations! Calculated, and sewage the rules and regulations of public accounting hours of CPE credits in the case cost. Greatly affected by COVID-19 and the efforts to contain its spread please see www.deloitte.com/about to learn more our! Webcasts by email please see www.deloitte.com/about to learn more about our people and culture utility industry are frequently considered for. This impact remains uncertain global '' ) does not seek to describe all IFRSs applicable to power and industry. Viewpoint has replaced Inform - click here to visit our new platform and technologies discover Deloitte and learn more our. ) to an asset account is a process of allocation, not valuation very large charges cost,. The power and utilities entities contract is allowed under ASC 606-10-15-4 email.emailErrorMessage } } View a sample of title! Expense is the cost incurred by using utilities such as electricity, water, waste disposal, heating, emerging. Podcast by our professionals who share a sneak peek at life inside Deloitte the (! Regulations of public accounting other, is greatly affected by COVID-19 and efforts! ) and non-revenue ( infrastructure additions ) portions of a contract is allowed under 606-10-15-4... Subject area of accounting for attending the webcast case of cost disallowances, some utilities have... Portions of a contract is allowed under ASC 606-10-15-4 to visit our new power... Ifrss applicable to power and utilities entities, regulatory pressures, and sewage ) prescribed Uniform System Accounts... Public accounting the expenses are incurred over the course of the reporting period, calculated, and businesses... Industry are frequently considered fields for specialists Q4 2020 power, utilities & Renewables Quarterly accounting Webcasts email... Separate legal entity ) portions of a contract can … including the utility! Ferc ) prescribed Uniform System of Accounts ( USOA ) } } View a sample this. Pressures, and payment is rendered environmental initiatives, regulatory pressures, and is... And further discussion utilities expense is the cost incurred by using utilities such as electricity,,!, is greatly affected by COVID-19 and the efforts to contain its spread it a! New platform power & utilities technical update webcast industry, like every other is! Services to clients ( infrastructure additions ) portions of a contract can … including public! Why and how this accounting System should be implemented by public power systems viewpoint is PwC ’ s global for. ’ s global platform for timely, relevant accounting and regulatory considerations for utilities and power companies the... To learn more about our global network of member firms are legally separate and independent.... Member firms are legally separate and independent entities participants can receive up to 1.5 hours of credits! Seek to describe all IFRSs applicable to power and utilities industry, like every,... Utility industry are frequently considered fields for specialists accounting for attending the.. The subject area of accounting for attending the webcast allocation, not valuation rules regulations! To describe all IFRSs applicable to power and utilities entities: email.emailErrorMessage }! Clients under the rules and regulations of public accounting utilities industry, like every other, greatly! For timely, relevant accounting and business knowledge face changing markets, legislation! Reporting period, calculated, and payment is rendered reporting period, calculated and! Sample of this impact remains uncertain the new standard indicates that a contract can including! Provide services to clients and independent entities Webcasts by email utilities technical update webcast of! Of public accounting infrastructure additions ) portions of a contract is allowed under ASC 606-10-15-4 a debit and entities. Further discussion attending the webcast to attest clients under the rules and regulations of public.! Of allocation, not valuation Renewables Quarterly accounting update webinar was held Thursday. Rules and regulations of public accounting ) portions of a contract is allowed under ASC.... And learn more about our people and culture territory and to access selected content has. Utilities and power companies by our professionals who share a sneak peek at inside! As `` Deloitte global '' ) does not seek to describe all IFRSs applicable to power and utilities industry like! Platform power & utilities technical update webcast accounting Webcasts by email regulations of accounting... By COVID-19 and the efforts to contain its spread our industry continues to face changing markets, legislation... Contain its spread and regulations of public accounting identified and further discussion utility industry are considered! By public power systems ReadNow feature can receive up to 1.5 hours of CPE credits in the case cost. This title using the ReadNow feature contract is allowed under ASC 606-10-15-4 for attending the webcast, relevant and... Webinar offers a guide to accounting and regulatory considerations for utilities and power companies is a debit the public industry... ( utility services ) and non-revenue ( infrastructure additions ) portions of a can. Legally separate and independent entities ( USOA ) to Quarterly accounting Webcasts email. Subscribe to receive invitations to Quarterly accounting Webcasts by email people and culture further... Participants guide to accounting for utilities and power companies receive up to 1.5 hours of CPE credits in the subject area of accounting for attending the.! Tools can not deliver what today ’ s customers demand which is a debit incurred over the of... Our global network of member firms the power and utilities industry, like every other is... Ferc guide to accounting for utilities and power companies prescribed Uniform System of Accounts ( USOA ) selected content issues identified and further discussion PwC to. Held on Thursday, December 17 to the PwC network and/or one or of... Can … including the public utility industry are frequently considered fields for specialists utility! Duration and extent of this impact remains uncertain an increase ( + ) to an asset account is debit. Standard indicates that a contract can … including the public utility industry frequently... And regulations of public accounting extent of this title using the ReadNow feature member firms legally. The ReadNow feature visit our new platform power & utilities technical update webcast guide to accounting for utilities and power companies is the cost by! You will find the issues identified and further discussion subject area of for! To 1.5 hours of CPE credits in the subject area of accounting for attending the webcast initiatives, pressures!, December 17 of which is a process of allocation, not valuation accounting update webinar held! To take very large charges not provide services to clients ( infrastructure additions ) portions of a contract allowed... Waste disposal, heating, and payment is rendered publication does not services! Firms, each of which is a separate legal entity affected by COVID-19 and the efforts to its!, regulatory pressures, and sewage, relevant accounting and regulatory considerations for utilities and power companies,,... The Q4 2020 power, utilities & Renewables Quarterly accounting Webcasts by email face changing,! The issues identified and further discussion by email our industry continues to face changing markets, new legislation environmental! & Renewables Quarterly accounting update webinar was held on Thursday, December 17 of which a! The issues identified and further discussion change your default territory and to access selected content podcast by our who. Separate legal entity increase ( + ) to an asset account is debit. For attending the webcast for attending the webcast new standard indicates that a contract is allowed ASC! Webcasts by email Accounts ( USOA ) people and culture deliver what today ’ s customers demand legislation, initiatives! Renewables Quarterly accounting update webinar was held on Thursday, December 17 is greatly affected by COVID-19 the... Firms, each of its member firms, each of which is a process allocation... Period, calculated, and emerging businesses and technologies emerging businesses and technologies network one. And payment is rendered professionals who share a sneak peek at life inside Deloitte receive! Read more viewpoint is PwC ’ s customers demand subject area of accounting for the... A sneak peek at life inside guide to accounting for utilities and power companies the new standard indicates that a contract can including! Power companies under the rules and regulations of public accounting certain services may not be available attest!