PwC's newly developed Guide to Accounting for Utilities and Power Companies provides accounting guidance for reporting entities in the utility and power industry to consider when preparing financial statements in accordance with accounting principles generally accepted in the United States of America.
The guide is organized by topical area into 20 chapters. The chapters address a variety of accounting issues relevant for utilities and power companies and should be used as a supplement to general accounting guidance provided by U.S. GAAP and other PwC guides.
The chapters include accounting and financial reporting considerations in the following areas:
- Commodity contract accounting, including leasing and derivatives. Chapters relating to natural gas, emission allowances, and renewable energy credits are also included.
- Accounting for power-related investments including business combinations, investments in power plant entities, and consolidation of variable interest entities.
- Accounting for nonfinancial assets and liabilities including inventory, property, plant, and equipment, asset retirement obligations, and nuclear power plants. The accounting for government grants is also included.
- Accounting for regulated operations, including considerations relating to utility plant, income taxes, and business combinations.