Financial reporting in the power and utilities industry: International Financial Reporting Standards

International Financial Reporting Standards (IFRS) provide the basis for company reporting in an increasing number of countries around the world. Over 100 countries either use or are adopting IFRS reporting. The pace of standard-setting from the International Accounting Standards Board (IASB) has been intense in recent years, with a constant flow of changes for companies to keep up with.

One of the biggest challenges of any reporting standard is how best to interpret and implement it in the context of a specific company or industry. In general, IFRS is short on industry guidance. PwC is filling this gap with a regularly updated series of publications that take a sector-by- sector look at IFRS in practice.

In this edition, we look at the issues faced by utilities companies. We draw on our considerable experience of helping utilities companies apply IFRS effectively and we include a number of real-life examples to show how companies are responding to the various challenges along the value chain.

Of course, it is not just the IFRSs that are constantly evolving, but also the operational issues faced by power and utilities companies. We look at some of the main developments in this context with a selection of reporting topics that are of most practical relevance to power and utilities companies’ activities.

This publication does not seek to describe all IFRSs applicable to power and utilities entities. The ever-changing landscape means that management should conduct further research and seek specific advice before acting on any of the more complex matters raised.

PwC has a deep level of insight into and commitment to helping companies in the sector report effectively. For more information or assistance, please do not hesitate to contact your local office or one of our specialist power and utilities partners.