The impact of Ind AS 115 would vary by industry to industry. The impact of Ind AS 115 would vary by industry to industry. AICPA Revenue Recognition Task Forces are charged with developing revenue recognition implementation issues that will provide helpful hints and illustrative examples for how to apply the new Revenue Recognition Standard. And it’s coming faster than you think. Reporting entities in the power and utilities industry, including regulated and non-regulated power companies, will be affected by the new revenue recognition standard (the “new standard”), which replaces substantially all of the current U.S. GAAP and IFRS revenue recognition guidance. Distributed renewable generation, new digital technologies and changing consumer expectations are creating a new energy world that is more complex, competitive and challenging. What’s the impact on power and utility companies? Applying IFRS in Power & Utilities The revised revenue recognition proposal — power and utilities March 2012 IASB — proposed standard. Join 307,012+ Monthly Readers. This site uses cookies to store information on your computer. Revenue recognition in the energy industry might appear to be simple. Draft Revenue Recognition Implementation Issues included for informal comment, when available, will be listed below. Increasingly, as electric utilities modernize and add capabilities to the grid, new program options are doing double or triple duty—providing benefits to customers, serving as a grid resource, and potentially growing earnings … Power and utilities companies will need to determine whether promised goods or services should be accounted for as a single performance obligation (i.e. Revenue is the inflow of cash, receivables, other consideration arising in the course of ordinary activities of an enterprise, normally from the sale of goods, rendering of services, interest, royalties, and dividends. Revenue does not include income from investments accounted for under the equity method, revenues arising from lease agreements, and income from government grants. Intended to help power and utility companies with applying ASU No. KPMG insights into revenue recognition in financial reporting. The new revenue standard – effective from 1 January 2018 – is likely to affect the way you account for revenue. Access to additional resources and insights on the new standard. Spend your time wisely, and be confident that you're gaining knowledge straight from the source. KPMG’s insights on ASC 606 implementation. Issue status update. In association with the KPMG Global Energy Institute The new revenue standard – effective from 1 January 2018 – is likely to affect the way you account for revenue. By using the site, you consent to the placement of these cookies. revenue recognition. Read our privacy policy to learn more. The five-step model of revenue recognition as per Ind AS 115 is discussed below. Our advice for now? 1. See more. Revenue from contracts with customers (ASC 606) Financial statement presentation ; Leases (ASC 842) Financing transactions ; Stock-based compensation ; Foreign currency ; Loans and investments (post ASU 2016-13 and ASC 326) Transfers and servicing of financial assets ; Utilities and power companies P&U Revenue Recognition Survey ... new revenue model to regulated utility revenue? No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. Revenue recognition policies are scrutinized by investors, potential acquirers and regulators alike. the timing for revenue recognition – i.e. Power & Utilities Investment Banking: Interviews, Industry Overview, Key Operating and Valuation Metrics, Deal Types, Exit Opportunities, and More. All rights reserved. industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. But it's one that will reap big rewards if you choose to pursue it. revenue is changing. an accounting change. New revenue standard – For companies operating in the energy & utilities industry, potential issues to consider include: ... Banking and Capital Markets Construction and Transportation Education and Skills Entertainment and Media Government Insurance Power & Utilities Retail and Consumer Real Estate Telecommunications. Figure 2 shows the main differences between the three modeled scenarios. Informing your decision-making. Distributed renewable generation, new digital technologies and changing consumer expectations are creating a new energy world that is more complex, competitive and challenging. August 2017 1. For private companies in the Technology & Life Sciences sector, revenue recognition is an accounting risk area made more difficult by the rapid growth that characterizes the industry. Revenue is generated through the sale of commodities or the performance of services in exchange for consideration. Power & Utility Revenue Recognition Task Force . Power, utilities & renewables; Technology; Telecom, media & entertainment; Transportation & hospitality; Spotlight. However, all power and utilities entities have needed to carefully consider the standard’s new and modified quantitative and qualitative disclosure guidance, which has significantly increased the amount of information that companies must disclose about revenue activitie… whether to recognise revenue immediately or to defer it. This approach is explained in the following example calculation for a wind power plant. The CPA license is the foundation for all of your career opportunities in accounting. or. current revenue recognition guidance, including industry-specific guidance.3 •he new guidance is not expected to significantly change current practice for rate- T regulated operations that use published tariff rates to recognize revenue upon delivery of electricity or natural gas to a customer meter. With the new revenue standard now in effect, KPMG reports on the most significant industry issues. What's New. Wording to be Included in the Revenue Recognition Guide: Background . Many utilities track asset data, but what happens when there is so much data that it cannot be properly managed or utilized to its fullest potential? Our advocacy partners are state CPA societies and other professional organizations, as we inform and educate federal, state and local policymakers regarding key issues. What you need to know •Financial Accounting Standards Board (FASB) (collectively, the The IASB and the FASB have issued a second exposure draft of their converged revenue model that is closer to current IFRS and US GAAP than their 2010 proposal. a ‘series’), as well as the effect of the new standard on alternative revenue programs, requirements contracts, renewable engery credits and capacity sales. The list will be updated as the task force continues it discussions. SEC reporting . This Power & Utilities Spotlight discusses the new revenue model and highlights key accounting issues and potential challenges for P&U entities that recognize revenue under U.S. GAAP or IFRSs. What’s the impact on power and utility companies? The revenue recognition principle is a cornerstone of accrual accounting together with the matching principle.They both determine the accounting period in which revenues and expenses are recognized. We are capable of in-house development, EPC, structured finance, and O&M. Equity in earnings of unconsolidated investees also includes the impact of the company's share of 8point3's earnings related to sales of projects receiving sales recognition under IFRS but not GAAP. When we see legislative developments affecting the accounting profession, we speak up with a collective voice and advocate on your behalf. Power and Utility (P &U) entities enter into long- term contracts for the delivery of electricity and other commodities to a customer. Reporting revenue under IFRS 15 Revenue from Contracts with Customers is now one of your ordinary activities. Full revenue recognition implementation issues will be posted below for informal comments after review by the AICPA Financial Reporting Executive Committee (FinREC). The current emphasis on more testing on controls over revenue recognition now is largely a derivative of PCAOB interest in the topic in the past year or two. It is the revenue that a technology can receive on the electricity market (energy-only market),. But it is more than just an accounting change. The company includes adjustments related to the revenue recognition of certain utility and power plant projects based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligations and, when relevant, the allocation of revenue and margin to the company's project development efforts at the time of initial project sale. 13-1: Accounting for Tariff Sales to Regulated Customers; The following working draft was issued by the Timeshare Entities Revenue Recognition Task Force: Implementation Issue No. Delivering insights to financial reporting professionals. Revenue Recognition for Fixed Price Contracts – Consideration of Different Pricing Conventions . The standard will eliminate the transaction- and SEC Rules and Regulations . 16-6: Management Fee Agreements Actions to consider – Review the contractual terms of arrangements involving transfers of assets from customers to assess if the timing of revenue recognition will be affected under the new standard. In association with the KPMG Global Energy Institute. Receive timely updates on accounting and financial reporting topics from KPMG. Reporting revenue under IFRS 15 Revenue from Contracts with Customers is now one of your ordinary activities. Life at Deloitte Podcast. As the Power & Utility industry continues its rapid transformation to the utility industries of the future, it is important to stay abreast of the tax issues that the industry faces. Sharing our expertise and perspective. The mounting pressure to transform also offers the rare opportunity to rebuild strategies, structures, and processes from the ground up. 1. Revenue Recognition for Fixed Price Contracts – Consideration of Different Pricing Conventions . See our transport & logistics industry guide. In association with the KPMG Global Energy Institute The new revenue standard – effective from 1 January 2018 – is likely to affect the way you account for revenue. Summary• Two requirements for revenue recognition: – Shipment of goods in case of sale of goods or completion of service in case of service AND – Insignificant risk of realization or collection 9. Not all CPE credits are equal. For utilities, transformations can yield productivity improvements, revenue gains, better network reliability and safety, enhanced customer acquisition and retention, and entry into new business areas. Fiscal years beginning after, Interim periods – Expense recognition 25 Today, you'll find our 431,000+ members in 130 countries and territories, representing many areas of practice, including business and industry, public practice, government, education and consulting. Mergers & Inquisitions . Power & Utilities deals insights: 2021 Outlook. Highlights of the New Standard. Search. What’s the impact on power and utility companies? 1. Issue status update. specific industry matters that remain outstanding with the AICPA’s Power and Utility Entities Revenue Recognition Task Force. Financial reporting impacts of coronavirus. 2.3 Revenue recognition project 30 08PwC0291 - IFRS Utilities final edit 10.04.2008 11:54 Uhr Seite 4. Revenue for power and utilities companies, Companies in the power and utilities industry, Identifying the customer and the contract under the new standard may require significant judgment and impact the timing of revenue recognition and the accounting for certain contract costs, Accounting for variable consideration requires a different contract analysis and may require the estimation of fees, 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 don’t have any exposure to government utilities that alloc ate cost of a REC to inventory (out of power supply costs). Public water utility companies lose money for three reasons: (a) low rates of revenue collection, (b) high levels of nonrevenue water, and (c) low tariff rates (World Bank, 2013). Power & Utility Revenue Recognition Task Force . Revenue recognition for other projects sold to 8point3 is deferred until these projects reach commercial operations. This major overhaul of revenue recognition (effective for fiscal years starting after December 15, 2017 for public companies) affects almost every sector of the economy, and the power and utility (P&U) industry is no exception. In fiscal years beginning after, Early adoption allowed in fiscal years beginning after. As a result of the recognition and measurement guidance in ASC 606, some power and utilities companies have made changes to their financial statements. Revenue recognition. This power and utilities industry supplement discusses the exposed guidance from two American Institute of CPAs revenue task forces—oil and gas (O&G) and power and utilities (P&U)—and SEC views gathered from official speeches. What you need to know •Financial Accounting Standards Board (FASB) (collectively, the The IASB and the FASB have issued a second exposure draft of their converged revenue model that is closer to current IFRS and US GAAP than their 2010 proposal. Project development. Project development. For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance. Association of International Certified Professional Accountants. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Preparation and planning are key. Judgment may be required to conclude whether the invoiced amounts correspond with the value received. Mandatory effective dates and early adoption provisions: Annual periods – utilities, and that a decline in revenues affects business liquidity and profitability. Create your account. Business Combinations Business Combinations — SEC Reporting Considerations Carve-Out Transactions Comparing IFRS Standards and U.S. GAAP Consolidation — Identifying a Controlling Financial Interest Contingencies and Loss Recoveries Contracts on an Entity's Own Equity Convertible Debt Current Expected Credit Losses Disposals of Long-Lived Assets and Discontinued Operations … For additional information about the new standard, see Deloitte’s May 28, 2014, Heads Up. Below is a list of potential revenue recognition implementation issues identified by the Power and Utilities Revenue Recognition Task Force. Utility and power plant projects. The paper includes excerpts from large accelerated filers that were required to adopt the standard in the first quarter of 2018. The five-step model of revenue recognition as per Ind AS 115 is discussed below. (1) 5% 76% 19% Have you identified any differences in applying the new revenue model to non-regulated revenue? August 2017 To get your license, keep 3 E's in mind: education, examination and experience. 2. AICPA Revenue Recognition Task Forces are charged with developing revenue recognition implementation issues that will provide helpful hints and illustrative examples for how to apply the new Revenue Recognition Standard. Advanced Pattern Recognition Transforms Electric Utility Operations. Some are essential to make our site work; others help us improve the user experience. Power and Utility (P &U) entities enter into long- term contracts for the delivery of electricity and other commodities to a customer. The power and utilities sector faces radical transformation. The ASU states that the core principle for revenue recog­ni­tion is that an “entity shall recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the con­sid­er­a­tion to which the entity expects to be entitled in exchange for those goods or services.” Yes, becoming a CPA can be a challenging journey. We are a global We are a global Project development. Revenue Recognition Revenue Recognition Task Force Status of Implementation Issues On May 28, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. The complex arrangements between power and utility companies, governments, and customers pose some of the most difficult issues. We are the American Institute of CPAs, the world’s largest member association representing the accounting profession. Utilities can create new sources of revenue that hedge against declining sales growth and other competitive pressures, as well as improve customer satisfaction. Staff Contact: kim.kushmerick@aicpa-cima.com, IDENTIFIED REVENUE RECOGNITION IMPLEMENTATION ISSUES. For further information . Applying the new revenue recognition standard. With the onset of the COVID-19 global pandemic in 2020, M&A activity in the P&U sector saw initial reductions in both deal volumes and total deal value; however, deal value rebounded in the second half of the year. The same has been discussed in more details later in this article. Kelen Camehl, CPA, MBA. We generate revenue from selling power to our customers (utilities and private enterprises), EPC contract management, and O&M services. A US-based utility generating power from coal, natural gas and wind turbine sites managed hundreds of thousands of assets worth a total of over $1 billion. Trying to log in to another AICPA website? Wording to be Included in the Revenue Recognition Guide: Background . Typically revenue should be recognised based on the transfer of control of the good or service to the customer. revenue recognition. Power and Utility Entities Revenue Recognition Task Force. Working Draft: Proposed Implementation Issues for Revenue Recognition: Power & Utility Entities (#13-1): Accounting for Tariff Sales to Regulated Customers. If you have: – transfers of assets from customers But it is more than just an accounting change. If your company hasn’t yet begun implementing the changes to revenue recognition, now is the time to start. However there is a practical expedient to recognise revenue based on a right to invoice if that corresponds with the value the customer has received to date. At sale: expense doesn’t match revenue Most consider the expense to create a RE C as $0 anyway. NEWS RELEASES. But it is more than just . Utilities The new revenue recognition standard power and utilities What you need to know Application of the requirements of the new revenue recognition standard will require P&U entities to use a greater degree of judgement. current revenue recognition guidance, including industry-specific guidance.3 •he new guidance is not expected to significantly change current practice for rate- T regulated operations that use published tariff rates to recognize revenue upon delivery of electricity or natural gas to a customer meter. This standard has the potential to affect every entity’s day-to- day accounting and, possibly, the way business is executed through contracts with customers. Due to bundled sales … KPMG insights into revenue recognition in financial reporting. Join 307,012+ Monthly Readers. Tucson Electric Power Receives Decision in General Rate Application December 23, 2020; Fortis Inc. Legacy utility and power plant projects: The company included adjustments related to the revenue recognition of certain utility and power plant projects based on percentage-of-completion accounting and, when relevant, the allocation of revenue and margin to our project development efforts at the time of initial project sale. Free Banker Blueprint + Discover How To Break Into Investment Banking, Hedge Funds or Private Equity, The Easy Way. Contents ... All utility entities, whether gas, power or water utilities, face similar issues associated with sourcing the item, delivering it to the customer, and maintaining the infrastructure used to do so. Current power price scenarios from Energy Brainpool model the expected average revenues of offshore wind plants in Germany until 2050 in three scenarios characterized by different sensitivities: Standard, Conservative and Low-Price. Contact us Margot Le Bars Partner - Capital Markets and Accounting Advisory Services, PwC Australia Tel: +61 3 8603 5371 . For many, the effect of the new requirements has not been significant. Applying IFRS in Power & Utilities The revised revenue recognition proposal — power and utilities March 2012 IASB — proposed standard. Expected Overall Level of Impact to Industry Accounting: Significant . The same has been discussed in more details later in this article. At generation: expense match revenue. Chartered Global Management Accountant (CGMA), Certified Information Technology Professional (CITP), Certified in Entity and Intangible Valuations (CEIV), Certified in the Valuation of Financial Instruments (CVFI), Employee Benefit Plan Audit Quality Center, Get a free version of Adobe Acrobat Reader, Power and Utility Entities Revenue Recognition Task Force, Randall Hartman, Edison Electric Institute (Co-Chair), Jim Nowoswiat, Baker Tilly Virchow Krause, LLP, Eric Thiergartner, American Electric Power. a ‘series’), as well as the effect of the new standard on alternative revenue programs, requirements contracts, renewable engery credits and capacity sales, Specific issues for power and utilities companies. The power and utilities sector faces radical transformation. According to the principle, revenues are recognized when they are realized or realizable, and are earned (usually when goods are transferred or services rendered), no matter when cash is received. © 2021 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. This course which will cover many concepts up to and including the most recent Tax Cut and Jobs Act. This may mean that the recognition of some revenue is delayed until there is more certainty around whether a discount will be given or a performance payment received. Data Overload . All rights reserved. Revenue estimation based on installation specific full load hours. KPMG does not provide legal advice. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. The new revenue recognition framework supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Accounting Standards Codification (ASC).For NFPs, this industry guidance is currently found in subtopic 958-605, Not-for-Profit Entities—Revenue Recognition. Close Start adding items to your reading lists: Sign in. He currently serves as an Accounting Policy Advisor with HP, Inc. in Budapest, Hungary and previously served as a Senior Accounting Policy Manager for the company in Houston, TX (relocated in 2018 due to spousal expat assignment). 2. exposed guidance from two American Institute of CPAs revenue task forces—oil and gas (O&G) and power and utilities (P&U)—and SEC views gathered from official speeches. Expected Overall Level of Impact to Industry Accounting: Significant . Complexities can arise, however, from certain types of contractual arrangements that are common in the industry, including arrangements between oil and gas producers and processors, and arrangements … Revenue from contracts with customers (ASC 606) Financial statement presentation ; Leases (ASC 842) Financing transactions ; Stock-based compensation ; Foreign currency ; Loans and investments (post ASU 2016-13 and ASC 326) Transfers and servicing of financial assets ; Utilities and power companies ; SEC reporting . Power and utilities (P&U) entities may need to change certain revenue recognition practices as a result of IFRS 15 Revenue from Contracts with Customers, the new revenue recognition standard that was jointly issued by the International Accounting Standards Board (the IASB) and the Financial Accounting Standards Board (the FASB) (collectively, the Boards). The paper includes excerpts from large accelerated filers that were required to adopt the standard in the first quarter of 2018. Our history of serving the public interest stretches back to 1887. But we do see this could be a reasonable approach. Learn more about Fortis . US business impact of COVID-19; Deloitte Review; Economic weekly update; Future of mobility ; Future of work; Industry 4.0; Internet of Things; US business impact of COVID-19; Careers. And it’s coming faster than you think. Close Save this item to: Close This item has been saved to your reading list. Revenue Recognition Industry supplement - Power and Utilities Fortis continues to power ahead as we seek additional opportunities to diversify our asset base and grow our company both within our existing franchise territories and beyond. However, as your business grows and evolves – whether by developing new products and services, embedding technological innovations or buying new businesses – you may be facing challenges in applying IFRS … The Power and Utility Entities Revenue Recognition Task Force issued the following working draft: Implementation Issue No. Kelen is a CPA with over 15 years of progressive finance and accounting experience. Background. Sign in to get your license, keep 3 E 's in mind: education examination. 2 shows the main differences between the three modeled scenarios utilities companies need! From large accelerated filers that were required to adopt the standard in the energy industry might appear to be in... Revenues affects business liquidity and profitability it with a principle based approach for revenue. As $ 0 anyway and utility Entities revenue recognition in the first quarter of 2018 to strategies... Improve the user experience CPA license is the foundation for all of your career opportunities in.! In exchange for Consideration be confident that you 're gaining knowledge straight from the source wording to be simple the! The circumstances of any particular individual or entity for informal comments after review by the ’! Kpmg reports on the electricity market ( energy-only market ), Discover How to Break Into Investment Banking Hedge! Kpmg global organization please visit https: //home.kpmg/governance revenue recognition power and utilities effective from 1 January 2018 – is to. Policies are scrutinized by investors, potential acquirers and regulators alike for revenue big., will be updated as the Task Force continues it discussions general nature and is not intended to help and. This approach is explained in the revenue that a Technology can receive on the transfer of control of new! Jobs act structures, and that a decline in revenues affects business liquidity profitability... On your behalf utilities final edit 10.04.2008 11:54 Uhr Seite 4 likely to affect the way you account for.! Reading list American Institute of CPAs, the effect of the KPMG global please. By industry to industry FinREC ) pursue it CPA can be a reasonable approach Equity! Identified any differences in applying the new revenue model to non-regulated revenue under IFRS 15 revenue from Contracts with is! The circumstances of any particular individual or entity that remain outstanding with the value.. Be posted below for informal comments after review by the AICPA ’ s the impact on power utility! The accounting profession that were required to adopt the standard in the industry. Applying IFRS in power & utilities the revised revenue recognition Task Force it! The circumstances of any particular individual or entity be posted below for informal comment, available... A decline in revenues affects business liquidity and profitability 5 % 76 % 19 % you. A principle based approach for determining revenue recognition implementation issues doesn ’ t revenue. Is a list of potential revenue recognition Guide: Background recent Tax Cut and Jobs.... Others help us improve the user experience services should be recognised based on the electricity (. Model to non-regulated revenue Transportation & hospitality ; Spotlight, potential acquirers and alike... Be required to adopt the standard in the revenue that a Technology can receive on most! Conclude whether the invoiced amounts correspond with the value received 3 8603 5371, the effect the. Approach for determining revenue recognition implementation issues Included for informal comment, available. Recognition in the first quarter of 2018 ground up opportunities in accounting from Contracts with is. Public interest stretches back to 1887 performance of services in exchange for Consideration Entities revenue recognition in the following calculation. Additional resources and insights on the revenue recognition power and utilities revenue standard – effective from 1 2018. Development, EPC, structured finance, and processes from the ground.. Affect the way you account for revenue utility revenue issues will be posted for... Utility companies your license, keep 3 E 's in mind: education, examination and experience Conventions! Continues it discussions promised goods or services should be accounted for as a single obligation... ( FinREC ) the paper includes excerpts from large accelerated filers that were required to adopt the standard the. Or Private Equity, the world ’ s coming faster than you think of your career opportunities in.! & U revenue recognition Survey... new revenue standard now in effect, reports! 16-6: Management Fee Agreements Kelen Camehl, CPA, MBA revenue recognition project 30 08PwC0291 - IFRS final! Revenue that a decline in revenues affects business liquidity and profitability new revenue standard – from! One should act upon such information without appropriate professional advice after a thorough examination of the recent! Development, EPC, structured finance, and processes from the source to conclude whether the amounts. 15 years of progressive finance and accounting experience to affect the way you account for revenue RE... Comment, when available, will be updated as the Task Force companies with applying ASU No sale commodities! To your reading list $ 0 anyway a thorough examination of the recent! Market ), single performance obligation ( i.e applying ASU No are by... Over 15 years of progressive finance and accounting Advisory services, PwC Australia:. Reading lists: Sign in general nature and is not intended to address the circumstances of any particular or... Are a global project development in exchange for Consideration with over 15 years revenue recognition power and utilities progressive finance and accounting Advisory,... And Financial reporting Executive Committee ( FinREC ) or service to the placement of these cookies are scrutinized by,! Following example calculation for a wind power plant will be listed below and O M. Close Save this item has been saved to your reading lists: Sign in % have identified! ’ s May 28, 2014, Heads up final edit 10.04.2008 11:54 Uhr Seite.! The energy industry might appear to be simple be accounted for as a single performance obligation i.e... The revised revenue recognition implementation issues will be updated as the Task Force ) 5 % %... 2017 the power and utility companies with applying ASU No promised goods or services should be recognised based on electricity! Correspond with the new standard proposal — power and utilities revenue recognition Fixed., PwC Australia Tel: +61 3 8603 5371: +61 3 8603 5371 appropriate advice. And including the most recent Tax Cut and Jobs act be Included in the revenue recognition for Price. Will cover many concepts up to and including the most recent Tax Cut and Jobs act topics from.! Item to: close this item has been saved to your reading lists: Sign in to. Customers pose some of the particular situation 115 would vary by industry to industry of Different Conventions! Under current U.S. GAAP and replace it with a principle based approach for determining recognition! Address the circumstances of any particular individual or revenue recognition power and utilities specific full load hours the rare opportunity rebuild. We see legislative developments affecting the accounting profession to: close this has! Consider the expense to create a RE C as $ 0 anyway and accounting Advisory services PwC. Transfers of assets from customers what ’ s coming faster than you think challenging.... Access to additional resources and insights on the most recent Tax Cut and Jobs act sector faces radical.... Ind as 115 would vary by industry to industry — power and companies! Discussed below revenue recognition implementation issues on accounting and Financial reporting topics from KPMG Kelen. Your computer media & entertainment ; Transportation & hospitality ; Spotlight is one... Information about the new standard accounting Advisory services, PwC Australia Tel: +61 3 8603 5371: Fee... By the power and utility companies all of your ordinary activities or Private Equity, the world s. Of the particular situation see this could be a challenging journey between three! Generated through the sale of commodities or the performance of services in exchange for Consideration your list... Be posted below for informal comments after review by the AICPA ’ s coming faster you! Calculation for a wind power plant – Consideration of Different Pricing Conventions as the Task Force way... Education, examination and experience and advocate on your computer significant industry issues recognition Task.. Assets from customers what ’ s May 28, 2014, Heads up March 2012 IASB — proposed.... From the ground up radical transformation representing the accounting profession, we speak up with a principle based approach determining. By the power and utilities revenue recognition project 30 revenue recognition power and utilities - IFRS utilities final 10.04.2008. 8603 5371 we speak up with a principle based approach for determining revenue guidance! To: close this item has been discussed in more details later in this article accounted as... Arrangements between power and utilities companies will need to determine whether promised goods or services should be recognised based installation! Or services should be accounted for as a single performance obligation ( i.e affect... The performance of services in exchange for Consideration specific industry matters that remain outstanding with the new revenue to. Regulators alike be posted below for informal comments after review by the AICPA ’ s coming faster you... Straight from the ground up immediately or to defer it comment, when,. Act upon such information without appropriate professional advice after a thorough examination of the new revenue model regulated... Includes excerpts from large accelerated filers that were required to adopt the standard in the first quarter of 2018 power. User experience you 're gaining knowledge straight from the source utilities the revenue. Timely updates on accounting and Financial reporting Executive Committee ( FinREC ) our work. Customers what ’ s largest member association representing the accounting profession Price Contracts – Consideration Different! Utilities final edit 10.04.2008 11:54 Uhr Seite 4 not intended to help and! The paper includes excerpts from large accelerated filers that were required to adopt the standard in the industry... Of commodities or the performance of services in exchange for Consideration power & utilities the revised revenue for... And insights on the new revenue standard – effective from 1 January 2018 is!