PwC is pleased to offer our updated Utilities and power companies guide. This guide provides accounting guidance for reporting entities in the utility and power industry to consider when preparing financial statements in accordance with US GAAP.
This guide summarizes the applicable accounting literature, including relevant references to and excerpts from the FASB’s Accounting Standards Codification (the Codification) and standards issued by the IASB. It also provides our insights and perspectives, interpretative and application guidance, illustrative examples, and discussion on emerging practice issues.
References to US GAAP and International Financial Reporting Standards
Definitions, full paragraphs, and excerpts from the FASB’s Accounting Standards Codification and standards issued by the IASB are clearly labelled. In some instances, guidance was cited with minor editorial modification to flow in the context of the PwC Guide. The remaining text is PwC’s original content.
References to other PwC guidance
This guide provides general and specific references to chapters in other PwC guides to assist users in finding other relevant information. References to other guides are indicated by the applicable guide abbreviation followed by the specific section number. The other PwC guides referred to in this guide, including their abbreviations, are:
  • Business combinations and noncontrolling interests (BCG)
  • Consolidation (CG)
  • Derivatives and hedging (DH)
  • Fair value measurements (FV)
  • Financial statement presentation (FSP)
  • Financing transactions (FG)
  • Income taxes (TX)
  • Inventory (IV)
  • Leases (LG)
  • Loans and investments (LI)
  • Property, plant, equipment and other assets (PPE)
  • Revenue from contracts with customers (RR)

Summary of significant changes
Following is a summary of the noteworthy revisions. Further, updated chapters will now also include the related discussion of the presentation and disclosure guidance to make it easier to find. Additional updates may be made to keep pace with significant developments.
Revisions made in February 2024
UP 5, Natural Gas
  • UP 5 was updated to improve readability and comprehension.

Revisions made in January 2024
UP 12, Plant
  • UP 12 was updated to improve readability and comprehension.
UP 14, Nuclear power plants
  • UP 14 was updated to reflect the guidance in ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, and ASU 2016-13, Measurement of Credit Losses on Financial Instruments.
UP 20, Regulated operations: Business combinations
  • UP 20 was updated to improve readability and comprehension.

Revisions made in November 2023
UP 9, Investments in power plant entities
  • UP 9 was updated to reflect additional considerations related to ASC 323-740, Proportional amortization method.
UP 18, Regulated operations: utility plant
  • UP 18 was updated to improve readability and comprehension.

Revisions made in August 2023
UP 16, Government incentives
  • UP 16 was updated to remove the general considerations for accounting for government grants as the related content is now included in PwC's In depth 2023-04.
UP 17, Regulated operations
  • UP 17 was updated to improve readability and comprehension.

Revisions made in April 2023
UP 2A, Leases (ASC 840)
  • UP 2A, which provided guidance under ASC 840, Leases, was removed. UP 2 reflects current leasing guidance under ASC 842, Leases.
UP 15, Joint plant and similar arrangements
  • UP 15 was updated for ASC 842, Leases, and to reflect revisions to the guidance applicable when accounting for disposal of a joint plant interest.

Revisions made in March 2023
UP 2, Leases (ASC 842)
  • UP 2 was updated for ASC 842 to provide guidance on evaluating power purchase and other common arrangements in the industry, including land easements and battery storage projects, to determine whether they are or contain leases.
  • This new chapter also addresses other considerations relevant to leases of power plants, including allocating contract consideration, lease classification, and lease modifications and remeasurements.

Revisions made in February 2023
UP 1, Commodity contract accounting framework
UP 8, Business combinations
  • UP 8 was removed as the related content is now included in BCG.
UP 13, Asset retirement obligations
  • UP 13 was removed as the related content is now included in PPE 3.

This publication has been prepared for general informational purposes, and does not constitute professional advice on facts and circumstances specific to any person or entity. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication. The information contained in this publication was not intended or written to be used, and cannot be used, for purposes of avoiding penalties or sanctions imposed by any government or other regulatory body. PricewaterhouseCoopers LLP, its members, employees, and agents shall not be responsible for any loss sustained by any person or entity that relies on the information contained in this publication. Certain aspects of this publication may be superseded as new guidance or interpretations emerge. Financial statement preparers and other users of this publication are therefore cautioned to stay abreast of and carefully evaluate subsequent authoritative and interpretative guidance.
The FASB Accounting Standards Codification® material is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, and is reproduced with permission.
This publication contains copyright © material and trademarks of the IFRS Foundation®. All rights reserved. Reproduced by PricewaterhouseCoopers LLP with the permission of the IFRS Foundation. Reproduction and use rights are strictly limited. For more information about the IFRS Foundation and rights to use its material please visit www.ifrs.org.
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