PricewaterhouseCoopers (PwC) released its 2013 “Guide to Accounting for Utilities and Power Companies,” a detailed and thorough report that delves into topics that power and utility companies should consider when preparing financial statements in accordance with accounting principles. Intended to be used as a support guide, users can find relevant accounting literature that includes specific questions and examples to help illustrate the methodology.
The report features accounting and financial reporting considerations in areas such as commodity contract accounting (including leasing, derivatives, natural gas, emission allowances and renewable energy credits), as well as other areas of consideration in accounting such as:
· Power-related investments: business combinations, investments in power plants entities and consolidation of variable interest entities;
· Nonfinancial assets and liabilities: inventory, property, plant and equipment, asset retirement, nuclear power plants and government grants; and
· Regulated operations: utility plant, income taxes and business combinations.