Revenue for power and utilities companies

KPMG’s insights on ASC 606 implementation. With the new revenue standard now in effect, KPMG reports on the most significant industry issues.

Applicability

Applying the new revenue recognition standard

• Companies in the power and utilities industry

Relevant dates

Mandatory effective dates and early adoption provisions:

Key impacts

• 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. a ‘series’), as well as the effect of the new standard on alternative revenue programs, requirements contracts, renewable engery credits and capacity sales

Report contents

• Specific issues for power and utilities companies
• Expanded disclosures
• Effective dates and transition
• Impact on the organization

Related content

• Handbook: Revenue recognition