Industry Supplement | March 2018

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.


Applying the new revenue recognition standard

  • Companies in the power and utilities industry

Relevant dates

Mandatory effective dates and early adoption provisions:

Effective date:



Annual periods –
Fiscal years beginning after

Interim periods –
In fiscal years beginning after

Early adoption allowed in fiscal years beginning after

Public business entities

and certain not-for-profit entities:

December 15, 2017

December 15, 2017

December 15, 2016

All other entities:



December 15, 2018

December 15, 2019

December 15, 2016


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

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