US GAAP for Rate-regulated Utility Companies (2 days)

Introduction

The business activities of utility companies are essentially the same as those of other companies that manufacture or distribute a product or provide a service. However, the regulated status of utility companies creates operational and accounting situations particular to these companies. AS C 980 refers to the "economic dimension" which regulation brings to utilities and the need for accounting to reflect that dimension.

Learning Objectives

• Comply with the accounting and disclosure requirements for Rate-regulated utility companies
• Recognize and appropriately account for regulatory assets and liabilities
• Understand accounting requirements for energy contracts and other derivatives
• Apply the rules for power supply contracts
• Determine when and how to account for depreciation and impairments
• Learn about presentation and disclosure requirements in financial statements

Who Should Attend

This course is designed for accountants or financial professionals who seek a comprehensive course in the technical accounting for utility companies.

Topics

• Introduction and regulatory framework
• Regulatory accounting
  • Regulatory assets
  • Regulatory liabilities
  • Deferred pension and other postretirement benefit costs
  • Derivatives
  • Other regulatory accounts
  • Alternative revenue programs and ASC 980-605-25
  • Revenue subject to refund
  • Intercompany profits
• Utility plant
  • Capitalization issues
  • Allowance for funds used during construction
  • Construction work in progress in Rate Base
  • Depreciation
  • Impairment of long-lived assets
  • Asset retirement obligations (AROs)
  • Environmental obligations
  • Nuclear matters
• Other utility-specific issues regarding assets and liabilities
  • Investments in nuclear decommissioning trust funds
  • Emission allowances and renewable energy credits
  • Sale and leaseback transactions
  • Income taxes
  • Goodwill
• Lease Accounting
  • Impact of Regulation on Lease Expense Recognition
  • Presentation of lease expenses
• Power supply contracts
  • Overall accounting framework
  • Other issues and guidance
• Accounting issues for derivatives instruments and energy trading contracts
  • Gross versus net presentation
  • Weather derivatives
  • Financial transmission rights
• Financial statement presentation
  • Income statement
  • Balance sheet
  • Statement of cash flows
  • Notes to financial statements and other classification matters
  • Accounting changes
  • Subsequent events
• FERC-related accounting issues
  • Internal use computer software

Teaching Method

• Group live instruction with interactive participation encouraged
• Identification of critical issues in accounting for Rate-regulated utility companies
• Succinct examples and cases that illustrate classification and accounting for energy-related transactions
• Presentation and discussion of financial statement disclosures
• Exercises to illustrate the accounting for risk management transactions (e.g. hedging)
• All participants receive a comprehensive binder containing copies of the presentation slides, hand-outs and other course materials

Instructors

Venue

CPE/CPD Accreditation

IASeminars is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org .

 

Field of study: Accounting

Prerequisites

Intermediate understanding of accounting principles based on US GAAP. No other advance preparation is required for this course.