Distributed renewable generation, new digital technologies and changing consumer expectations are creating a new energy world that is more complex, competitive and challenging. Projects in the procurement phase are particularly vulnerable to the impacts of COVID-19, which is likely to increase prices due to supply shortages, impacting profitability. This message will not be visible when page is activated. The utilities sector is a category of stocks for companies that provide basic services including natural gas, electricity, water, and power. IAS 39, Financial Instruments: Recognition and Measurement, to commodity purchases and sales. We are pleased to present our 13th annual Accounting, Financial Reporting, and Tax Update for the power and utilities (P&U) industry. COVID-19 impact on the power, utilities, and renewables industry has been saved, COVID-19 impact on the power, utilities, and renewables industry has been removed, An Article Titled COVID-19 impact on the power, utilities, and renewables industry already exists in Saved items. PwC’s Complex Accounting & Regulatory Solutions practice is here to help companies in the energy, power and utilities industries manage regulatory risk and help solve complex accounting problems related to regulatory accounting. In our April 2020 update, we examine some of your most top of mind issues, including these listed here. Our seasoned team has deep experience working with regulated entities and their regulators. See Terms of Use for more information. This box/component contains JavaScript that is needed on this page. Please enable JavaScript to view the site. Our extensive library of publications provides the means to help you gain a better understanding of the principles of International Financial Reporting Standards (IFRS), as well as IFRS for the UK and UK GAAP. As the impact of the pandemic evolves, many entities are experiencing conditions often associated with a general economic downturn, including, but not limited to, financial market volatility and erosion of market value, deteriorating credit, liquidity concerns, further increases in government intervention, increasing unemployment, broad declines in consumer discretionary spending, increasing inventory levels, reductions in production because of decreased demand and supply constraints, layoffs and furloughs, and other restructuring activities. COVID-19 is expected to impact both regulated and unregulated operations and the magnitude of the impacts will depend largely on the length and severity of the economic downturn experienced in impacted regions. Adapting to a new reality: European Power & Utilities Report – Q2 2020 COVID-19: a new reality for Energy and Utilities Plugged In: Forecasting FP&A impacts of COVID-19 on utility companies And it’s coming faster than you think. The COVID-19 pandemic continues to affect major economic and financial markets, and virtually all industries are facing challenges associated with the economic conditions resulting from efforts to address it. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. These contracts will cover inputs for power generation such as gas, oil and coal, as well as electricity and gas sales. Distributed renewable generation, new digital technologies and changing consumer expectations are creating a new energy world that is more complex, competitive and challenging. We have also seen projects being placed under pressure to use more exp… Thu, Jan 23, 2020 - Fri, Jan 24, 2020 Seattle, USA April 2020. Set preferences for tailored content suggestions across the site, COVID-19 Power and Utilities accounting and reporting update, Complex Accounting & Regulatory Solutions. He has more than 35 years of experience with the energy industry, including financial statement a... More, James is a member of the Accounting Services group in Deloitte & Touche LLP's national office, primarily focused on financial instrument issues and lease accounting. Power and utilities companies will need to determine whether promised goods or services should be accounted for as a single performance obligation (i.e. As a result, unique accounting and financial reporting considerations have emerged for companies within the sector. Do not delete! Check out Deloitte Power & Utilities Accounting, Financial Reporting and Tax Update Hyatt Regency O Dates Location Schedule Registration Agenda Reviews Exhibitor list. But, even the best thought-out and thoroughly tested business... Accounting for CARES Act program, including loans and tax changes, among other types of relief. Renewables, distributed generation, and smart grids demand new capabilities and are triggering new business models and regulatory frameworks. As a result, unique accounting and financial reporting considerations have emerged for companies within the sector. In many markets, such directives have directly impacted local utility providers as governments attempt to provide financial relief to citizens through measures including shutoff moratoriums and cessation of late payment fees. *Please note that Financial services industry in Nigeria: Business Report 2020 is a half ready publication. Discover Deloitte and learn more about our people and culture. To help you shore up your company’s response, we’ve summarized some of the most common and significant issues that power and utility companies should consider as they finalize their financial reporting for 2019 and prepare their first quarter 2020 financial statements. Social login not available on Microsoft Edge browser at this time. This article discusses certain industry-specific accounting and financial reporting considerations related to the COVID-19 pandemic and is organized as follows: Entities must carefully consider their unique circumstances and risk exposures when analyzing how recent events may affect their financial reporting. The digital revolution is coming to the power industry. As the U.S. power and utilities industry continues to transform, more flexible regulatory initiatives may bring new opportunities. Our industry continues to face changing markets, new legislation, environmental initiatives, regulatory pressures, and emerging businesses and technologies. The power and utilities industry is expected to lead this transition, as the new plan envisions the industry achieving an even more ambitious target of zero emissions by 2035. The economic impact of COVID-19, combined with Federal, State and Local government responses, have created an unprecedented environment for the power and utilities industry. Combined Management Report A.1ganization of the Siemens Group Or and basis of presentation 2 A.2 Financial performance system 3 A.3 Segment information 6 A.4 Results of operations 18 A.5 Net assets position 22 A.6 Financial position 23 A.7 Overall assessment of the economic position 27 A.8 Report on expected developments and associated material opportunities Specifically, financial reporting and related financial statement disclosures need to convey all material current or potential effects of the COVID-19 pandemic. A podcast by our professionals who share a sneak peek at life inside Deloitte. 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