General Accounting
Harmony in Allocating Inter-Departmental Power and Utilities Costs with the Three-Point Formula
Here is the Three-point formula! This article will discuss how using a cost allocation method based strictly on math, and metrics can smooth budget discussions and bring equitable allocations to your business units (doesn't sound exciting, but you'll be glad you read on). Here is the Three-point formula!
Locked into a Municipal Chart of Accounts, an Electric Utility Needed Some Changes to Make it Work for Financial Management
Utilities find that the standard chart of accounts for a municipal general fund doesn’t meet their needs. General fund accounting is based on a flow of funds basis, while utilities use the accrual basis of accounting like a private sector business. The general fund chart of accounts is not a good fit.
Here is one utility’s approach to making the municipal chart of accounts string usable to meet the utility’s reporting and management needs.
Impaired Power Plant Asset With Attached Debt? Use ASC 360 and ASC 980 in Tandem
ASC 360 defines the impairment rules for utility assets under FASB. Asset impairment evaluation is the new way of life for electric utilities. ASC 360 for Impairment Accounting has become a steady part of our utility accounting world.
The electric utility power supply model is rapidly changing, as technological and political forces change the industry power supply framework. These changes require electric utilities to take a close look at asset utilization and the long-term viability of current power supply assets. Impairing assets may be a necessary step.