Here’s 5 reasons to use regulatory accounting for recovering impairment losses
- Jul 21, 2021 12:37 pm GMT
Change is in the Air
The overall energy industry power supply mix is slowly (?) changing, from traditional fossil fuels to renewables and more "clean" fuels. Pricing in some energy markets shows that some traditional power supply assets are not marketable, i.e., the price of power production exceeds the market price.
Evaluating these resources leads to the conclusion that the assets are "impaired" or no longer viable for use, which from an accounting perspective means their value should be written off and recognized as a loss in the current period. This is formally known as an impairment. Impairment accounting standards are covered in ASC 360 and GASB 42.
No discussions yet. Start a discussion below.
Get Published - Build a Following
The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.
If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.