Deloitte Power Purchase Agreement

This is a built-in Microsoft Office presentation that is supported by Office Online. The effects of the new leasing standard on the electricity and supply sector have been reduced The effects of the new leasing accounting standard have a significant impact on the energy and supply sector. Learn more about industry thoughts on the new standard and how we can help you implement them. The new accounting standard AASB 16 may require APP buyers to change the way they report ATPs. As a general rule, operating leases will now be a « right of use » with a corresponding rental liability. They will now be « on the balance sheet ». As non-state energy and utility companies implement the standard, they can benefit from the industry views we have included in this spotlight. The changes introduced by the new leasing standard could have a significant impact on regulated utilities and other energy and supply (P&U) sectors, as they make full use of assets under contracts that can be considered leasing contracts. This spotlight discusses the impact of the standard on P&U businesses, including power purchase agreements, transmission and storage contracts, fattening facilities and easements, and what companies should consider when deciding to apply the leasing balance sheet in accordance with ASC 842. The AER has issued its third declaration of expectation to energy companies during Covid 19. This declaration will apply from 1 November 2020 and will continue until 31 March 2021 and possibly beyond. In the new statement of expectation, the AER notes that the Covid 19 pandemic continues to have a significant impact on the Australian community, and that many people are affected by dramatic changes in their lives, businesses, incomes and employment arrangements.

The AER notes that Covid is suing 19 Deloitte Touche Tohmastu. Leases: A Guide to AASB 16, p. 100. For lessors, IFRS 16 introduces a single accounting treatment, the right-of-use approach and a rental liability. the right to obtain, in the essential part, all the economic benefits associated with the use of the identified asset; and the right to direct the use of the identified asset (AASB, Appendix B9). Contracts for the sale of solar electricity are on the rise in Australia. Solar PPAs are primarily regulated by AER`s (and in Victoria, the ESC) Retail and Network Exemption Framework. This presentation is a follow-up to our previous webinar on SAs. We address two current ppAs compliance challenges for solar PPAs: the new leasing accounting standard and measurement requirements. Our services include assistance in accounting interpretation, advice and recommendations in the various stages of standard implementation, supplier selection, process reviews, system changes including the development of system business requirements, implementation of new systems and tax analyses…