Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 96

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 8
Chunk 96
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 and repairs related to its property, plant, and equipment on the Consolidated Statements of Operations as they are incurred except for the recording of certain regulatory assets for retirement and removal costs.  

2.  Impact of New Accounting Standards and Interpretations 

The following are accounting standard updates issued by the Financial Accounting Standards Board ("FASB") that TVA adopted during 2025:Improvements to Reportable Segment DisclosuresDescriptionThis guidance improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.  The amendments require a public entity to disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the Chief Operating Decision Maker ("CODM") and included within each reported measure of segment profit and loss.  It also requires a public entity that has a single reportable segment to provide all of the disclosures required by the amendments and all existing segment disclosures.  The amendments are effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024.  Upon adoption, a public entity should apply the amendments retrospectively to all prior periods presented in the financial statements.Effective Date for TVATVA adopted the guidance on September 30, 2025, and applied it retrospectively.Effect on the Financial Statements or Other Significant MattersThe adoption of this standard resulted in expanded disclosures of significant segment expenses and enhanced qualitative information about the CODM's title and the use of net income as the segment profit measure.  See Note 25 — Segment Reporting for further details.Measurement of Credit Losses for Accounts Receivable and Contract AssetsDescriptionThe amended guidance simplifies the estimation of credit losses on current accounts receivable and current contract assets arising from transactions accounted for under the accounting guidance for Revenue from Contracts with Customers.  The amendments allow all entities to elect a practical expedient to assume that the current conditions as of the balance sheet date will remain unchanged for the remaining life of the asset when developing a reasonable and supportable forecast as part of estimating expected credit losses on these assets.Effective Date for TVAThis new standard is effective for TVA’s interim and annual reporting periods beginning October 1, 2026.  Early adoption is permitted, and TVA adopted this standard on September 30, 2025, on a prospective basis.Effect on the Financial Statements or Other Significant MattersAdoption of this standard did not have a material impact on TVA’s financial condition, results of operations, or cash flows.The following