Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 157

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 1
Chunk 157
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 of accounting.  Under the composite method, assets with similar economic characteristics are grouped and depreciated as one asset.  Depreciation is generally computed on a straight-line basis over the estimated service lives of the various classes of assets.  The estimation of asset useful lives requires management judgment, supported by external depreciation studies of historical asset retirement experience.  Depreciation rates are determined based on external depreciation studies that are updated approximately every five years, with the latest study implemented during the first quarter of 2022.  Depreciation expense was $484 million and $463 million for the three months ended June 30, 2025 and 2024, respectively.  Depreciation expense was $1.4 billion for both the nine months ended June 30, 2025 and 2024.  See Note 7 — Plant Closures for a discussion of the impact of plant closures.

 2.  Impact of New Accounting Standards and Interpretations     

The following accounting standards or rules have been issued but as of June 30, 2025, were not effective and have not been adopted by TVA: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 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 TVAAnnual disclosures to be adopted for the fiscal year ending September 30, 2025 and interim period disclosures to be adopted beginning October 1, 2025.Effect on the Financial Statements or Other Significant MattersThe adoption of this standard will result in TVA including the additional required disclosures, and TVA does not expect an impact on its financial condition, results of operations, or cash flows.   Enhancement and Standardization of Climate-Related Disclosures for InvestorsDescriptionIn March 2024, the Securities and Exchange Commission ("SEC") adopted its climate-related final rule (SEC Release No