Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 242

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 2
Chunk 242
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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. 34-99678, The Enhancement and Standardization of Climate-Related Disclosures for Investors).  In April 2024, the SEC voluntarily stayed the new rule as a result of pending legal challenges, in March 2025, the SEC withdrew its legal defense of the rule, and in April 2025, the United States Court of Appeals for the Eighth Circuit suspended the litigation over the validity of the rule.  The new rule, if implemented as adopted, will require registrants to provide certain climate-related information in their annual reports and registration statements and will also require the dollar impact of severe weather events and other natural conditions, as well as amounts related to carbon offsets and renewable energy credits or certificates, to be disclosed in the audited financial statements in certain circumstances.  If the new rule is implemented as adopted, the disclosure requirements will begin phasing in for fiscal years beginning on or after January