Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 98

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 8
Chunk 98
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 to all prior periods presented in the financial statements.Effective Date for TVAFiscal year beginning October 1, 2027, and interim periods beginning October 1, 2028.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.Accounting and Disclosure of Costs Related to Internally Developed SoftwareDescriptionThis guidance amends the accounting for and disclosure of costs related to internally developed software, eliminating project stages, clarifying significant development uncertainty by requiring costs to be recognized only when uncertainty is resolved, and aligning capitalization rules with those for externally sold software.  Key changes include the elimination of distinct project stages for development, a redefined meaning of probable as likely, and requirements to assess significant development uncertainty for all software projects to determine when to capitalize costs.  In addition, the guidance specifies that the property, plant, and equipment disclosure requirements shall be applied to all capitalized software costs.  The amendments are effective for all public entities for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years.  Upon adoption, a public entity may apply the guidance using a prospective, retrospective, or modified transition approach.Effective Date for TVAThe new standard is effective for TVA's interim and annual reporting periods beginning October 1, 2028.Effect on the Financial Statements or Other Significant MattersThe adoption of this standard is not expected to have a material impact on TVA’s financial condition, results of operations, cash flows, or disclosures.

3.  Restructuring

TVA’s demand continues to grow, driving the need for significant future capital investment.  TVA must continue to drive efficiencies and cost savings across the enterprise to provide affordable, reliable electricity, while funding the capital investment needed to meet growing demand.  This effort has evolved into an Enterprise Transformation Program ("ETP") focused on improving financial health, enhancing asset performance, automating processes, optimizing third-party spend through supply chain, and making the workforce more efficient.  As part of these efforts, certain employees are eligible for severance payments.  These amounts are recognized in Operating and maintenance expense on TVA's Consolidated Statements of Operations in the period incurred.  Severance costs that have been incurred but not paid are included in Accounts payable and accrued liabilities on TVA's Consolidated Balance Sheets.  The organizational design efforts associated with the ETP were complete as