# ASC Topic 980: Regulated Operations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/980/) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T02:27:16.483Z to 2026-09-10T02:28:14.273Z Record version: sha256:0ee96a205a2d6c671be7b6ab5ecb08d231d155619b8d0a99b17bb226823d7935 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 980 provides incremental GAAP for entities whose rates are cost-based and set by an independent regulator, on the theory that the economic effects of rate regulation — not regulation itself — justify departing from general GAAP. Under 980-10, operations meeting all three criteria of 980-10-15-2 (independent third-party regulator sets rates, rates designed to recover the specific entity's costs, and rates can reasonably be charged to and collected from customers) recognize regulatory assets and liabilities when a regulator shifts cost recovery to a different period, treating a recoverable incurred cost like a cost reimbursable under a cost-reimbursement-type contract (980-10-05-5, 05-6). ASC 980-20 is the mirror image: when operations (or a separable portion, such as a jurisdiction or customer class) cease to meet 980-10-15-2, the entity eliminates regulatory assets and liabilities that entities in general could not recognize, leaves plant, equipment, and inventory carrying amounts alone unless impaired under 360-10, and reports the net adjustment in income of the period of discontinuation, separately within continuing operations as an unusual or infrequently occurring item (980-20-40-2, 40-4). The key idea: regulatory assets and liabilities exist only so long as cost-based recovery is probable, and they disappear — through income — when that regulatory support ends. Source downloaded (UTC): 2026-09-10T02:27:16.483Z to 2026-09-10T02:27:45.235Z Record version: sha256:db832df2bca08637f8a5f8f1b1bcf5312f12f53d0d0854ad0b301cf21a329767 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 980-10: Regulated Operations — Overall ### Machine-generated study aids ```json { "summary": "ASC 980-10 sets the overall scope and framework for accounting by entities with rate-regulated operations. Because regulators sometimes allow costs into rates in a period different from when an unregulated entity would expense them, the rate-making process can create assets (regulatory assets), reduce assets, or create liabilities; an incurred cost the regulator permits to be recovered in a future period is accounted for like a cost reimbursable under a cost-reimbursement-type contract (980-10-05-5, 05-6). The Topic applies only to operations meeting the three criteria in 980-10-15-2 and provides incremental industry guidance that overrides conflicting guidance elsewhere in the Codification.", "key_points": [ "The Topic applies to general-purpose external financial statements of operations meeting all three criteria in 980-10-15-2: rates are set or approved by an independent third-party regulator (or an empowered governing board), rates are designed to recover the specific entity's costs, and it is reasonable to assume cost-based rates can be charged to and collected from customers given demand and competition.", "Regulators' inclusion of costs in allowable costs in a period other than when an unregulated entity would expense them can create assets, reduce assets, or create liabilities for the regulated entity (980-10-05-5).", "An incurred cost for which a regulator permits recovery in a future period is accounted for like an incurred cost reimbursable under a cost-reimbursement-type contract (980-10-05-6).", "A regulatory accounting order not tied to rate treatment causes no economic effects and does not justify departing from general GAAP; the economic effect of regulatory decisions, not the mere existence of regulation, is the pervasive factor (980-10-05-7, 05-8).", "If only some of an entity's operations are regulated and meet the criteria, the Topic is applied only to that portion of the operations (980-10-15-4).", "Other Codification Topics still apply to regulated entities, but ASC 980 is applied instead of conflicting provisions—for example, capitalizing R&D costs meeting 980-340-25-1 despite Subtopic 730-10 (980-10-15-5).", "The Topic does not apply to emergency/inflation price controls, to an entity's regulatory (statutory) accounting records, or to contractual arrangements where the government or another party viewed as a regulator is a party to the contract and is the entity's principal customer (980-10-15-7)." ], "categories": [ "Industry-specific", "Recognition", "Subsequent measurement" ], "audience_level": "intermediate", "student_note": "Utilities and similar rate-regulated entities recognize regulatory assets and liabilities that would not exist under general GAAP; the common misunderstanding is thinking any regulatory accounting order justifies deferral—only rate actions with real economic effects (probable future recovery through rates) do.", "related_topics": [ "980-20", "980-340", "980-360", "980-405", "980-605", "730-10" ], "key_concepts": [ "rate-regulated operations", "allowable costs", "regulatory assets and liabilities", "cost-based rates", "cost-reimbursement-type contract analogy", "independent third-party regulator", "accounting orders", "scope criteria" ] } ``` Source downloaded (UTC): 2026-09-10T02:27:16.483Z to 2026-09-10T02:27:16.483Z Record version: sha256:976268c44c48dfbc3e176896b9f388cd782e05a8c2baef5c112549cc8d4f8911 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 980-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/980/10/#00-status) SEC content: no ##### [980-10-00-1](https://asc.understandingaccounting.org/asc/980/10/#980-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:16.483Z to 2026-09-10T02:27:16.483Z Record version: sha256:d0c0fa3f6f05c3766d9179d594af9fd258ffe9b5fcb98f6c832390b9cdc9971b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
980-10-05-1AmendedMaintenance Update 2016-05 (PDF)04/12/2016
980-10-05-1AmendedAccounting Standards Update No. 2014-0905/28/2014
980-10-15-6SupersededAccounting Standards Update No. 2014-1006/10/2014
Source downloaded (UTC): 2026-09-10T02:27:20.595Z to 2026-09-10T02:27:20.595Z Record version: sha256:5d39a77954f64fe8849662139d0fff77d36d973927232070ae267c2de83dcee6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 980-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/980/10/#05-overview-and-background) SEC content: no ##### [980-10-05-1](https://asc.understandingaccounting.org/asc/980/10/#980-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:20.595Z to 2026-09-10T02:27:20.595Z Record version: sha256:dea998efa2438b0d89b7c368ed7f995bd0e557e8a3d271f9ed8ea3df01491059 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Regulated Operations Topic includes the following Subtopics: 1. a Overall 2. b Discontinuation of Rate-Regulated Accounting 3. c Accounting Changes and Error Corrections 4. d Other Assets and Deferred Costs 5. e Intangibles—Goodwill and Other 6. f Property, Plant, and Equipment 7. g Liabilities 8. h Asset Retirement and Environmental Obligations 9. i Contingencies 10. j Debt 11. k Revenue Recognition—Alternative Revenue Programs 12. l Compensation—General 13. m Compensation—Retirement Benefits 14. n Income Taxes 15. o Consolidation 16. oo Derivatives and Hedging 17. p Interest 18. q Leases. ##### [980-10-05-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:20.595Z to 2026-09-10T02:27:20.595Z Record version: sha256:290d60c00ee67101d45433a8ebea9d30fd7772d0fd7dfd72af8179ffa4904bd7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Overall Subtopic provides guidance on the accounting and reporting for entities with regulated operations. #### Effect of Regulatory Accounting ##### [980-10-05-3](https://asc.understandingaccounting.org/asc/980/10/#980-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:20.595Z to 2026-09-10T02:27:20.595Z Record version: sha256:67f87048719ce7263db8766c68a10126821a7851e3f6c7dd57cb5939bf445028 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Regulation of an entity's rates (also referred to as prices) is sometimes based on the entity's costs. Regulators use a variety of mechanisms to estimate a regulated entity's [allowable costs](https://asc.understandingaccounting.org/glossary/a/#allowable-costs "All costs for which revenue is intended to provide recovery. Those costs can be actual or estimated. In that context, allowable costs include interest cost and amounts provided for earnings on shareholders' investments."), and they allow the entity to charge rates that are intended to produce revenue approximately equal to those allowable costs. Specific costs that are allowable for rate-making purposes result in revenue approximately equal to the costs. ##### [980-10-05-4](https://asc.understandingaccounting.org/asc/980/10/#980-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:20.595Z to 2026-09-10T02:27:20.595Z Record version: sha256:6a9dace6da2450212630d4e946d47fa6d678d856ab5abc6d688ca37564360043 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In most cases, allowable costs are used as a means of estimating costs of the period during which the rates will be in effect, and there is no intent to permit recovery of specific prior costs. The process is a way of setting prices—the results of the process are reported in general-purpose financial statements in accordance with the same accounting principles that are used by unregulated entities. ##### [980-10-05-5](https://asc.understandingaccounting.org/asc/980/10/#980-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:20.595Z to 2026-09-10T02:27:20.595Z Record version: sha256:e10da34213499ac425ba99182d109d4cae58c41aa23af86c4279d74f3e6508c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Regulators sometimes include costs in allowable costs in a period other than the period in which the costs would be charged to expense by an unregulated entity. For the regulated entity, that procedure can do any of the following: 1. a Create assets (future cash inflows that will result from the rate-making process) 2. b Reduce assets (reductions of future cash inflows that will result from the rate-making process) 3. c Create liabilities (future cash outflows that will result from the rate-making process). ##### [980-10-05-6](https://asc.understandingaccounting.org/asc/980/10/#980-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:20.595Z to 2026-09-10T02:27:20.595Z Record version: sha256:f473b35ef29749367b1b117f48f2b9fd4d641c71540fd9ce035427a9131e83aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For general-purpose financial reporting, an [incurred cost](https://asc.understandingaccounting.org/glossary/i/#incurred-cost "A cost arising from cash paid out or obligation to pay for an acquired asset or service, a loss from any cause that has been sustained and has been or must be paid for.") for which a regulator permits recovery in a future period is accounted for like an incurred cost that is reimbursable under a cost-reimbursement-type contract. ##### [980-10-05-7](https://asc.understandingaccounting.org/asc/980/10/#980-10-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:20.595Z to 2026-09-10T02:27:20.595Z Record version: sha256:742099fc06e3c5ea73b7b9519dfa40a87b3b57af6379632aec812d91698bad08 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Accounting requirements that are not directly related to the economic effects of rate actions may be imposed on regulated businesses by orders of regulatory authorities and occasionally by court decisions or statutes. This does not necessarily mean that those accounting requirements conform with generally accepted accounting principles (GAAP). For example, a regulatory authority may order an entity to [capitalize](https://asc.understandingaccounting.org/glossary/c/#capitalize "Capitalize is used to indicate that the cost would be recorded as the cost of an asset. That procedure is often referred to as deferring a cost, and the resulting asset is sometimes described as a deferred cost.") and amortize a cost that would be charged to income currently by an unregulated entity. Unless capitalization of that cost is appropriate under this Topic, GAAP requires the regulated entity to charge the cost to current income. ##### [980-10-05-8](https://asc.understandingaccounting.org/asc/980/10/#980-10-05-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:20.595Z to 2026-09-10T02:27:20.595Z Record version: sha256:36c69ebba48b0402da396287c2fb16628e6a7f6f87638ed1fff6fc9ec71c027d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Unless an accounting order indicates the way a cost will be handled for rate-making purposes, it causes no economic effects that would justify deviation from the GAAP applicable to business entities in general. The mere issuance of an accounting order not tied to rate treatment does not change an entity's economic resources or obligations. In other words, the economic effect of regulatory decisions—not the mere existence of regulation—is the pervasive factor that determines the application of GAAP. Source downloaded (UTC): 2026-09-10T02:27:24.100Z to 2026-09-10T02:27:24.100Z Record version: sha256:eb4ef3e5a0051e6c25cd60858b34a8b5c34bec4ec2b8bd5b7908b7e32e09e4a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 980-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/980/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [980-10-15-1](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:24.100Z to 2026-09-10T02:27:24.100Z Record version: sha256:cc586fb7c7692a3296d307dc64e2ab945080159d664260c309be0e20c5440598 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Subtopics within the Regulated Operations Topic only provide incremental industry-specific guidance for the entities defined in this Scope Section, or as further defined in the Scope Sections of the individual Regulated Operations Subtopics. Entities within the scope of this Topic shall also comply with the applicable guidance not included in this Topic. #### Entities ##### [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:24.100Z to 2026-09-10T02:27:24.100Z Record version: sha256:5b2386c508e4ecbf1bfabe9f489b66659e75d9687541ae95c08bd5a89e91fa95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Regulated Operations Topic applies to general-purpose external financial statements of an entity that has regulated operations that meet all of the following criteria: 1. a The entity's rates for regulated services or products provided to its customers are established by or are subject to approval by an independent, third-party regulator or by its own governing board empowered by statute or contract to establish rates that bind customers. 2. b The regulated rates are designed to recover the specific entity's costs of providing the regulated services or products. This criterion is intended to be applied to the substance of the regulation, rather than its form. If an entity's regulated rates are based on the costs of a group of entities and the entity is so large in relation to the group of entities that its costs are, in essence, the group's costs, the regulation would meet this criterion for that entity. 3. c In view of the demand for the regulated services or products and the level of competition, direct and indirect, it is reasonable to assume that rates set at levels that will recover the entity's costs can be charged to and collected from customers. This criterion requires consideration of anticipated changes in levels of demand or competition during the recovery period for any capitalized costs. This last criterion is not intended as a requirement that the entity earn a fair return on shareholders' investment under all conditions; an entity can earn less than a fair return for many reasons unrelated to the ability to bill and collect rates that will recover [allowable costs](https://asc.understandingaccounting.org/glossary/a/#allowable-costs "All costs for which revenue is intended to provide recovery. Those costs can be actual or estimated. In that context, allowable costs include interest cost and amounts provided for earnings on shareholders' investments."). For example, mild weather might reduce demand for energy utility services. In that case, rates that were expected to recover an entity's allowable costs might not do so. The resulting decreased earnings do not demonstrate an inability to charge and collect rates that would recover the entity's costs; rather, they demonstrate the uncertainty inherent in estimating weather conditions. This requirement must also be evaluated in light of the circumstances. For example, if the entity has an exclusive franchise to provide regulated services or products in an area and competition from other services or products is minimal, there is usually a reasonable expectation that it will continue to meet the other criteria. Exclusive franchises can be revoked, but they seldom are. If the entity has no exclusive franchise but has made the very large capital investment required to provide either the regulated services or products or an acceptable substitute, future competition also may be unlikely. ##### [980-10-15-3](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:24.100Z to 2026-09-10T02:27:24.100Z Record version: sha256:72f511e29a2298c376f5c603cbf80b4aa82c4a304956a4bdff25e55e15335675 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In some cases, the rates set by state regulatory agencies are accepted for Medicare and Medicaid reimbursement purposes. There is some disagreement about the extent to which such rates are based on a provider's costs. If regulatory agencies in those states base rates on the provider's costs and adopt a permanent system of regulation, health care providers in those jurisdictions could be subject to the provisions of this Topic. However, the criterion in (c) in the preceding paragraph also would have to be considered to determine whether this Topic applies to the entity. ##### [980-10-15-4](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:24.100Z to 2026-09-10T02:27:24.100Z Record version: sha256:0c48fbd6538a3f2f43cc7474331ae2b182fa9096ab29a94658d2f41a963ddba2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If some of an entity's operations are regulated and meet the criteria of paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2), this Topic shall be applied to only that portion of the entity's operations. ##### [980-10-15-5](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:24.100Z to 2026-09-10T02:27:24.100Z Record version: sha256:a74378f2fc595b4384d2985b05f22842dfc6809b83aa40a9d0d55cfe9696df5f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Guidance in other Codification Topics that applies to entities in general also applies to regulated entities. However, entities subject to this Topic shall apply it instead of any conflicting provisions of other parts of the Codification. For example, a regulator might authorize a regulated entity to incur a major research and development cost because the cost is expected to benefit future customers. The regulator might also direct that cost to be capitalized and amortized as an allowable cost over the period of expected benefit. If the criteria of paragraph [980-340-25-1](https://asc.understandingaccounting.org/asc/340/980/#340-980-25-1) are met, the entity shall [capitalize](https://asc.understandingaccounting.org/glossary/c/#capitalize "Capitalize is used to indicate that the cost would be recorded as the cost of an asset. That procedure is often referred to as deferring a cost, and the resulting asset is sometimes described as a deferred cost.") that cost even though Subtopic 730-10 requires such costs to be charged to income currently. That Subtopic shall still apply to accounting for other research and development costs of the regulated entity, as shall the disclosure requirements of that Subtopic. ##### [980-10-15-6](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:24.100Z to 2026-09-10T02:27:24.100Z Record version: sha256:7ecade0e7054692d7e15e0a267130c559b8f68281cb3d601aa694b910067411b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-10](https://asc.understandingaccounting.org/updates/asu-2014-10/). #### Transactions ##### [980-10-15-7](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:24.100Z to 2026-09-10T02:27:24.100Z Record version: sha256:5ddfd648d624f8f4b3d2cf1e987f66e96966eedd62e60ddc5e9a970315e40c19 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Regulated Operations Topic does not apply to any of the following transactions: 1. a Accounting for price controls that are imposed by governmental action in times of emergency, high inflation, or other unusual conditions, or accounting for contracts in general. However, if the terms of a contract between an entity and its customer are subject to regulation and the criteria of paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2) are met with respect to that contract, the guidance in this Topic shall apply. 2. b An entity's regulatory accounting. Regulators may require regulated entities to maintain their accounts in a form that permits the regulator to obtain the information needed for regulatory purposes. This Topic neither limits a regulator's actions nor endorses them. Regulators' actions are based on many considerations. Accounting addresses the effects of those actions. This Topic merely specifies how the effects of different types of rate actions are reported in general-purpose financial statements. 3. c The criterion in paragraph [980-10-15-2(a)](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2) is intended to exclude contractual arrangements in which the government, or another party that could be viewed as a regulator, is a party to a contract and is the entity's principal customer. Source downloaded (UTC): 2026-09-10T02:27:33.762Z to 2026-09-10T02:27:33.762Z Record version: sha256:8c992cdbebdaef2e099f7051a75b97d30ffbbe07c201907f5fd52f664717d1fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 980-10-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/980/10/#sec-00-status) SEC content: yes ##### [980-10-S00-1](https://asc.understandingaccounting.org/asc/980/10/#980-10-S00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:33.762Z to 2026-09-10T02:27:33.762Z Record version: sha256:69fa124fc9ee668f84b0955eab8d0705069ca71ec42a8bacb439e49fdc762b17 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. No updates have been made to this subtopic. Source downloaded (UTC): 2026-09-10T02:27:36.246Z to 2026-09-10T02:27:36.246Z Record version: sha256:5bd80d9fce828ead4cad249e46998da3daa6bb31dc719ab58ab62c094eea5839 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 980-10-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/980/10/#sec-45-other-presentation-matters) SEC content: yes #### Income Statement Presentation ##### [980-10-S45-1](https://asc.understandingaccounting.org/asc/980/10/#980-10-S45-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:36.246Z to 2026-09-10T02:27:36.246Z Record version: sha256:46abc75a292f189970a8dab1017a9e0c3fa371a4b2999495fbc3e8242053997b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [220-10-S99-2](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-2), Regulation S-X Rule 5-03.1, for the income statement presentation requirements for a public utility company. #### Cost of Power Obtained Under Long-Term Purchase Contracts ##### [980-10-S45-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-S45-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:36.246Z to 2026-09-10T02:27:36.246Z Record version: sha256:a95aab37a9c6d1a1e45af428cc79dc36780ec4575d53aa378e918c460d05299f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [980-10-S99-1](https://asc.understandingaccounting.org/asc/980/10/#980-10-S99-1), SAB Topic 10.D, for SEC Staff views on the presentation of cost of power obtained under long-term purchase contracts. Source downloaded (UTC): 2026-09-10T02:27:40.242Z to 2026-09-10T02:27:40.242Z Record version: sha256:121d2b629a60a511ea4131201e6e695cf114f89d03622e668b54106f90916416 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 980-10-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/980/10/#sec-50-disclosure) SEC content: yes #### Cost of Power Obtained Under Long-Term Purchase Contracts ##### [980-10-S50-1](https://asc.understandingaccounting.org/asc/980/10/#980-10-S50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:40.242Z to 2026-09-10T02:27:40.242Z Record version: sha256:84d93fd9a3590e9002a04424f51f993d5b7eadc00b282e309a543142468e7f80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [980-10-S99-1](https://asc.understandingaccounting.org/asc/980/10/#980-10-S99-1), SAB Topic 10.D, for SEC Staff views on the disclosure requirements for cost of power obtained under long-term purchase contracts. Source downloaded (UTC): 2026-09-10T02:27:45.235Z to 2026-09-10T02:27:45.235Z Record version: sha256:4c0238cfa480586b95276cf26423187c1ab78bdedad87f1e22b4490e906c01aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 980-10-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/980/10/#sec-99-sec-materials) SEC content: yes #### SEC Staff Guidance ##### [980-10-S99-1](https://asc.understandingaccounting.org/asc/980/10/#980-10-S99-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:45.235Z to 2026-09-10T02:27:45.235Z Record version: sha256:7813988b674ef1c9527eb9c997d109440d4ad565e2a115662e6784c72c2b4b55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 10.D, Long-Term Contracts for Purchase of Electric Power. - Facts: Under long-term contracts with public utility districts, cooperatives or other organizations, a utility company receives a portion of the output of a production plant constructed and financed by the district or cooperative. The utility has only a nominal or no investment at all in the plant but pays a proportionate part of the plant's costs, including debt service. The contract may be in the form of a sale of a generating plant and its immediate lease back. The utility is obligated to pay certain minimum amounts which cover debt service requirements whether or not the plant is operating. At the option of other parties to the contract and in accordance with a predetermined schedule, the utility's proportionate share of the output may be reduced. Separate agreements may exist for the transmission of power to the utility's system. FN2. - FN2 Registrants are reminded that the arrangement may contain a guarantee that is within the scope of Interpretation 45 \[Topic 460\]. Further, registrants should consider the guidance of Interpretation 46 \[Topic 810\]. Also, registrants would need to consider whether the arrangement contains a derivative that should be accounted for according to Statement 133 \[Topic 815\]. - Question: How should the cost of power obtained under long-term purchase contracts be reflected on the financial statements and what supplemental disclosures should be made in notes to the statements? - Interpretive Response: The cost of power obtained under long-term purchase contracts, including payments required to be made when a production plant is not operating, should be included in the operating expenses section of the income statement. A note to the financial statements should present information concerning the terms and significance of such contracts to the utility company including date of contract expiration, share of plant output being purchased, estimated annual cost, annual minimum debt service payment required and amount of related long-term debt or lease obligations outstanding. - Additional disclosure should be given if the contract provides, or is expected to provide, in excess of five percent of current or estimated future system capability. This additional disclosure may be in the form of separate financial statements of the vendor entity or inclusion of the amount of the obligation under the contract as a liability on the balance sheet with a corresponding amount as an asset representing the right to purchase power under the contract. - The note to the financial statements should disclose the allocable portion of interest included in charges under such contracts. Source downloaded (UTC): 2026-09-10T02:27:47.191Z to 2026-09-10T02:28:14.273Z Record version: sha256:a0c81f44bbe4a3e1b15c5908ed0a1e839a58c2f443ae796c14536834f657964a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 980-20: Regulated Operations — Discontinuation of Rate-Regulated Accounting ### Machine-generated study aids ```json { "summary": "ASC 980-20 governs what happens when an entity's operations (or a separable portion of them) stop meeting the criteria in 980-10-15-2 for rate-regulated accounting — because of deregulation, a shift away from cost-based rate-making, or competition/rate resistance. On discontinuation, the entity eliminates from its balance sheet all regulatory assets and liabilities that entities in general could not recognize, but does not adjust the carrying amounts of plant, equipment, and inventory unless impaired under Subtopic 360-10. The net adjustment goes to income of the period of discontinuation, classified separately within income from continuing operations as an unusual or infrequently occurring item.", "key_points": [ "An entity must discontinue applying Topic 980 to operations in a regulatory jurisdiction (or to a separable portion, such as a customer class) that no longer meet the criteria of 980-10-15-2; discontinuation for a separable portion creates a rebuttable presumption that Topic 980 should be discontinued for all operations in that jurisdiction (980-20-40-1).", "Upon discontinuation the entity eliminates the effects of regulator actions recognized as assets and liabilities that entities in general would not recognize, and the Impairment or Disposal of Long-Lived Assets Subsections of 360-10 apply except for the income statement reporting in 360-10-45-4 and 360-10-50-2 (980-20-40-2).", "Carrying amounts of plant, equipment, and inventory are not adjusted unless impaired, judged in the same manner as for entities in general (980-20-35-2; 980-20-40-2; 980-20-40-4).", "Amounts included in or netted against plant, equipment, or inventory that entities in general could not include — other than allowance for funds used during construction, intra-entity profit, and disallowances of recently completed plant costs (e.g., postconstruction operating costs capitalized under 980-340-25-1, or cumulative depreciation differences) — must be separated and accounted for as effects of regulator actions (980-20-35-3 through 35-5; 980-20-40-3).", "The net effect of the required adjustments is included in income of the period of discontinuation and classified separately in income from continuing operations as an unusual or infrequently occurring item (980-20-40-4).", "Under the source-of-cash-flow approach, regulatory assets and liabilities originating in the deregulated separable portion are not eliminated if deregulatory legislation or a rate order provides regulated cash flows from a still-regulated separable portion; they are carried in that other portion until recovered/settled, individually impaired or eliminated by the regulator, or that portion ceases to meet 980-10-15-2 (980-20-35-6 through 35-9).", "Disclosure: the entity must disclose the reasons for discontinuation and identify the affected portion of operations (980-20-50-1), apply Subtopic 220-20 disclosures to the net adjustment (980-20-50-2), and segregate amounts relating to the deregulated separable portion by display or note (980-20-45-1)." ], "categories": [ "Industry-specific", "Derecognition", "Impairment", "Disclosure" ], "audience_level": "intermediate", "student_note": "The classic exam trap is assuming discontinuation writes down everything: regulatory assets/liabilities are eliminated, but plant, equipment, and inventory keep their Topic 980 carrying amounts (including AFUDC) unless separately impaired under 360-10. Also remember the write-off is an unusual/infrequent item inside continuing operations, not an extraordinary item or a restatement.", "related_topics": [ "980-10", "980-340", "360-10", "220-20", "740-10", "980-405" ], "key_concepts": [ "discontinuation of rate-regulated accounting", "regulatory assets and liabilities", "separable portion of operations", "deregulation", "cost-based rate-making", "unusual or infrequently occurring item", "source of cash flow approach", "impairment of plant and equipment" ] } ``` Source downloaded (UTC): 2026-09-10T02:27:47.191Z to 2026-09-10T02:27:47.191Z Record version: sha256:0b85f030417e893b3d45dd34a6b8215d98533d16cc805731face61477442f8ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 980-20-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/980/20/#00-status) SEC content: no ##### [980-20-00-1](https://asc.understandingaccounting.org/asc/980/20/#980-20-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:47.191Z to 2026-09-10T02:27:47.191Z Record version: sha256:7fc500e7ae0de9f422e4ea8e1b540a7dc9b1631ea7b21c51e4e7e4d4e0a65591 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
980-20-40-4AmendedAccounting Standards Update No. 2015-0101/09/2015
980-20-45-1AmendedMaintenance Update 2016-11 (PDF)06/27/2016
980-20-50-2AmendedMaintenance Update 2017-19 (PDF)11/15/2017
980-20-50-2AmendedAccounting Standards Update No. 2015-0101/09/2015
980-20-55-4AmendedAccounting Standards Update No. 2015-0101/09/2015
980-20-55-9AmendedAccounting Standards Update No. 2015-0101/09/2015
980-20-55-13AmendedAccounting Standards Update No. 2015-0101/09/2015
Source downloaded (UTC): 2026-09-10T02:27:49.431Z to 2026-09-10T02:27:49.431Z Record version: sha256:1cbc1de6d8147f46c1545d404e981df8858cdfcc48c82a0a200f5c374af262be Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 980-20-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/980/20/#05-overview-and-background) SEC content: no ##### [980-20-05-1](https://asc.understandingaccounting.org/asc/980/20/#980-20-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:49.431Z to 2026-09-10T02:27:49.431Z Record version: sha256:b5521b1917af0c4bf3c9e4e3b9d2683d58574f433f6b4ca07850ab4188750c58 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses the discontinuation of rate-regulated accounting when an entity no longer meets the criteria in paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2). ##### [980-20-05-2](https://asc.understandingaccounting.org/asc/980/20/#980-20-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:49.431Z to 2026-09-10T02:27:49.431Z Record version: sha256:ca3f50c5f3c55fd525d9c5c15f7dcd0f87292959f1887f59cc070a18776b2b07 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Deregulation of certain industries and changes in the method of regulating others have caused several entities to discontinue application of this Topic for some or all of their operations. Source downloaded (UTC): 2026-09-10T02:27:53.312Z to 2026-09-10T02:27:53.312Z Record version: sha256:0b716c0a6fc421b123fd9468fd0f0b046c3617e8ec003da21f4eb4a3ae91f9b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 980-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/980/20/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [980-20-15-1](https://asc.understandingaccounting.org/asc/980/20/#980-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:53.312Z to 2026-09-10T02:27:53.312Z Record version: sha256:fd53711f03fe90b05f80544faa60cf386a100cb7f58f5d3a2d203fdd6db222f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 980-10-15, with specific exceptions as noted below, which provides further guidance on an entity's operations that no longer meet the criteria of regulated operations. #### Entities ##### [980-20-15-2](https://asc.understandingaccounting.org/asc/980/20/#980-20-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:53.312Z to 2026-09-10T02:27:53.312Z Record version: sha256:afda2117b8a0a3deec0b448287cbf4b1562732dbf267843ac66384b503c453a7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Failure of an entity's operations to continue to meet the criteria in paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2) can result from different causes. Examples include the following: 1. a Deregulation 2. b A change in the regulator's approach to setting rates from cost-based rate-making to another form of regulation 3. c Increasing competition that limits the entity's ability to sell utility services or products at rates that will recover costs (as used in paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2)) 4. d Regulatory actions resulting from resistance to rate increases that limit the entity's ability to sell utility services or products at rates that will recover costs if the entity is unable to obtain (or chooses not to seek) relief from prior regulatory actions through appeals to the regulator or the courts. ##### [980-20-15-3](https://asc.understandingaccounting.org/asc/980/20/#980-20-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:53.312Z to 2026-09-10T02:27:53.312Z Record version: sha256:9d236c4db91de9b7523e3a0217bbbd4604b267713330ab3e8ef134800c27c1e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Regardless of the reason for an entity's discontinuation of application of the Regulated Operations Topic, this Subtopic specifies how that discontinuation shall be reported in the entity's general-purpose external financial statements. Source downloaded (UTC): 2026-09-10T02:27:58.021Z to 2026-09-10T02:27:58.021Z Record version: sha256:ee4f0f8bb1ab0e581e4b8fbf4b5ef0a32a6dc3ddcfea9cbc7d6b8fcad394f26a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 980-20-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/980/20/#35-subsequent-measurement) SEC content: no #### Discontinuation of Recognition Following Regulator Actions ##### [980-20-35-1](https://asc.understandingaccounting.org/asc/980/20/#980-20-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:58.021Z to 2026-09-10T02:27:58.021Z Record version: sha256:ce6c151ec6c4268e465dc9e676fe3b1f4baaab953702c1bd2cf754a1dda9c08f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that discontinues application of the Regulated Operations Topic shall no longer recognize the effects of actions of a regulator as assets or liabilities unless the right to receive payment or the obligation to pay exists as a result of past events or transactions and regardless of future transactions. #### Plant, Equipment, and Inventory ##### [980-20-35-2](https://asc.understandingaccounting.org/asc/980/20/#980-20-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:58.021Z to 2026-09-10T02:27:58.021Z Record version: sha256:9ab7cefb38cd6f6513d98b42bc9ef1146f916ee64afb397cf1be794574258a0d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic requires that upon the discontinuation of rate-regulated accounting, the carrying amounts of the plant, equipment, and inventory measured and recorded pursuant to this Topic shall not be adjusted unless those assets are impaired. ##### [980-20-35-3](https://asc.understandingaccounting.org/asc/980/20/#980-20-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:58.021Z to 2026-09-10T02:27:58.021Z Record version: sha256:34ff059b50ea10d2ac6291105d98586957d457914d5a29ae43686322772d965c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The carrying amounts of plant, equipment, and inventory for entities applying this Topic differ from those for entities in general only because of the [allowance for funds used during construction](https://asc.understandingaccounting.org/glossary/a/#allowance-for-funds-used-during-construction "The cost of financing construction as financed partially by borrowings and partially by equity, capitalized as part of the cost of plant and equipment pursuant to requirements of the regulator."), intra-entity profit, and disallowances of costs of recently completed plants. If any other amounts that would not be includable in the carrying amounts of plant, equipment, or inventory by entities in general are included in or netted against the carrying amounts of plant, equipment, and inventory, those amounts shall be separated from the carrying amounts of plant, equipment, and inventory and accounted for as prescribed in this Subtopic. ##### [980-20-35-4](https://asc.understandingaccounting.org/asc/980/20/#980-20-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:58.021Z to 2026-09-10T02:27:58.021Z Record version: sha256:5ee80bc3984bcc884949663c461f870bcded476054c86bde43ab17e661cd09f1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, postconstruction operating costs that were capitalized pursuant to paragraph [980-340-25-1](https://asc.understandingaccounting.org/asc/340/980/#340-980-25-1) represent the effects of actions of a regulator regardless of their classification in the financial statements and shall be accounted for as this Subtopic prescribes for the effects of actions of a regulator. ##### [980-20-35-5](https://asc.understandingaccounting.org/asc/980/20/#980-20-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:58.021Z to 2026-09-10T02:27:58.021Z Record version: sha256:264639160e98a09c3b78674c7ae7d42c6b350f0538ba1a23ff2b253651c91874 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Another example of the effect of actions of a regulator that would require adjustment is the cumulative difference, if any, between recorded depreciation and depreciation computed using a generally accepted method of depreciation. #### Regulatory Assets and Liabilities Originating in a Separable Portion of the Entity ##### [980-20-35-6](https://asc.understandingaccounting.org/asc/980/20/#980-20-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:58.021Z to 2026-09-10T02:27:58.021Z Record version: sha256:d9d9dba725bab59bbed91370c7274158be1f32eed941f846b50266a5c9b5bc0f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The [regulatory assets and regulatory liabilities](https://asc.understandingaccounting.org/glossary/r/#regulatory-assets-and-regulatory-liabilities "Regulatory assets and regulatory liabilities are those assets and liabilities recognized pursuant to the provisions of paragraphs 980-340-25-1 and 980-405-25-1. These assets and liabilities are not recognized by entities in general.") that originate in a separable portion of an entity to which this Subtopic is applied shall be evaluated on the basis of where (that is, the portion of the business in which) the regulated cash flows to realize and settle them, respectively, will be derived. Regulated cash flows are from rates that are charged to customers and intended by regulators to be for the recovery of the specified regulatory assets and the settlement of regulatory liabilities. They are derived from a levy on rate-regulated goods or services provided by another separable portion of the entity that meets the criteria of paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2) for application of this Topic. ##### [980-20-35-7](https://asc.understandingaccounting.org/asc/980/20/#980-20-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:58.021Z to 2026-09-10T02:27:58.021Z Record version: sha256:ec72ce689aaa005bce9141bd7657a9986a573d7ef92d33bb96d26d4fe2ee99f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. There is no elimination of the regulatory assets and regulatory liabilities that originate in the separable portion of the business to which this Subtopic is applied and for which the deregulatory legislation or rate order (whichever is necessary to effect change in the jurisdiction) specifies the collection of regulated cash flows until any of the following occur: 1. a They are recovered by (in the case of assets) or settled through (in the case of liabilities) collection of regulated cash flows. 2. b They are individually impaired (in the case of assets) or the regulator eliminates the obligation (in the case of liabilities) as specified by the provisions of this Topic. 3. c The separable portion of the business from which the regulated cash flows are derived no longer meets the criteria of paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2) for application of this Topic. ##### [980-20-35-8](https://asc.understandingaccounting.org/asc/980/20/#980-20-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:58.021Z to 2026-09-10T02:27:58.021Z Record version: sha256:055df79426d9ec8a85b26eae3064aeb802e3b71215184f82e35ce434ae6997dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The source of the cash flow approach adopted in paragraphs [980-20-35-6 through 35-9](https://asc.understandingaccounting.org/asc/980/20/#980-20-35-6) shall be used for recoveries of all costs and settlements of all obligations (not just for regulatory assets and regulatory liabilities that are recorded at the date this Subtopic is applied) for which regulated cash flows are specifically provided in the deregulatory legislation or rate order (whichever is necessary to effect change in the jurisdiction). ##### [980-20-35-9](https://asc.understandingaccounting.org/asc/980/20/#980-20-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:58.021Z to 2026-09-10T02:27:58.021Z Record version: sha256:d83d55d3c379a08ff15aec9e33e077765b2225a43fa445fcd7c827c341a0a000 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A cost or an obligation is recognized as a regulatory asset or a regulatory liability within the separable portion of the entity from which the regulated cash flows for its recovery or settlement, respectively, are derived once it meets both of the following conditions: 1. a Expensed or incurred after this Subtopic is applied to the portion of the business where it originated (such as the loss on the sale of an electricity generating plant or the loss on the buy-out of a purchased power contract that is recognized after this Subtopic is applied to the generation portion of the business) 2. b Specified for recovery or settlement in the deregulatory legislation or a rate order (whichever is necessary to effect change in the jurisdiction) and is recovered or settled in the same manner (that is, via regulated cash flows) as the regulatory assets and regulatory liabilities described in paragraphs [980-20-35-6 through 35-9](https://asc.understandingaccounting.org/asc/980/20/#980-20-35-6) . Those regulatory assets and regulatory liabilities shall be carried in this other separable portion of the business until they are collected or settled, until they are individually impaired (assets) or eliminated (liabilities), or until that separable portion of the business no longer meets the criteria of paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2) for application of this Topic. Source downloaded (UTC): 2026-09-10T02:28:01.063Z to 2026-09-10T02:28:01.063Z Record version: sha256:fcd672857e34244fd8e6024aabd788445c4a3cf06c6bf74fd90a2d1c2e02ad21 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 980-20-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/980/20/#40-derecognition) SEC content: no #### Discontinuation of Regulatory Operations Guidance ##### [980-20-40-1](https://asc.understandingaccounting.org/asc/980/20/#980-20-40-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:01.063Z to 2026-09-10T02:28:01.063Z Record version: sha256:ddc68695fb0ac1417a73ed67e5a2104d86b7c0a4ff0150e606c3a60568c96343 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an entity determines that its operations in a regulatory jurisdiction no longer meet the criteria of paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2) for application of the Regulated Operations Topic, that entity shall discontinue application of this Topic to its operations in that jurisdiction. If a separable portion of the entity's operations within a regulatory jurisdiction ceases to meet the criteria of that paragraph for application of this Topic, application of this Topic to that separable portion shall be discontinued. That situation creates a presumption that application of this Topic shall be discontinued for all of the entity's operations within that regulatory jurisdiction. That presumption can be overcome by establishing that the entity's other operations within that jurisdiction continue to meet the criteria of paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2) for application of this Topic. The separable portion may be an entity's operations within a regulatory jurisdiction or a smaller portion (such as a customer class within a regulatory jurisdiction), either of which could require the allocation of system-wide assets and liabilities. ##### [980-20-40-2](https://asc.understandingaccounting.org/asc/980/20/#980-20-40-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:01.063Z to 2026-09-10T02:28:01.063Z Record version: sha256:c8955d8dcf27d2b2e21b56c8e537fc75f50c361e67d261c595a8a171809a00a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an entity discontinues application of this Topic to all or part of its operations, that entity shall eliminate from its statement of financial position prepared for general-purpose external financial reporting the effects of any actions of regulators that had been recognized as assets and liabilities pursuant to this Topic but would not have been recognized as assets and liabilities by entities in general, and the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 shall apply, except for the provisions for income statement reporting in paragraphs [360-10-45-4](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-4) and [360-10-50-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-2). However, the carrying amounts of plant, equipment, and inventory measured and reported pursuant to this Topic shall not be adjusted unless those assets are impaired, in which case the carrying amounts of those assets shall be reduced to reflect that impairment. ##### [980-20-40-3](https://asc.understandingaccounting.org/asc/980/20/#980-20-40-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:01.063Z to 2026-09-10T02:28:01.063Z Record version: sha256:1ae8bd207ffd7607cd4440711b16ff2857179b2543a6d7acb8edd339c97e1720 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The carrying amounts of plant, equipment, and inventory for entities applying this Topic differ from those for entities in general only because of the [allowance for funds used during construction](https://asc.understandingaccounting.org/glossary/a/#allowance-for-funds-used-during-construction "The cost of financing construction as financed partially by borrowings and partially by equity, capitalized as part of the cost of plant and equipment pursuant to requirements of the regulator."), intra-entity profit, and disallowances of costs of recently completed plants. If any other amounts that would not be includable in the carrying amounts of plant, equipment, or inventory by entities in general (such as postconstruction operating costs capitalized pursuant to paragraph [980-340-25-1](https://asc.understandingaccounting.org/asc/340/980/#340-980-25-1)) are included in or netted against the carrying amounts of plant, equipment, or inventory, those amounts shall be accounted for as this Subtopic prescribes for the effects of actions of a regulator. ##### [980-20-40-4](https://asc.understandingaccounting.org/asc/980/20/#980-20-40-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:01.063Z to 2026-09-10T02:28:01.063Z Record version: sha256:5ae44784de4830602882b64cb30ee5ccdca34a47123c501e5387361839e7b8eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Whether those assets have been impaired shall be judged in the same manner as for entities in general. The net effect of the adjustments required by this Subtopic shall be included in income of the period in which the discontinuation occurs and shall be classified separately in income from continuing operations as an unusual or infrequently occurring item. ##### [980-20-40-5](https://asc.understandingaccounting.org/asc/980/20/#980-20-40-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:01.063Z to 2026-09-10T02:28:01.063Z Record version: sha256:96e01ff306cb43df1587bef59763cbc37325aa3e946b19051b00a7d76b458fb9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples illustrating the discontinuation of regulatory operations guidance include the following: 1. a Example 1 (see paragraph [980-20-55-1](https://asc.understandingaccounting.org/asc/980/20/#980-20-55-1)) illustrates assets recorded based solely on expected future revenue from the regulator. 2. b Example 2 (see paragraph [980-20-55-6](https://asc.understandingaccounting.org/asc/980/20/#980-20-55-6)) illustrates liabilities recorded based solely on actions of the regulator. 3. c Example 3 (see paragraph [980-20-55-10](https://asc.understandingaccounting.org/asc/980/20/#980-20-55-10)) illustrates assets recorded for deferred income taxes not previously recognized for rate-making purposes but expected to be in the future. #### Deregulatory Legislation or Rate Order in a Separable Portion of the Entity ##### [980-20-40-6](https://asc.understandingaccounting.org/asc/980/20/#980-20-40-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:01.063Z to 2026-09-10T02:28:01.063Z Record version: sha256:5160a0429c22ca18a5450b12f20d7db55cd5e15e8e14769f6759064dc158e664 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When deregulatory legislation is passed or when a rate order (whichever is necessary to effect change in the jurisdiction) that contains sufficient detail for the entity to reasonably determine how the transition plan will affect a separable portion of its business whose pricing is being deregulated is issued, the entity shall stop applying this Topic to that separable portion of its business. It has not been established whether an entity shall stop applying the accounting and reporting for regulatory operations as provided in the other Subtopics of this Topic to that separable portion of its business before the issuance of sufficiently detailed deregulatory legislation or a sufficiently detailed rate order. Source downloaded (UTC): 2026-09-10T02:28:04.697Z to 2026-09-10T02:28:04.697Z Record version: sha256:92dd4dab97577e2ac41b65b4c387e867c3ce514f763131b2707e5903bae0080c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 980-20-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/980/20/#45-other-presentation-matters) SEC content: no #### Separable Portion Following Discontinuation of Regulatory Operations Guidance ##### [980-20-45-1](https://asc.understandingaccounting.org/asc/980/20/#980-20-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:04.697Z to 2026-09-10T02:28:04.697Z Record version: sha256:d574e7d5e2bebc736e1ee7e3d153f4f8ab19f731b4259bcb8610f528187eae69 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Once the Regulated Operations Topic is no longer applied to a separable portion of an entity's business, the financial statements shall segregate, via financial statement display or note disclosure, the amounts contained in the financial statements that relate to that separable portion. Source downloaded (UTC): 2026-09-10T02:28:08.750Z to 2026-09-10T02:28:08.750Z Record version: sha256:efc3805cae6c1344aa76433711b3af522c1bd2bf5ca950657ec6438a94a4ba42 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 980-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/980/20/#50-disclosure) SEC content: no ##### [980-20-50-1](https://asc.understandingaccounting.org/asc/980/20/#980-20-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:08.750Z to 2026-09-10T02:28:08.750Z Record version: sha256:17879357b1eff55d2feaf0070fd7f544e9aaed06a54a0910e6af0ffa10f68b1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the period in which an entity reflects the discontinuation of application of the Regulated Operations Topic all or a separable portion of its operations, the entity shall disclose the reasons for the discontinuation and identify the portion of its operations to which the application of this Topic is being discontinued. ##### [980-20-50-2](https://asc.understandingaccounting.org/asc/980/20/#980-20-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:08.750Z to 2026-09-10T02:28:08.750Z Record version: sha256:ffd10705b193b71b4d37ae3a5e9575bfd1b4b53da8e539edf723d8a01b8eaeef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosure requirements of Subtopic 220-20 for unusual or infrequently occurring items apply to the net adjustment reported in the statement of operations as a result of applying this Subtopic. Source downloaded (UTC): 2026-09-10T02:28:11.043Z to 2026-09-10T02:28:11.043Z Record version: sha256:b4d4447bbba372a32801367668b7b050770e546018f15d629fb7ee1dd1904613 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 980-20-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/980/20/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [980-20-55-1](https://asc.understandingaccounting.org/asc/980/20/#980-20-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:11.043Z to 2026-09-10T02:28:11.043Z Record version: sha256:cd5cfbce8090cb2d79bceb3a2ccb13fb11836aeccfbcfee76e850b9b4ca4c88e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [980-20-40-1 through 40-4](https://asc.understandingaccounting.org/asc/980/20/#980-20-40-1) . ##### [980-20-55-2](https://asc.understandingaccounting.org/asc/980/20/#980-20-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:11.043Z to 2026-09-10T02:28:11.043Z Record version: sha256:e626e68b01d919cce8165eb5d46107fdd32f3cca3ba44e130830b1fa2f2028e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Utility A operates solely in one regulatory jurisdiction. At December 31, 19X1, Utility A concludes, based on current market conditions, that it no longer meets the criteria of paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2) for the application of the Regulated Operations Topic. Utility A's statement of financial position at December 31, 19X1, includes all of the following items: 1. a Deferred purchased power costs (costs of power used for operations in prior periods that were expected to be recovered from customers as a result of an automatic adjustment clause) 2. b Deferred costs of abandoned plant (costs for which recovery was being provided through rates) 3. c Deferred costs of repairing storm damage. ##### [980-20-55-3](https://asc.understandingaccounting.org/asc/980/20/#980-20-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:11.043Z to 2026-09-10T02:28:11.043Z Record version: sha256:aec88cb924a7d838be2eaa136a4d07cc242f78121f79771c15af6f3984862a7c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Those items should be reported as follows as of December 31, 19X1. ##### [980-20-55-4](https://asc.understandingaccounting.org/asc/980/20/#980-20-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:11.043Z to 2026-09-10T02:28:11.043Z Record version: sha256:e8c6096dc5fb7ff8176e3d52a46135dffe64ef3551221d583727a678ed4863b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of those items should be eliminated from the entity's statement of financial position when it ceases to apply this Topic. The resulting charge to income should be reported as an unusual or infrequently occurring item in the period that includes December 31, 19X1. The entity should no longer defer those costs and report them as assets because they could not be reported as assets by entities in general. Entities in general would report a receivable for those items only if a right to receive payment exists as a result of past events or transactions and regardless of future transactions (such as future sales). ##### [980-20-55-5](https://asc.understandingaccounting.org/asc/980/20/#980-20-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:11.043Z to 2026-09-10T02:28:11.043Z Record version: sha256:6611b8022aec5f2199b6610497f5aa5e8ab2be343d5c81001a4f2c9032ff66f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, a contract between a supplier and a customer for the sale of fuel oil may specify that next year's sales price will be adjusted based on the supplier's current-year cost of fuel oil. Even though it is probable that a future economic benefit (the ability to charge a higher price in the future) will result from the supplier's current-year cost of fuel oil, no asset exists at the end of the current year because the transactions (sales to the customer) that give the supplier control of the benefit are in the future. However, if the contract provides that the customer is obligated to pay additional amounts related to past purchases and regardless of future purchases, the supplier has an asset and it does not matter whether that payment is made in a single amount or when the customer will pay for next year's purchases. ##### [980-20-55-6](https://asc.understandingaccounting.org/asc/980/20/#980-20-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:11.043Z to 2026-09-10T02:28:11.043Z Record version: sha256:6e845d62ee52b81e1fcc8332e609c5ad2353b327981506f4bb70f90dd0fe608f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [980-20-40-1 through 40-4](https://asc.understandingaccounting.org/asc/980/20/#980-20-40-1) . ##### [980-20-55-7](https://asc.understandingaccounting.org/asc/980/20/#980-20-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:11.043Z to 2026-09-10T02:28:11.043Z Record version: sha256:feba6f98a8ee99ba965cdb1de3cca4bfb322cc2ea951b3dbb3169bed8c6abda7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Utility B operates in two regulatory jurisdictions, State 1 and State 2; 40 percent of Utility B's operations are located in State 1 and 60 percent in State 2; system-wide assets, liabilities, and certain gains and losses are allocated 40 percent to State 1 and 60 percent to State 2. At December 31, 19X2, Utility B concludes, based on current and expected future market conditions in State 1, that it no longer meets the criteria of paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2) for application of this Topic to its operations in State 1. No similar conditions exist in State 2, and actions of State 1's regulators are not expected to influence the decisions of regulators in State 2. Utility B's statement of financial position at December 31, 19X2, includes the following items. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-8BD8BED6-66E8-4F19-B1B7-A9CE2573DE69-low.gif) "Deferred gain on restructuring debt, being amortized for rate-making purposes on an allocated basis by both states" " $50,000 " "Revenues collected subject to refund in prior years in State 1, expected to be refunded through future rates" " $75,000 " ##### [980-20-55-8](https://asc.understandingaccounting.org/asc/980/20/#980-20-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:11.043Z to 2026-09-10T02:28:11.043Z Record version: sha256:2aac0eb4f61c22e21a60770d6bdcc3ea40f489eeb10e6a66e357c21c621f52a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Those items should be reported as follows as of December 31, 19X2. ##### [980-20-55-9](https://asc.understandingaccounting.org/asc/980/20/#980-20-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:11.043Z to 2026-09-10T02:28:11.043Z Record version: sha256:5840228c898db164dc0b874974036c886a30c7b8b10c0f9290d7468be31e3ca3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The portion of the deferred gain allocable to State 1 (determined in this Example to be 40 percent of $50,000, or $20,000) should be eliminated from the entity's statement of financial position when it ceases to apply this Topic to its operations in State 1. No adjustment should be made for the deferred gain applicable to State 2. The regulatory-created accrual for revenues subject to refund in State 1 should be eliminated. Whether any liability related thereto exists should be determined under generally accepted accounting principles (GAAP) for entities in general. For example, amounts that were collected in the current or prior periods for which refunds will be made regardless of future sales should continue to be reported as liabilities after application of this Topic is discontinued. The credit to income resulting from the above adjustments should be reported as an unusual or infrequently occurring item in the period that includes December 31, 19X2. ##### [980-20-55-10](https://asc.understandingaccounting.org/asc/980/20/#980-20-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:11.043Z to 2026-09-10T02:28:11.043Z Record version: sha256:0cf81dece7e0b35fb6d697a5f11db42b82419cdc1a62624f95a04ce1cb788d55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [980-20-40-1 through 40-4](https://asc.understandingaccounting.org/asc/980/20/#980-20-40-1) . ##### [980-20-55-11](https://asc.understandingaccounting.org/asc/980/20/#980-20-55-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:11.043Z to 2026-09-10T02:28:11.043Z Record version: sha256:21fbc2416e79ea83793cb0ac9fa54d7924a02938338f898b55c31a1278f1e312 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Utility C operates solely in one regulatory jurisdiction. At June 30, 19X3, Utility C concludes, based on new legislation, that it no longer meets the criteria of paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2) for application of this Topic . Utility C had adopted Subtopic 740-10 in 19X2 and because of applying this Topic had recorded a regulatory-created asset of $650,000 for deferred taxes resulting from temporary differences that had not been recognized in the rate-making process but that were expected to be recovered in the future. ##### [980-20-55-12](https://asc.understandingaccounting.org/asc/980/20/#980-20-55-12) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:11.043Z to 2026-09-10T02:28:11.043Z Record version: sha256:b05a7a2358b18c746bd5c3c48906736c015e31f1c52eb47484f7007e2fe22e74 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following reporting is required for that regulatory-created asset. ##### [980-20-55-13](https://asc.understandingaccounting.org/asc/980/20/#980-20-55-13) Pending content: no Source downloaded (UTC): 2026-09-10T02:28:11.043Z to 2026-09-10T02:28:11.043Z Record version: sha256:6c4825a8bbe2a4ab430a1a14e3d24b8afcf11a97eddc16d58d0989c22412ece9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Utility C should eliminate that regulatory-created asset from its statement of financial position when the entity ceases to apply this Topic. The charge to income should be reported as an unusual or infrequently occurring item in the period that includes June 30, 19X3.