Power & Infrastructure Accounting
UK power generation and infrastructure companies navigate long-term contract accounting under FRS 102, significant capital allowance claims on infrastructure assets, Contracts for Difference (CfD) revenue accounting for renewable energy projects, Climate Change Levy (CCL) obligations, government grant accounting for green energy incentives, and complex regulatory reporting requirements to Ofgem.
Our power and infrastructure accounting services handle long-term contract revenue recognition, capital project cost tracking, CfD and renewable obligation certificate accounting, CCL compliance, government grant and subsidy accounting, asset lifecycle and depreciation management, regulatory reporting, and Corporation Tax planning including enhanced capital allowances for energy-efficient equipment.
What's Included
Comprehensive services tailored to your industry needs
Industry-Specific UK Expertise
Key UK Challenges
Complexities you face
- Long-term contract revenue recognition under FRS 102 — percentage of completion method
- Managing Contracts for Difference (CfD) revenue — strike price vs reference price calculations
- Accounting for government grants and subsidies under FRS 102 Section 24
- Climate Change Levy compliance — exemptions, reduced rates, and Climate Change Agreements
- Asset lifecycle management — long-lived infrastructure assets with complex depreciation profiles
- Regulatory reporting to Ofgem including licence fee calculations and performance obligations
Tax Considerations
HMRC rules & reliefs
- Enhanced capital allowances — 100% first-year allowance on qualifying energy-efficient equipment
- Full expensing — new qualifying plant and machinery at 100% in the first year
- Climate Change Levy — standard rates on gas, electricity, and solid fuels; reduced rates via CCAs
- CfD income — taxable revenue; timing differences between accounting and tax recognition
- Government grants — tax treatment depends on whether capital or revenue grant
- Corporation Tax — 25% on profits; significant capital investment creates timing benefits
How We Help
Our tailored solutions
- Long-term contract accounting with percentage of completion calculations
- CfD revenue tracking and strike price vs reference price analysis
- Government grant accounting under FRS 102 with correct capital/revenue classification
- Climate Change Levy compliance and CCA reduced rate applications
- Enhanced capital allowance claims for energy-efficient equipment
- Ofgem regulatory reporting and licence compliance cost management
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