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Basis of Presentation | 3 Months Ended
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Nov. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements of Accenture plc and its controlled subsidiary companies have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. We use the terms “Accenture,” “we” and “our” in the Notes to Consolidated Financial Statements to refer to Accenture plc and its subsidiaries. These Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes thereto for the fiscal year ended August 31, 2022 included in our Annual Report on Form 10-K filed with the SEC on October 12, 2022. The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that we may undertake in the future, actual results may differ from those estimates. The Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of results for these interim periods. The results of operations for the three months ended November 30, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2023. Allowance for Credit Losses—Client Receivables and Contract Assets As of November 30, 2022 and August 31, 2022, the total allowance for credit losses recorded for client receivables and contract assets was $24,617 and $25,786, respectively. The change in the allowance is primarily due to immaterial write-offs and changes in gross client receivables and contract assets. Investments All available-for-sale securities and liquid investments with an original maturity greater than three months but less than one year are considered to be Short-term investments. Non-current investments consist of equity securities in publicly-traded and privately-held companies and are accounted for using either the equity or fair value measurement alternative method of accounting (for investments without readily determinable fair values). Our non-current investments are as follows:
| November 30, 2022 |  | August 31, 2022
Equity method investments | $ | 166,360 |  |  | $ | 164,164 |
Investments without readily determinable fair values | 158,022 |  |  | 153,808 |
Total non-current investments | $ | 324,382 |  |  | $ | 317,972 |
For investments in which we can exercise significant influence but do not control, we use the equity method of accounting. Equity method investments are initially recorded at cost and our proportionate share of gains and losses of the investee are included as a component of Other income (expense), net. Our equity method investments consist primarily of an investment in Duck Creek Technologies. As of November 30, 2022, the carrying amount of our investment was $141,960, and the estimated fair value of our approximately 16% ownership was $209,851. We account for the investment under the equity method because we have the ability to influence operations through the combination of our voting power and through other factors, such as representation on the board and our business relationship. Depreciation and Amortization As of November 30, 2022 and August 31, 2022, total accumulated depreciation was $2,575,758 and $2,490,187, respectively. See table below for summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization and operating lease cost for the three months ended November 30, 2022 and 2021, respectively.
| Three Months Ended |  |
| November 30, 2022 |  | November 30, 2021 |  |  |  |
Depreciation | $ | 144,049 |  |  | $ | 138,793 |  |  |  |  |
Amortization - Deferred transition | 70,440 |  |  | 67,206 |  |  |  |  |
Amortization - Intangible assets | 109,069 |  |  | 102,542 |  |  |  |  |
Operating lease cost | 180,502 |  |  | 190,242 |  |  |  |  |
Other | 2,169 |  |  | 2,082 |  |  |  |  |
Total depreciation, amortization and other | $ | 506,229 |  |  | $ | 500,865 |  |  |  |  |

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- Definition The entire disclosure for the basis of presentation and significant accounting policies concepts. Basis of presentation describes the underlying basis used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). Accounting policies describe all significant accounting policies of the reporting entity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI https://asc.fasb.org/topic&trid=2122369 + Details
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