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Basis of Presentation | 9 Months Ended
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May 31, 2025
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, 2024 included in our Annual Report on Form 10-K filed with the SEC on October 10, 2024. 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 and nine months ended May 31, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2025. Allowance for Credit Losses—Client Receivables and Contract Assets As of May 31, 2025 and August 31, 2024, the total allowance for credit losses recorded for client receivables and contract assets was $31,784 and $27,561, respectively. The change in the allowance is primarily due to changes in gross client receivables and contract assets and immaterial write-offs. 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 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:
| May 31, 2025 |  | August 31, 2024
Equity method investments | $ | 297,371 |  |  | $ | 128,634 |
Investments without readily determinable fair values | 296,100 |  |  | 206,030 |
Total non-current investments | $ | 593,471 |  |  | $ | 334,664 |
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. Depreciation and Amortization As of May 31, 2025 and August 31, 2024, total accumulated depreciation was $2,960,256 and $2,713,855, respectively. See table below for a summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization and operating lease cost for the three and nine months ended May 31, 2025 and 2024, respectively.
| Three Months Ended |  | Nine Months Ended
| May 31, 2025 |  | May 31, 2024 |  | May 31, 2025 |  | May 31, 2024
Depreciation | $ | 138,806 |  |  | $ | 138,132 |  |  | $ | 405,714 |  |  | $ | 406,374 |
Amortization—Deferred transition | 92,563 |  |  | 74,196 |  |  | 257,018 |  |  | 265,552 |
Amortization—Intangible assets | 153,199 |  |  | 133,097 |  |  | 465,575 |  |  | 364,353 |
Operating lease cost | 178,660 |  |  | 172,293 |  |  | 539,055 |  |  | 520,522 |
Other | 5,224 |  |  | 3,587 |  |  | 15,300 |  |  | 14,832 |
Total depreciation, amortization and other | $ | 568,452 |  |  | $ | 521,305 |  |  | $ | 1,682,662 |  |  | $ | 1,571,633 |
New Accounting Pronouncements On November 27, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Improvements to Reportable Segment Disclosures, which requires entities to enhance disclosures regarding their segments, including significant segment expenses. The ASU will be effective beginning with our annual fiscal 2025 financial statements and requires a retrospective method upon adoption. We are currently evaluating the impact of this standard on our segment disclosures. On December 14, 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. The ASU will be effective beginning with our annual fiscal 2026 financial statements and allows for adoption on a prospective basis, with a retrospective option. We are in the process of assessing the impacts and method of adoption. This ASU will impact our income tax disclosures, but not our financial position or results of operations. On November 4, 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses, which requires entities to disclose specified information about certain expenses in the notes to the financial statements, including employee compensation. The ASU will be effective beginning with our annual fiscal 2028 financial statements. We are currently evaluating the impact of this standard on our disclosures.

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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 -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/235/tableOfContent + Details
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