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General and Summary of Significant Accounting Policies Effect of Change in Estimate (Tables) | 12 Months Ended
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Dec. 31, 2019
Change in Accounting Estimate [Line Items] |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following table provides a brief description of recent accounting pronouncements that had an impact on the Company’s consolidated financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or did not have a material impact on the Company’s consolidated financial statements.
New Accounting Standards Adopted
ASU Number and Name | Description | Date of Adoption | Effect on the financial statements upon adoption
2014-09, 2015-14, 2016-08, 2016-10, 2016-12, 2016-20, 2017-10, 2017-13, Revenue from Contracts with Customers (Topic 606) | See discussion of the ASU below. | January 1, 2018 | See impact upon adoption of the standard below.
2018-02, Income Statement — Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from AOCI | This amendment allows a reclassification of the stranded tax effects resulting from the implementation of the Tax Cuts and Jobs Act from AOCI to retained earnings at the election of the filer. Because this amendment only relates to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. | January 1, 2019 | The Company has not elected to reclassify any amounts to retained earnings. The Company’s accounting policy for releasing the income tax effects from AOCI occurs on a portfolio basis.
2017-12, Derivatives and Hedging (Topic 815): Targeted improvements to Accounting for Hedging Activities | The standard updates the hedge accounting model to expand the ability to hedge nonfinancial and financial risk components, reduce complexity, and ease certain documentation and assessment requirements. When facts and circumstances are the same as at the previous quantitative test, a subsequent quantitative effectiveness test is not required. The standard also eliminates the requirement to separately measure and report hedge ineffectiveness. For cash flow hedges, this means that the entire change in the fair value of a hedging instrument will be recorded in other comprehensive income and amounts deferred will be reclassified to earnings in the same income statement line as the hedged item. Transition method: modified retrospective with the cumulative effect adjustment recorded to the opening balance of retained earnings as of the initial application date. Prospective for presentation and disclosures. | January 1, 2019 | The adoption of this standard resulted in a $4 million decrease to accumulated deficit.
2014-09, 2015-14, 2016-08, 2016-10, 2016-12, 2016-20, 2017-10, 2017-13, Revenue from Contracts with Customers (Topic 606) | ASC 606 was adopted by sPower on January 1, 2019. sPower was not required to adopt ASC 606 using the public adoption date, as sPower is an equity method investee that meets the definition of a public business entity only by virtue of the inclusion of its summarized financial information in the Company’s SEC filings. Under the previous revenue standard, the payment received by sPower for the transfer of Incentive Tax Credits related to projects was deferred and recognized in revenue over time. Under ASC 606, this payment is recognized at a point in time. | January 1, 2019 | The adoption of this standard resulted in a $6 million decrease to accumulated deficit attributable to the AES Corporation stockholders’ equity.
2016-02, 2018-01, 2018-10, 2018-11, 2018-20, 2019-01, Leases (Topic 842) | See discussion of the ASU below. | January 1, 2019 | See impact upon adoption of the standard below.
ASC 842 — Leases On January 1, 2019, the Company adopted ASC 842 Leases and its subsequent corresponding updates (“ASC 842”). Under this standard, lessees are required to recognize assets and liabilities for most leases on the balance sheet, and recognize expenses in a manner similar to the prior accounting method. For lessors, the guidance modifies the lease classification criteria and the accounting for sales-type and direct financing leases. The guidance eliminates previous real estate-specific provisions. Under ASC 842, fewer of our contracts contain a lease. However, due to the elimination of the real estate-specific guidance and changes to certain lessor classification criteria, more leases qualify as sales-type leases and direct financing leases. Under these two models, a lessor derecognizes the asset and recognizes a lease receivable. According to ASC 842, the net investment in the lease includes the fair value of residual interest in the asset after the contract period as well as the present value of the fixed lease payments, but does not include any variable payments under the lease. Therefore, the net investment in the lease could be significantly different than the carrying amount of the underlying asset at lease commencement. In such circumstances, the difference between the initially recognized net investment in the lease and the carrying amount of the underlying asset is recognized as a gain/loss at lease commencement. During the course of adopting ASC 842, the Company applied various practical expedients including:
• | The package of practical expedients (applied to all leases) that allowed lessees and lessors not to reassess:
a. | whether any expired or existing contracts are or contain leases,
b. | lease classification for any expired or existing leases, and
c. | whether initial direct costs for any expired or existing leases qualify for capitalization under ASC 842.
• | The transition practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements, and
• | The transition practical expedient for lessees that allowed businesses to not separate lease and non-lease components. The Company applied the practical expedient to all classes of underlying assets when valuing right-of-use assets and lease liabilities. Contracts where the Company is the lessor were separated between the lease and non-lease components.
The Company applied the modified retrospective method of adoption and elected to continue to apply the guidance in ASC 840 Leases to the comparative periods presented in the year of adoption. Under this transition method, the Company applied the transition provisions starting at the date of adoption. The cumulative effect of the adoption of ASC 842 on our January 1, 2019 Consolidated Balance Sheet was as follows (in millions):
Consolidated Balance Sheet | Balance at December 31, 2018 |  | Adjustments Due to ASC 842 |  | Balance at January 1, 2019
Assets |  |  |  |  |
Other noncurrent assets | $ | 1,514 |  |  | $ | 253 |  |  | $ | 1,767 |
Liabilities |  |  |  |  |
Accrued and other liabilities | 962 |  |  | 27 |  |  | 989 |
Other noncurrent liabilities | 2,723 |  |  | 226 |  |  | 2,949 |
The primary impact of adoption was due to the recognition of a right-of-use-asset and lease liability for an operating land lease in Panama associated with the Colon LNG power plant and regasification terminal. ASC 606 — Revenue from Contracts with Customers On January 1, 2018, the Company adopted ASU 2014-09, "Revenue from Contracts with Customers," and its subsequent corresponding updates ("ASC 606"). Under this standard, an entity shall recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company applied the modified retrospective method of adoption to the contracts that were not completed as of January 1, 2018. Results for reporting periods beginning January 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported in accordance with the previous revenue recognition standard. For contracts that were modified before January 1, 2018, the Company reflected the aggregate effect of all modifications when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price. The cumulative effect to our January 1, 2018 Consolidated Balance Sheet resulting from the adoption of ASC 606 was as follows (in millions):
Consolidated Balance Sheet | Balance at December 31, 2017 |  | Adjustments Due to ASC 606 |  | Balance at January 1, 2018
Assets |  |  |  |  |
Other current assets | $ | 630 |  |  | $ | 61 |  |  | $ | 691 |
Deferred income taxes | 130 |  |  | (24 | ) |  | 106 |
Service concession assets, net | 1,360 |  |  | (1,360 | ) |  | — |
Loan receivable | — |  |  | 1,490 |  |  | 1,490 |
Equity |  |  |  |  |
Accumulated deficit | (2,276 | ) |  | 67 |  |  | (2,209 | )
Accumulated other comprehensive loss | (1,876 | ) |  | 19 |  |  | (1,857 | )
Noncontrolling interest | 2,380 |  |  | 81 |  |  | 2,461 |
The Mong Duong II power plant in Vietnam is the primary driver of changes in revenue recognition under the new standard. This plant is operated under a build, operate, and transfer contract and will be transferred to the Vietnamese government after the completion of a 25-year PPA. Under the previous revenue recognition standard, construction costs were deferred to a service concession asset, which was expensed in proportion to revenue recognized for the construction element over the term of the PPA. Under ASC 606, construction revenue and associated costs are recognized as construction activity occurs. As construction of the plant was substantially completed in 2015, revenues and costs associated with the construction were recognized through retained earnings, and the service concession asset was derecognized. A loan receivable was recognized for the future expected payments for the construction performance obligation. As the payments for the construction performance obligation occur over a 25-year term, a significant financing element was determined to exist which is accounted for under the effective interest rate method. The other performance obligation to operate and maintain the facility is measured based on the capacity made available. The impact to our Consolidated Balance Sheet as of December 31, 2018 resulting from the adoption of ASC 606 as compared to the previous revenue recognition standard was as follows (in millions):
| December 31, 2018
Consolidated Balance Sheet | As Reported |  | Balances Without Adoption of ASC 606 |  | Adoption Impact
Assets |  |  |  |  |
Other current assets | $ | 807 |  |  | $ | 741 |  |  | $ | 66 |
Deferred income taxes | 97 |  |  | 122 |  |  | (25 | )
Service concession assets, net | — |  |  | 1,261 |  |  | (1,261 | )
Loan receivable | 1,423 |  |  | — |  |  | 1,423 |
TOTAL ASSETS | 32,521 |  |  | 32,318 |  |  | 203 |
Equity |  |  |  |  |
Accumulated deficit | (1,005 | ) |  | (1,112 | ) |  | 107 |
Accumulated other comprehensive loss | (2,071 | ) |  | (2,088 | ) |  | 17 |
Noncontrolling interest | 2,396 |  |  | 2,317 |  |  | 79 |
TOTAL LIABILITIES AND EQUITY | 32,521 |  |  | 32,318 |  |  | 203 |
The impact to our Consolidated Statement of Operations for the year ended December 31, 2018 resulting from the adoption of ASC 606 as compared to the previous revenue recognition standard was as follows (in millions):
| Year Ended December 31, 2018
Consolidated Statement of Operations | As Reported |  | Balances Without Adoption of ASC 606 |  | Adoption Impact
Total revenue | $ | 10,736 |  |  | $ | 10,800 |  |  | $ | (64 | )
Total cost of sales | (8,163 | ) |  | (8,207 | ) |  | 44 |
Operating margin | 2,573 |  |  | 2,593 |  |  | (20 | )
Interest income | 310 |  |  | 252 |  |  | 58 |
Other Income | 72 |  |  | 70 |  |  | 2 |
Income from continuing operations before taxes and equity in earnings of affiliates | 2,018 |  |  | 1,978 |  |  | 40 |
INCOME FROM CONTINUING OPERATIONS | 1,349 |  |  | 1,309 |  |  | 40 |
NET INCOME | 1,565 |  |  | 1,525 |  |  | 40 |
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION | 1,203 |  |  | 1,163 |  |  | 40 |
New Accounting Pronouncements Issued But Not Yet Effective — The following table provides a brief description of recent accounting pronouncements that could have a material impact on the Company’s consolidated financial statements once adopted. Accounting pronouncements not listed below were assessed and determined to be either not applicable or are expected to have no material impact on the Company’s consolidated financial statements.
New Accounting Standards Issued But Not Yet Effective
ASU Number and Name | Description | Date of Adoption | Effect on the financial statements upon adoption
2019-12, Income Taxes (Topic 740): Simplifying the Accounting For Income Taxes | The standard removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. Transition Method: various | January 1, 2021. Early adoption is permitted. | The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements.
2016-13, 2018-19, 2019-04, 2019-05, 2019-10, 2019-11, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments | See discussion of the ASU below. | January 1, 2020. Early adoption is permitted only as of January 1, 2019. | The Company will adopt the standard on January 1, 2020; see below for the evaluation of the impact of the adoption on the consolidated financial statements.
Schedule of Change in Accounting Estimate [Table Text Block] | .

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