Impact of New Accounting Standards and Interpretations Impact of New Accounting Standards and Interpretations (Tables)

3 Months Ended

Dec. 31, 2021

Accounting Changes and Error Corrections [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Impact of New Accounting Standards and Interpretations

The following are accounting standard updates issued by the Financial Accounting Standards Board ("FASB") that TVA adopted during 2022:



























Lessor-Certain Leases with Variable Lease Payments
Description			This guidance amends the lessor lease classification for leases that have variable lease payments that are not based on an index or rate. If the lease meets the criteria for classification as either (1) a sale-type or (2) direct finance lease, and application of the lease guidance would result in recognition of a day-one selling loss, then the lease should be classified as an operating lease. There are two transition methods provided by the guidance for entities that have adopted the standard: •Retrospective application to leases that commenced or were modified after the beginning of the period in which the standard was adopted, or •Prospective application to leases that commence or are modified subsequent to the date that amendments in the guidance are first applied.
Effective Date for TVA			October 1, 2021
Effect on the Financial Statements or Other Significant Matters			TVA adopted this standard on a prospective basis. Adoption of this standard did not have a material impact on TVA's financial condition, results of operations, or cash flows.

Reference Rate Reform
Description			This guidance provides temporary optional expedients and exceptions to the guidance in GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rates.
Effective Date for TVA			December 31, 2021
Effect on the Financial Statements or Other Significant Matters			TVA has interest rate swap contracts totaling a notional value of $1.5 billion that are indexed to LIBOR. TVA adopted the International Swaps and Derivative Association’s ("ISDA’s") LIBOR fallback protocol for interest rate swaps prior to December 31, 2021. Under this protocol, U.S. dollar LIBOR transactions would fallback to the Secured Overnight Financing Rate ("SOFR"). The interest rate swap contracts did not receive hedge accounting treatment, and therefore, TVA did not elect any optional expedients for this modification. TVA does not have any other significant contracts, including lease agreements, that include payments indexed to LIBOR. Therefore, the change of reference rate did not have a material impact on TVA’s financial condition, results of operations, or cash flows.

The following accounting standard has been issued but, at December 31, 2021, was not effective and had not been adopted by TVA:



























Accounting for Contract Assets and Contract Liabilities from Contracts with Customers
Description			This guidance requires an entity (acquirer) to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with revenue with customers. It is expected that an acquirer will generally recognize and measure acquired contract assets and contract liabilities in a manner consistent with how the acquiree recognized and measured contract assets and contract liabilities in the acquiree’s financial statement.
Effective Date for TVA			This new standard is effective for TVA’s interim and annual reporting periods beginning October 1, 2023. While early adoption is permitted, TVA does not currently plan to adopt this standard early.
Effect on the Financial Statements or Other Significant Matters			TVA does not expect the adoption of this standard to have a material impact on its financial condition, results of operations, or cash flows.