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Decommissioning nuclear

Decommissioning nuclear

Understanding the reporting obligations

Bailey Church

Partner, Accounting Advisory Services

KPMG in Canada


Related content

Nuclear power plant

The decommissioning of nuclear power plants is subject to intense public, media and regulatory scrutiny. The development of cost estimates for decommissioning, and the accounting for nuclear decommissioning obligations is increasingly complex, and influenced by shifting trends in technology and other underlying assumptions, as well as practices such as data analytics. Controls and governance over decommissioning projects must therefore be rigorous.

Around the world, owners and licensees of nuclear power plants are responsible for developing reliable and complete cost estimates of decommissioning their assets. As an increasing number of plants retire early, entities are challenged to ensure that their cost estimates remain appropriate and their funding arrangements adequate.

Top of mind questions from Boards

  • Does our cost estimate for decommissioning account for shifts in technology and regulatory requirements?
  • Do we have adequate governance and controls over the management of nuclear decommissioning funds?
  • Why doesn't the decommissioning obligation on our financial statements represent total decommissioning costs?
  • Are we applying the right assumptions to measure the decommissioning obligation?

To learn more, read the full report.

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