Pwc's Cfodirect Podcast

Text us your thoughts on this episodeWe continue our miniseries on lease accounting. In this episode, we discuss “day 2” lease accounting, focusing on lease remeasurements, subleasing, and lease impairments.In this episode, you’ll hear a discussion of:01:18 - Events requiring remeasurement02:17 - Full lease remeasurements06:19 - Partial lease remeasurements7:47 - Lease term and purchase option remeasurements13:44 - Lease modification remeasurements21:34 - Subleasing arrangements25:58 - A refresher on ROU asset impairmentsFor more information on modifications and remeasurements of leases, read chapter 5 of our Leases guide. For more on leases, check out the first episode in our miniseries; it covers lease classification. Additionally, follow this podcast on your favorite podcast app for more episodes. Suzanne Stephani is a director in PwC’s National Office specializing in the statement of cash flows, as well as the application and interpretation of the accounting guidance related to financing and leasing trans

Text us your thoughts on this episodeThe International Sustainability Standards Board (ISSB) under the IFRS Foundation last year released IFRS S1 and IFRS S2, representing a step toward the organization’s goal of achieving a comprehensive global baseline of sustainability disclosures. But implementing such a global baseline effectively goes beyond simply setting standards – it requires a new set of capabilities, infrastructure, knowledge, and talent in economies around the world.New sustainability reporting requirements in jurisdictions around the world have resulted in the need for companies to take stock of their own capacity to produce high quality sustainability disclosures, as well as the capacity of players in their value chains who will provide inputs to their reporting. In this episode, Heather Horn sat down with Mardi McBrien, Chief of Strategic Affairs & Capacity Building at the IFRS Foundation, to discuss how the IFRS Foundation has been working to build capacity, and how companies can best nav

Text us your thoughts on this episodeThis first episode in a miniseries on lease accounting focuses on lease classification. We provide an overview of the differences between finance and operating leases and discuss the criteria for classifying leases.In this episode, you’ll hear:3:30 - An overview of the key differences between finance and operating leases, including expense recognition and cash flow classification5:15 - A discussion of how to determine if a lease should be classified as finance or operating including:6:35 - Lease commencement date considerations10:20 - Whether a lease contains a single asset or multiple assets14:41 - Whether the lease term is a major part of the economic life of the asset22:55 - The lease payment criterion, including a breakdown of lease payments and the appropriate discounting methodology41:56 - Highlights of other classification criteria such as title transfer, purchase options, and alternative useFor more information, read chapter 3 of our Leases guide. Additionally, fol

Text us your thoughts on this episodeCompanies around the world are now facing the difficult task of operationalizing multiple sustainability reporting regulations, and doing so within an unprecedented timeline. How are they managing the pressures? In this episode, host Heather Horn sat down with Alan McGill, PwC UK’s Sustainability Reporting, Measurements, and Assurance Leader, to illuminate some of the ways that companies are most effectively navigating the current regulatory landscape. In this episode, we discuss:2:45 - The complexity of the current sustainability regulatory landscape 7:03 - The market response to sustainability regulations, including challenges companies may face regarding short implementation timelines 10:38 - The significant increase in the scope of reporting requirements under the CSRD compared to previous voluntary reporting and what that means for companies in scope 13:14 - The current knowledge gap in ESG, and the importance of using sustainability data to drive business innovation

Text us your thoughts on this episodeWe wrap up our miniseries exploring accounting for property, plant, and equipment with a discussion of asset acquisitions. In this episode Host Heather Horn is joined by PwC National Office partners Matt Sabatini and Alexander Martin who team up to share their knowledge and insights on this topic.In this episode, you’ll hear:04:41 – A discussion of how to determine whether a transaction is an asset acquisition or a business combination24:26 – An explanation of the asset acquisition accounting framework32:58 – The complexities of contingent consideration arrangements39:32 – How transaction costs impact initial measurement42:09 – Noncontrolling interests47:36 – Considerations when identifying the assets acquired50:15 – How to allocate cost to assets acquiredFor more information, read chapter 2 of our Property, plant, equipment and other assets guide. Additionally, follow this podcast on your favorite podcast app for more episodes. Matt Sabatini is a partner in PwC's Nat

Text us your thoughts on this episodeThe SEC’s new climate-related disclosures rules include new required disclosures on greenhouse gas (GHG) emissions reporting and assurance will be required.In this episode, host Heather Horn sits down with Marcin Olewinski, a Trust Solutions partner, to unpack the key GHG emissions reporting requirements in the SEC’s new rules and to share insights for companies navigating the intersection among regulatory reporting requirements globally.In this episode, you’ll hear:2:20 - An overview of GHG emissions reporting requirements under the new SEC rules7:30 - A discussion of the materiality qualifier for GHG emissions reporting and judgments involved in assessing materiality of nonfinancial information14:30 - Insights on the notable changes between the proposed and final rules as well as a breakdown of the key requirements, including:15:05 - Considerations for navigating the requirements for electing and reporting organizational boundaries19:50 - A discussion of the requirements

Text us your thoughts on this episodeThe SEC’s final climate rule may be the headline news; however, companies shouldn’t lose sight of other requirements impacting first quarter reporting. As we kick off a new year, use our “cheat sheet” summary to keep track of new accounting guidance effective in 2024. In addition, Pillar Two tax legislation is now effective in several jurisdictions around the world and we discuss the implications. Marking a significant milestone in sustainability reporting, the SEC voted on March 6 to finalize its long-awaited climate disclosure rules. In regulatory developments we provide details and the resources you need to get up to speed on the final requirements. The SEC’s rule is just one of the sustainability reporting requirements that may impact you. This quarter we launched the first chapter of our new global Sustainability Reporting Guidance – use it as a one-stop shop for guidance on the major required sustainability reporting frameworks around the globe. After issuing three s

Text us your thoughts on this episodeWe continue our miniseries exploring accounting for property, plant, and equipment. In this second episode we discuss the treatment of long-lived assets that are held for sale, from impairment to accounting for the sale of non-financial assets. Host Heather Horn is once again joined by Beth Paul, Deputy Chief Accountant in PwC’s National Office, to walk through specific considerations and complexities on this topic. In this episode, you’ll hear:00:22 – An overview of the impairment model for long-lived assets that are held for sale02:05 – How to identify disposal groups03:50 – A discussion of the order of impairment testing under the held for sale model04:46 – What to consider when measuring impairment at the lower of carrying value or fair value less cost to sell11:25 – A walkthrough of the accounting implications of AOCI and noncontrolling interest (NCI) in the held for sale model16:05 – An explanation of differences between the sale of a business and the sale of an asse

Text us your thoughts on this episodeGot property, plant, and equipment? We’ve got you covered with a miniseries that explores the key judgments and complexities on the topic. We kick off with the impairment of long-lived assets that are held and used. Host Heather Horn is joined by Beth Paul, Deputy Chief Accountant in PwC’s National Office, to break down what is important. In this episode, you’ll hear:00:28 - An overview of long-lived asset impairments and how asset classes are relevant03:17 - A refresher on how to identify asset groups for the impairment analysis10:28 - When changes to asset groups are necessary and the implications11:48 - How to determine if there is an impairment triggering event14:57 - A discussion on the impairment recoverability test17:18 - A explanation of key considerations for the recoverability test, including which cash flows and periods to include24:18 - How to measure and allocate an impairment lossFor more information, read chapter 5 of our Property, plant, equipment and other

Text us your thoughts on this episodeIn this episode, host Heather Horn sits down with Kyle Moffatt, PwC’s Professional Practice leader, and PwC National Office partners Kevin Vaughn and Valerie Wieman to break down the much-anticipated SEC climate-related disclosures rules.  For more information on the SEC climate-related disclosure rules, refer to our In brief publication.  Note: On March 15, 2024, the US Court of Appeals for the Fifth Circuit temporarily stayed the rules. Next steps, including the timing and location of a potential hearing, are unclear. Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series. With over 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.Kyle Moffatt is PwC’s Professiona

Text us your thoughts on this episodeThe GHG Protocol has been one of the most widely used sustainability reporting frameworks for companies reporting GHG emissions information. With the evolution of the sustainability reporting landscape, including the adoption of regulatory sustainability reporting frameworks both in the United States and globally, the criticality of GHG emissions information and the GHG Protocol is reinforced by its incorporation in the primary sustainability reporting frameworks.In this episode, host Heather Horn sits down with Marcin Olewinski, a PwC Trust Solutions partner, to unpack some of the fundamental judgments in GHG emissions reporting as companies prepare for the shift from a voluntary to mandatory reporting environment.In this episode, you’ll hear:00:44 - An overview of the prominence of GHG emissions reporting across jurisdictions, including the impact of the evolution in the regulatory landscape2:24 - A discussion of the key concepts and definitions that are foundational to

Text us your thoughts on this episodeWe continue our podcast series focused on financial statement presentation.In this episode, host Heather Horn sits down with Bret Dooley, Deputy Chief Accountant in PwC’s National Office leading our financial instruments team, for a refresher on restricted cash – a focus area due to its impact on liquidity and the recent statement from the SEC Chief Accountant on the cash flow statement. Together, they break down the judgments in identifying and presenting restricted cash.In this episode, you’ll hear:2:10 - A refresher on restricted cash, including its not-so-simple definition, its impact on liquidity ratios, and its relevance in the current economic environment9:30 - A discussion of the various types of restrictions imposed on cash and its impact on the classification and reporting of restricted cash, including:10:35 - Distinguishing between self-imposed and legal restrictions15:02 - Contractual restrictions19:39 - Cash collected or remitted on behalf of others 24:45 - Ho

Text us your thoughts on this episodeThe European Union (EU) has ushered in a new era of sustainability reporting, as the Corporate Sustainability Reporting Directive (CSRD) is now effective. With impacts to both EU and non-EU headquartered companies, now is the time to understand the reporting requirements of this sweeping new regulation.Continuing our CSRD series, this week Heather Horn is joined by PwC Netherlands partner Kees-Jan de Vries to discuss the topic of the EU’s green taxonomy disclosures for financial institutions, including how the metrics and key performance indicators differ from the baseline taxonomy disclosures, as well as what financial institutions should be doing to prepare. In this episode, you’ll hear:2:31 - Explanation of the European Union's green taxonomy and its implications9:14 - Discussion on how the green taxonomy is different for financial institutions12:17 - Breakdown of key performance indicators (KPIs)18:58 - Challenges financial institutions face in reporting on the gr

Text us your thoughts on this episodeWe continue our month of podcasts focused on financial statement presentation.In this episode, host Heather Horn sits down with Bret Dooley, Deputy Chief Accountant in PwC’s National Office leading our financial instruments team, for a refresher on a topic that is fundamental to financial reporting for its impact on financial statement ratios – balance sheet offsetting. Together, they break down the complexities involved in determining whether and how to offset balance sheet amounts. In this episode, you’ll hear:1:30 – A refresher on balance sheet offsetting, including its purpose and significance to financial statement users6:15 – A discussion of the general accounting framework, including the four conditions to determine whether a right of setoff exists15:33 – An explanation of the different offsetting arrangements for derivatives 19:11 – A breakdown of the six criteria for balance sheet offsetting of reverse repurchase and repurchase agreements22:59 – Final accounting r

Text us your thoughts on this episodeThe European Union (EU) has ushered in a new era of sustainability reporting, as the Corporate Sustainability Reporting Directive (CSRD) is now effective. With impacts to both EU and non-EU headquartered companies, now is the time to understand the reporting requirements of this sweeping new regulation.Continuing our CSRD series, this week Heather Horn is joined by Peter Flick and Nina Schäfer to discuss the topics of reporting boundaries and other common CSRD implementation questions companies are facing.In this episode, you’ll hear:3:30 – Explanation of the concepts of reporting boundaries and value chain in sustainability reporting8:59 – An analogy of concentric circles to explain the concept of own operations and value chain12:24 – A discussion on the importance of considering subsidiaries in ESG reporting23:01 – Insights on the impacts of leasing contracts and special purpose entities on sustainability reporting33:16 – Context for the implementation guidance provided

Text us your thoughts on this episodeWe continue our month of podcasts focused on financial statement presentation.In this episode, host Heather Horn sits down with Jay Seliber, a partner in PwC’s National Office specializing in business combinations, to share insights on the accounting and reporting considerations for discontinued operations. Together, they unpack the judgments and practical challenges in navigating discontinued operations, an area of increased focus given the current economic environment in which many companies are considering disposing of portions of their businesses.In this episode, you’ll hear:2:27 – An overview of the criteria and qualifications for discontinued operations, including highlights of the key areas of judgment, timing considerations, and implications for businesses13:05 – Insights on the qualifications for held-for-sale treatment 18:40 – Key questions on presentation and classification of discontinued operations after meeting the gating criteria, including:19:01 – Impact to

Text us your thoughts on this episodeThe International Sustainability Standards Board (ISSB) issued final IFRS® Sustainability Disclosure Standards (SDS) in June of 2023. Multiple jurisdictions around the world have signaled their intent to adopt the new standards, including some with fulsome legislative or regulatory proposals.To capture the latest updates regarding the adoption of ISSB standards, Heather Horn sat down with Katie Woods, PwC UK Senior Director, to discuss measures advancing the standards in specific jurisdictions, as well as other important updates on the standard setter’s recent activities.In this episode, you’ll hear discussion of:3:15 – The International Sustainability Standards Board (ISSB) and its role in the global framework4:00 – The first two standards issued by the ISSB, including the general disclosure standard and the climate standard4:19 – Countries moving forward with potential adoption of ISSB standards7:32 – Updates on Singapore's adoption of ISSB standards and its impact

Text us your thoughts on this episodeWe continue our month of podcasts focused on financial statement presentation hot topics. In this episode, host Heather Horn sits down with Pat Durbin, a deputy chief accountant in PwC’s National Office, and Felix Perez, a partner in PwC’s National Office specializing in SEC reporting, to discuss the significance of income statement presentation to the investor community and standard setters. Together, they break down key areas of judgment and the practical challenges involved in income statement presentation and classification.In this episode, you’ll hear:1:34 - The significance of income statement presentation and classification in portraying financial performance, including general reporting considerations and the interaction between income statement presentation and non-GAAP metrics8:50 - The SEC's rules on the form and content of income statements, including considerations for financial institutions21:44 - Income and expense disaggregation reminders, including cl

Text us your thoughts on this episodeInvestors today want to better understand how companies are managing crises and staying resilient, while creating and protecting long-term value in today’s fracturing world. They are looking closely at two areas—emerging technology and sustainability—to gauge whether companies can seize opportunities for reinvention and business transformation, or whether they will instead succumb to rivals.  That’s according to PwC’s most recent Global Investor Survey, which is now in its third consecutive year. To break down some of the survey’s results and their implications for preparers, Heather Horn sat down with Nadja Picard, PwC’s global reporting leader. In this episode, you’ll hear: 3:19 - The importance of sustainability in the context of broader business activity and how it is no longer a siloed topic 5:54 – How investors prioritize agility in managing long-term risks and opportunities 17:25 - The challenges companies face in collecting and managing sustainability data and the

Text us your thoughts on this episodeWe kick off another month of podcasts, this time focused on financial statement presentation hot topics. Drumroll please... This week we are presenting EPS.In this episode, host Heather Horn sits down with John Horan, PwC National Office managing director, to discuss the significance of earnings per share (EPS), focusing on the practical challenges and judgments involved in this not-so-simple, but very closely-watched, computation.In this episode, you’ll hear:00:56 - The significance of EPS to the analyst and investor community02:59 - A refresher of the differences between basic and diluted EPS and a discussion of judgments involved in the computation, including redeemable securities9:50 - A discussion of the impact of changes in capital structure and reorganizations, including stock dividends, stock splits, and IPOs, on the EPS computation20:25 - Reporting reminders, including disclosure requirements and considerations related to subsequent eventsFor more information, rea