Pwc's Cfodirect Podcast

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.This next episode of our 2024 SEC comment letter podcast miniseries discusses business combinations. Business combination accounting can be complex, the required disclosures are comprehensive, and these are not routine transactions for most companies – all making this a challenging area that frequently gets the attention of the SEC staff. We discuss the issues most frequently raised by the SEC staff and offer advice to preparers for getting ahead of them.In this episode, we discuss:2:02 – An overview of SEC comment letter trends related to business combinations5:14 – Determining whether a transaction is an asset acquisition or business combination7:34 – The definition of a “business” in US GAAP as compared to SEC rules9:23 – Comments related to omitted disclosures12:39 – Pro forma disclosures and financial statements of acquired or to-be-acquired businesses25:45 – Other reminders and areas of focus related to business co

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.In the fourth episode of our miniseries on the building blocks of greenhouse gas (GHG) emissions reporting, we discuss step 4: measure greenhouse gas emissions, starting with scope 1 emissions. Host Heather Horn and frequent ESG podcast guest Marcin Olewinski, an Assurance partner, are joined by Chris Ostermann, a director in PwC’s Sustainability Services Group, to kick off the first of three episodes focused on measuring greenhouse gases. They will share what they’re seeing in practice working with companies who are calculating these emissions, including successes and (preventable) misapplications.In this episode, they discuss:02:24 – Scope 1 GHG emissions, including identifying sources and a complete inventory07:05 – Methods for measuring scope 1 emissions and how to select a measurement approach16:56 – Challenges associated with collecting data inputs22:53 – Explaining emissions factors and the challenges in selecting

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.In this next episode of our 2024 SEC comment letter miniseries, we discuss accounting for revenue. Revenue is the top line for a reason; it’s closely watched by investors and therefore, the SEC staff as well. From variable consideration to disaggregated revenue disclosure, we discuss the issues most frequently raised by the SEC staff and offer advice to preparers for getting ahead of them.In this episode, we discuss:2:25 – An overview of SEC comment letter trends related to revenue12:20 – Significant judgements and estimates in determining the transaction price23:57 – Timing or pattern of the transfer of control28:10 – Disaggregated revenue disclosures40:45 – Other reminders and areas of focus related to revenue44:22 – Industry-specific considerationsFor more information, see our full analysis of SEC comment letter trends, our Revenue from contracts with customers guide, and Chapter 33 of our Financial statement presenta

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.In the third episode of our miniseries on the building blocks of greenhouse gas (GHG) emissions reporting, we discuss step 3: determine operational boundaries. Host Heather Horn is joined again by Marcin Olewinski, an Assurance partner, and Kelsey Pizza, a senior manager in PwC’s National Office, who illustrate the importance of correctly identifying operational boundaries and the impact on the accuracy of GHG reporting. They also discuss how it’s a critical step to helping organizations clearly define and understand the scope of their emissions.Because different frameworks may prescribe different approaches while others provide some flexibility, it is key to understand your reporting requirements (as discussed in the first episode in this miniseries, Talking GHG: Reporting requirements for greenhouse gas emissions). We’ll highlight different approaches and the impacts (sometimes more significant than one would expect) t

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.We are kicking off our miniseries on 2024 SEC staff comment letters, helping to inform you on the latest trends as you gear up for year end. In this episode we share an overview of the 2024 comment letter trends, as well as insights into the SEC staff’s key priorities.In this episode, we discuss:1:56 – An overview of the SEC comment letter process14:19 – 2024 SEC comment letter themes15:31 – Key SEC staff focus areas related to management’s discussion and analysis18:59 – Key SEC staff focus areas related to non-GAAP measures21:37 – Other reminders and areas that preparers should focus on moving into year endFor more information, see our full analysis of SEC comment letter trends. Additionally, follow this podcast on your favorite podcast app for more episodes. Kyle Moffatt is PwC’s Professional Practice leader, leading a team responsible for working with standard setters and regulators as well as delivering brand-definin

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.This week, host Heather Horn is joined by a chief sustainability officer (CSO), whose impressive background in paleoclimate geology has propelled her into the world of sustainability. Allyson Anderson Book from Baker Hughes provides a practical perspective on her sustainability journey as a CSO. She shares the challenges overcome and perseverance needed in getting to the accomplishments – decarbonization and good reporting on the company’s efforts.In this episode, they discuss:6:23 – A CSO’s view on the role of reporting11:51 – Background on the company and how it is thinking about its emissions profile and its customers’24:55 – The importance of prioritizing data fidelity and management29:56 – What to think about when accounting for emissions33:31 – The pros and cons of absolute versus intensity measurement of emissions46:02 – Expected results when stakeholders are involved in sustainability efforts50:07 – Advice on nav

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.We wrap up our miniseries on loans and investments with a discussion of the accounting for equity interests, a topic that can impact companies across all industries.In this episode, we discuss:2:02 – Equity interests in scope of ASC 321, Investments—Equity Securities13:19 – Determining whether an equity interest has a readily determinable fair value15:10 – An overview of the “measurement alternative,” including:22:27 – Impairment of equity interests25:31 – Identifying observable transactionsFor more information, see chapter 2 of our Loans and investments guide. Also, check out our other episodes in this miniseries:Applying the CECL model to financial asset credit lossesAccounting for debt securities held by corporatesAccounting for loan receivables by corporatesAdditionally, follow this podcast on your favorite podcast app for more episodes.Chip Currie is a partner in PwC’s National Office with nearly 30 years of experie

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.At the intersection of two trending topics, AI and sustainability, there are a myriad of both costs and benefits to consider. Host Heather Horn is joined by Scott Likens, PwC Global Chief AI Engineer, to discuss the environmental impact of AI and the balance between AI's benefits and its environmental footprint.In this episode, they discuss:3:17 – How AI is impacting sustainability8:54 – Why AI and sustainability aren’t necessarily opposing forces17:28 – Practical examples of utilizing AI to optimize energy usage28:22 – The broader benefits of using AI to impact sustainability31:05 – Balancing AI’s benefits with its environmental footprint 38:32 – Advice for both companies and individuals leveraging AILooking for more on AI? Check out PwC’s Artificial Intelligence services as well as resources on responsible AI, including What is responsible AI and how can it help harness trusted generative AI?Scott Likens is the Gl

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.We continue our miniseries on loans and investments with a discussion of the current expected credit losses (CECL) impairment model, applicable to a broad range of financial assets. In this episode, we discuss:3:42 – A refresher on the CECL model8:02 – Impact of the current economic environment on credit losses23:43 – Monitoring and governance of credit losses26:46 – SEC comment letters and other activity related to CECL30:49 – FASB developments related to CECL, including purchased financial assetsFor more information, see chapter 7 of our Loans and investments guide. Also, check out our other episodes in this miniseries, Accounting for debt securities held by corporates and Accounting for loan receivables by corporates. Additionally, follow this podcast on your favorite podcast app for more episodes. Catherine Espino is a partner in PwC’s National Office with 20 years of experience serving large financial institutions,

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.The term “ESG” has been used for over two decades, including in this podcast miniseries title. Host Heather Horn sat down with guest Matt Sekol, Sustainability Global Blackbeltand author of ESG Mindset: Business Resilience and Sustainable Growth, to revisit the complexities of ESG and how companies can rethink the concept to not only build better resilience for the long term, but also find value in reporting.In this episode, they discuss:3:42 – The key messages of ESG Mindset and redefining “ESG”9:44 – How sustainability reporting can contribute to change12:26 – What leaders can do to leverage ESG in a material way20:06 – How companies can strike a balance between ESG and the success of the business35:19 – The interconnectedness of ESG and the macroeconomic environment45:12 – Key takeaway for addressing systemic ESG issuesLooking for the latest developments in sustainability reporting? Follow this podcast on your favorit

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.We continue our miniseries on loans and investments with a discussion of the accounting by corporate entities for loan receivables, which can include items such as trade receivables and other receivables with customers, suppliers, employees and more.In this episode, we discuss:1:43 – The definition of a loan and types of loan arrangements3:18 – Recognition and measurement of loans7:40 – Classification and accounting for loans held for sale or held for investment 18:54 – Recording interest income on loans23:29 – An overview of loan impairmentsFor more information, see chapter 4 of our Loans and investments guide. Also, check out our other episode in this miniseries, Accounting for debt securities held by corporates. Additionally, follow this podcast on your favorite podcast app for more episodes.Chip Currie is a partner in PwC’s National Office with nearly 30 years of experience assisting companies in resolving complex bu

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.Impact accounting is the process of attributing monetary value to disparate pools of datapoints across sustainability topics with the intent of creating comparability to drive investment decisions. This week, host Heather Horn is joined by a special guest from the International Foundations of Valuing Impacts (IFVI), CEO and President, Rob Zochowski, to discuss the relatively new concept of impact accounting and how it can complement existing sustainability reporting for business decision-making. In this episode, they discuss:3:24 – Background on impact accounting and IFVI8:10 – The concept of impact valuation and its role in assigning monetary value to sustainability metrics15:18– Getting global feedback on impact accounting24:12– How impact accounting both measures and values corporate impacts to drive better decision-making29:48 – Leveraging impact accounting for both reporting and decision-making38:02 – Challenges in

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.We kick off our miniseries on loans and investments with an episode on accounting for debt securities for corporate entities. We discuss key considerations applicable to corporates and share insights on some of the more complex areas.In this episode, we discuss:5:31 – Identifying the applicable accounting guidance13:24 – Instruments that qualify as cash equivalents  22:07 – Classification of debt securities and the accounting implications31:36 – Valuation of debt securities36:33 – Financial statement presentation considerationsFor more information, see chapter 3 of our Loans and investments guide. Additionally, follow this podcast on your favorite podcast app for more episodes.Bret Dooley is a Deputy Chief Accountant in PwC’s National Office who leads teams focused on the financial services sectors and accounting for financial instruments. He has over 25 years of experience in the financial services, banking, and capital

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.Host Heather Horn is joined by Mardi McBrien, Chief of Strategic Affairs & Capacity Building at the IFRS Foundation, and Katharina Bryan, Head of International Sustainability Reporting Policy at Amazon, to highlight the PwC and IFRS Foundation NYC Climate Week event: Sustainability disclosure in practice. Together they break down the event and share highlights, practical perspectives, and takeaways for preparers on their own sustainability reporting journeys.In this episode, they discuss:5:03 – What resonated most from the insightful discussions across multiple stakeholder perspectives7:58 – Preparer perspective on approaching regulatory reporting deadlines10:13 – Benefits of the collaboration between the IFRS Foundation and CDP16:05 – How sustainability reporting can drive positive change27:45 – Advice for companies overwhelmed by the abundance of sustainability reporting requirements31:47 – Where to find resources

Text us your thoughts on this episodeWith an unprecedented level of change in recent years, the PCAOB has become a standard setter to watch – not just for audit firms but for companies. The episode brings the latest in PCAOB standard setting developments, including what they mean for preparers. Our guest is Brian Croteau, PwC’s US Chief Auditor, who leads our team that follows all things PCAOB.In this episode, we discuss:3:35 – The current landscape at the PCAOB10:07 – Overview of the PCAOB’s standard setting process15:14 – Newly adopted PCAOB standards related to: 15:44 – Other auditors16:26 – Confirmations18:50 – General responsibilities of the auditor in conducting an audit (AS 1000)19:54 – Technology-assisted analysis of information in electronic form28:53 – Quality control35:12 – Non-compliance with laws and regulations (NOCLAR)39:17 – Other recent PCAOB proposals45:49 – What's on the horizon for PCAOB standard setting For more information on these topics see our publications: SEC approves PCAOB fou

Text us your thoughts on this episodeIn the second episode of our miniseries on the building blocks of greenhouse gas (GHG) emissions reporting, we discuss how to establish organizational boundaries. Host Heather Horn is joined again by Marcin Olewinski, an Assurance partner, and Kelsey Pizza, a senior manager in PwC’s National Office, who illustrate the importance of including the correct entities, assets, and operations through real world examples.Different frameworks may prescribe different approaches while others provide some flexibility so it is key to understand your reporting requirements (as discussed in the first episode in this miniseries, Talking GHG: Reporting requirements for greenhouse gas emissions). We’ll highlight different approaches and the impacts (sometimes more significant than one would expect) that an organizational boundary can have on reporting.This episode discusses:2:48 – What it means to establish organizational boundaries 4:33 – The three organizational boundary approaches outlin

Text us your thoughts on this episodePwC provides a summary of the latest accounting, financial reporting, and regulatory updates to support your quarterly reporting.The adoption of the new segment reporting guidance is just around the corner for many public companies. As we approach year end, we begin this edition of The quarter close by providing timely reminders for those preparing to adopt that guidance. We also take a closer look at annual goodwill impairment assessments, which companies often elect to perform this time of year. In regulatory developments, we provide the latest updates on sustainability reporting and highlight new chapters in our global Sustainability reporting guide, a one-stop shop for finance and sustainability teams as they comply with the reporting frameworks expected to have the broadest impact globally. We also summarize recent SEC staff guidance on the SEC’s new cybersecurity incident reporting requirements.Expect significant activity in FASB standard setting in the upcoming mont

Text us your thoughts on this episodeWe continue our miniseries on foreign currency accounting with an episode on foreign currency remeasurement and translation. Foreign currency measurement is the process by which an entity expresses transactions whose terms are denominated in a foreign currency in its functional currency. Foreign currency translation is the process of expressing a foreign entity’s functional currency financial statements in the reporting currency. In this episode, we discuss: 03:09 – An overview of the accounting for foreign currency remeasurement and translation05:56 – Measurement of foreign currency transactions09:56 – Exchange rate considerations22:26 – Translating financial statement of foreign entities 29:00 – Releasing cumulative translation adjustments (CTA)For more information see chapters 4 and 5 of our Foreign currency guide. Also, check out our other episode in this miniseries, Foreign currency accounting – Determining functional currency. Additionally, follow this podcast on you

Text us your thoughts on this episodeThis week we introduce a miniseries on the building blocks of greenhouse gas (GHG) emissions reporting. To kick off the miniseries, host Heather Horn is joined by Marcin Olewinski, an Assurance partner, and Kelsey Pizza, a senior manager in PwC’s National Office, to give an overview of the process and zero in on the first step, understanding reporting requirements. They highlight the GHG Protocol's foundational role and its similarities and differences with other standards.In this episode, they discuss:02:22 – Background on the building blocks of GHG emissions reporting04:30 – The history of the GHG Protocol and how it’s used today19:16 – How the GHG Protocol interacts with other frameworks, including the European Sustainability Reporting Standards and IFRS® Sustainability Disclosure Standards 31:08 – Advice for companies for understanding GHG reporting requirements and interoperabilityFor more information on GHG emissions reporting, including the five-step process ou

Text us your thoughts on this episodeWe kick off our miniseries on foreign currency accounting with an episode on determining functional currency, which is the currency of the primary economic environment in which a distinct and separable operation operates.In this episode, we discuss:03:52 – Identifying distinct and separable operations19:01 – Determining functional currency25:45 – Common pitfalls in evaluating functional currency 37:37 – Changes in functional currency40:19 – Highly inflationary economiesFor more information, see chapter 3 of our Foreign currency guide. Additionally, follow this podcast on your favorite podcast app for more episodes.Bret Dooley is a Deputy Chief Accountant in PwC’s National Office who leads teams focused on the financial services sectors and accounting for financial instruments. He has over 25 years of experience in the financial services, banking, and capital markets industries. Bret focuses on emerging financial reporting issues related to financial instruments, developing