Full disclosure: The balance sheet
06.01.2021 - By PwC's accounting podcast
In our Full disclosure podcast series, we’re bringing you back to the basics on all things related to financial statement presentation and disclosure, from the top of the financial statements through the footnotes. Our inaugural episode this week focuses on general reporting and balance sheet presentation requirements. Kyle Moffatt, a partner in our National Office, is back in the guest seat to set the stage for the series with our host, Heather Horn. Topics include:1:32 - General presentation reminders. GAAP comes first. Kyle reminds our listeners of the FASB codification guidance for interim and annual financial statement presentation for both public and private companies, as well as the incremental guidance from the SEC for public companies.2:37 - Significant accounting policies. Kyle reminds companies how to determine which accounting policies are significant, and encourages listeners to take a fresh look at their disclosures.9:13 - Significant account balances. Kyle outlines the SEC rules regarding when balances should be broken out and presented separately on the balance sheet. 14:53 - Balance sheet classification. Reporting entities are required to present a classified balance sheet. Kyle explains the requirements and how they provide insights for the users of the financial statements.17:55 - Balance sheet offsetting. Kyle breaks down the key criteria that must be met to determine whether you can offset assets and liabilities on the balance sheet. 22:00 - Other considerations. We discuss other important considerations for balance sheet presentation, what the SEC staff focuses on, and key takeaways. Want to learn more? Read the following chapters from our Financial statement presentation guide: Chapter 1: General presentation and disclosure requirementsChapter 2: Balance sheetChapter 29: Interim financial reportingKyle Moffatt is a partner in PwC's National Office where he consults with engagement teams and audit clients on SEC reporting matters. He joined PwC in 2020 after spending almost 20 years with the SEC, most recently as Chief Accountant and Disclosure Program Director in the Division of Corporation Finance. 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, as well as periodic webcasts for the power and utilities industry. With nearly 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.