With reductions to revenue and disruptions to supply chains, companies started to feel the economic effects of COVID-19 at the end of the first quarter. How did this affect how they reported their quarterly results? We’re here to share some observations.

In this episode, Heather Horn is joined by Wayne Carnell to discuss how companies addressed the impact of the virus, including the use of non-GAAP measures, in their reports.  

Topics include:

• 0:34 - Overview. We begin by sharing the various ways companies disclosed the impact of COVID-19 in their most recent filings. 
• 3:19 - Non-GAAP. Wayne highlights the rules regarding non-GAAP disclosures and why companies like them. He also discusses how companies approached communicating the impact of COVID-19.
• 14:00 - MD&A and notes. How can companies provide investors with information about COVID-19 that would not be appropriate to include in the financial statements? Wayne explains. 
• 22:53 - What’s next? As we look forward to the second quarter, Wayne discusses what companies should consider in identifying items related to COVID-19.

Wayne Carnall is a former Chief Accountant of the Division of Corporation Finance at the U.S. Securities and Exchange Commission. Wayne has broad and extensive financial reporting and regulatory experience involving domestic and international companies in a wide range of industries. Having served in that role during the financial crisis, Wayne worked with other senior officials at the SEC and other agencies and organizations to address and resolve financial reporting matters of unprecedented complexity in a dynamic political environment. 

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 over 25 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected].