PwC's accounting podcast

Every Tuesday in July, Jay Seliber is taking over the podcast to share insights on business combinations, which are often significant events in a company’s life cycle. Jay takes us on a journey through a deal, beginning with the complexities of the overall acquisition accounting model, then diving into some of the more complex areas—identifying the accounting acquirer, accounting for contingent consideration, and reporting with the SEC.

To continue the series, Heather and Jay are joined by Matt Sabatini to share insights on the identification of the accounting acquirer, a key judgment that impacts the remaining accounting conclusions in the acquisition model.

In this episode, you’ll hear:

• 1:46 - A discussion of the importance of determining the account acquirer as the starting point, and the downstream implications of that determination
• 3:50 - An overview of the accounting framework from the acquirer’s perspective and the intersection with consolidation standards 
• 6:18 - Insights on performing a control assessment and a discussion of key indicators of control
• 17:30 - Accounting for the newco created as a result of a business combination
• 25:01 - The distinction between the legal acquirer versus accounting acquirer, including the financial reporting implications of that distinction, and the complexities of “reverse mergers”
• 34:40 - Final advice for clients dealing with business combinations

For more information, read chapter 2 of our Business combinations guide. Additionally, check out our prior podcasts on the VIE accounting model and the prior podcast in this miniseries. 

Jay Seliber is a partner in PwC’s National office. He leverages over 30 years of experience to help clients with their most complex accounting matters, particularly in the areas of mergers and acquisitions, revenue recognition, stock compensation, earnings per share, employee benefits, restructurings, impairments, and financing transactions. Jay is presently PwC's representative on the FASB's Emerging Issues Task Force.

Matt Sabatini is a partner in PwC's National office who helps clients and engagement teams navigate the accounting and financial reporting for complex transactions. He specializes in the accounting for M&A, corporate reorganizations, recapitalizations, joint ventures, and other investments.

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.

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

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The International Sustainability Standards Board (ISSB) issued final IFRS® Sustainability Disclosure Standards on June 26, 2023. While IFRS Sustainability Disclosure Standards are not yet required in any jurisdiction, multiple jurisdictions around the world have already signaled their intent to adopt the new standards, with additional jurisdictions expected to do so now that the standards are final.

What can companies find inside the new Sustainability Disclosure Standards? This week, Heather Horn was joined by Katie Woods, PwC UK director, to discuss the expected breadth of adoption internationally and the important considerations in advance of adoption.

In this episode, you’ll hear discussion of:

• 1:48 - The final IFRS Sustainability Disclosure Standards: IFRS S1 and IFRS S2
• 7:06 - The current status of adoption of the Sustainability Disclosure Standards in international territories
• 11:43 - The interconnectivity between IFRS Sustainability Disclosure Standards and IFRS Accounting Standards
• 19:12 - Key changes between the exposure drafts and the final standards
• 26:42 - Factors to consider when identifying and disclosing sustainability risks and opportunities
• 38:35 - Final advice for companies looking to prepare for adoption of these standards

Looking for more information on the ISSB and ESG reporting? Check out our podcast with ISSB Vice-Chair Sue Lloyd on the launch of the final ISSB standards. For more on the final standards, read our In brief. 

Katie Woods is a Director in PwC's Global Accounting Consulting Services group and advises on ESG and international accounting standards. Katie specializes in the new and emerging ESG reporting frameworks, working across the PwC Network. Katie is a frequent speaker on a range of ESG and accounting topics at national and international seminars.

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.

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

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

Every Tuesday in July, Jay Seliber is taking over the podcast to share insights on business combinations, which are often significant events in a company’s life cycle. Jay takes us on a journey through a deal, beginning with the complexities of the overall acquisition accounting model, then diving into some of the more complex areas— identifying the accounting acquirer, accounting for contingent consideration, and reporting with the SEC. 

To kick off the series, Jay shares insights on the foundations of acquisition accounting, including key areas of judgment in the model.

In this episode, you’ll hear discussion of:

• 1:58 - The importance of understanding acquisition accounting, even in times of low deal volume
• 3:50 - The foundational accounting considerations for business combinations, including the determination of which transactions qualify as business combinations, and the implications on the control assessment
• 8:04 - The acquisition method, including how to account for the various forms of consideration exchanged in a transaction
• 12:40 - The complexities involved in step acquisitions and partial acquisitions as well as their impact on the application of acquisition accounting
• 17:46 - Insights on the measurement of assets and liabilities acquired in a business combination
• 21:24 - The measurement and allocation of goodwill acquired in a business combination, including tips for bookkeeping of goodwill
• 29:43 - Reminders related to measurement period and conforming accounting policies
• 38:17 - Final advice for getting prepared and dealing with a live deal

For more information, read our Business combinations guide and listen to our prior podcast on disclosures required in business combinations. Additionally, refer to our In the loop on the impact of acquiring an asset vs. a business.

Jay Seliber is a partner in PwC’s National office. He leverages over 30 years of experience to help clients with their most complex accounting matters, particularly in the areas of mergers and acquisitions, revenue recognition, stock compensation, earnings per share, employee benefits, restructurings, impairments, and financing transactions. Jay is presently PwC's representative on the FASB's Emerging Issues Task Force.

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.

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

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

The European Union’s (EU’s) Foreign Subsidies Regulation (FSR) was enacted to extend existing EU state aid rules, which govern the fairness of trade among states within the EU, to subsidies received from jurisdictions outside the EU, and includes incentives such as those provided by the US Inflation Reduction Act (IRA).

What are the parameters of the new regulation, and how could it impact the realizability of climate incentives for your company? Heather Horn was joined by Barry Murphy and Allard Knook, PwC partners, to unpack these questions and provide the latest insights on the FSR, as well as available EU tax incentives.

In this episode, you’ll hear discussion of:

• 2:38 - How the US IRA has shaped global regulatory agendas for state aid
• 8:13 - How the EU is providing its own incentives currently
• 17:14 - An overview of the Green Deal Industrial Plan
• 24:02 - The FSR rules, and their potential impact to non-EU companies
• 36:33 - The underlying policy objectives of the FSR, and how the FSR complements EU climate incentive funds
• 43:07 - Final advice to companies affected by the new regulation and four steps they can take to prepare

Looking for more information on the FSR? Register for our upcoming webcast on July 12. For more information on the IRA, check out our previous podcast on ESG incentives in the Inflation Reduction Act and read our In depth. 

Barry Murphy is PwC’s Global ESG leader for Tax and Legal Services. Based in the UK, he has 20 years of experience advising clients on their domestic and international tax affairs. He is also focused on driving compliance solutions with the digital first approach. 

Allard Knook is the Public Sector Legal leader for PwC Netherlands, with over 20 years experience in government finance, including subsidy programs both at the national and European level.

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.

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

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

The International Sustainability Standards Board (ISSB) issued final IFRS® Sustainability Disclosure Standards on June 26. This included IFRS S1, which provides the core framework for the disclosure of material information about sustainability-related risks and opportunities across an entity’s value chain, and IFRS S2, which is the first thematic standard issued that sets out requirements for entities to disclose information about climate-related risks and opportunities.

What’s ahead for sustainability reporting globally now that these standards are final? This week, Heather Horn was joined by Sue Lloyd, Vice-Chair of the ISSB, to discuss the complex process of finalizing its global baseline standards, the forthcoming impact to companies, and the expected breadth of adoption internationally.

In this episode, you’ll hear discussion of:

• 1:26 - How the ISSB brought the standards to the finish line, including the biggest obstacles along the way
• 10:12 - Noteworthy changes from the initial draft standards to the final versions
• 17:06 - The importance of interoperability across jurisdictions and regulatory frameworks
• 21:39 - The status of jurisdictional adoption of the standards
• 26:08 - The barriers to building capacity for reporting under the new IFRS Sustainability Disclosure Standards across global value chains
• 29:10 - How the investor focus of the IFRS Sustainability Disclosure Standards provides an important reason for companies to consider adoption
• 33:07 - How the key features of IFRS S1 and IFRS S2 relate to each other and to other sustainability reporting standards
• 37:03 - The current and future outlook of the ISSB agenda consultation

Want to hear more about the ISSB? Listen to our previous podcasts on its capacity building. And for more on the final standards, read our In brief and refer to additional resources on IFRS S1 and IFRS S2 linked inside from the ISSB.

Sue Lloyd is the Vice-Chair of the ISSB and played a leading role in its establishment. Previously she served as a member and then Vice-Chair of the International Accounting Standards Board (IASB), and as Chair of the IFRS Interpretations Committee. Prior to becoming an IASB member, Ms. Lloyd worked for the IFRS Foundation as a senior technical director, leading the development of new IFRS Accounting Standards, and as director of capital markets with responsibility for the IASB’s reform of accounting for financial instruments.

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.

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

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

Every Tuesday in June, Angela Fergason is taking over the podcast to share the latest in her areas of specialty — including recent trends in revenue, how to consider whether your company is a principal or agent when recognizing revenue, software costs, and restructurings.

To continue the series, Angela shares insights on some accounting implications of workforce restructuring, including the different accounting models available for termination benefits.

In this episode, you’ll hear:

• 1:08 - An overview of the various accounting models applicable to workforce restructuring events
• Insights on accounting for:
  • 3:55 - One-time involuntary benefits, including severance payments
  • 8:54 - Termination benefits under an existing plan
  • 14:50 - Voluntary termination benefits and other benefit combinations 
  • 20:03 - Modifications of stock-based compensation awards, including both vested and unvested awards
  • 28:36 - Extending the exercise period of stock-based compensation awards
• 31:14 - Final advice on accounting for workforce restructuring events, including non-GAAP measures and restructuring charges

For more information on severance payment arrangements and stock-based compensation awards, read Chapter 8 of our Pensions and employee benefits guide. For more information on modifications of stock-based compensation awards, read Chapter 4 of our Stock-based compensation guide. Additionally, check out our prior podcast on non-GAAP measures.

Angela Fergason is a partner and standard setting leader in PwC's National Office who specializes in accounting for revenue and employee compensation arrangements. She also consults on a range of financial reporting issues impacting technology companies. 

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.

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

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

PwC recently conducted research based on our most recent Global CEO Survey and Global Investor Survey to understand a key question: how much alignment is there between company leadership and the expectations of investors on ESG issues? The results were insightful, and might even surprise you. 

This week, Heather Horn was joined by Nadja Picard, PwC Global Reporting Leader, to break down the results and discuss the differing expectations between CEOs and investors. They also address how CFOs and their teams can help companies better meet investor expectations on sustainability.

In this episode, you’ll hear discussion of:

• 1:36 - The research: What the data from the Global Investor Survey and CEO Survey says
• 15:14 - Where there may be gaps in what investors are expecting, and the importance of creating a strategy to progress in closing the gaps
• 22:08 - How companies are embedding sustainability reporting in their processes and systems      
• 32:30 - How CFOs and their organizations are leading in communicating progress on climate
• 38:06 - The reporting landscape: A look at other important sustainability topics (besides climate) that will drive action
• 42:16 - Final advice for companies looking for better alignment with investor expectations 

Nadja Picard is PwC’s Global Reporting Leader. In this role, she leads PwC’s global initiative to help clients transform their corporate reporting to meet investor and stakeholder demands for trusted and assured reporting beyond financial reporting. Nadja also advises companies on the accounting, corporate reporting, and investor relations requirements in advance of capital markets transactions, especially IPOs.

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.

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

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

We begin this edition of The quarter close with a closer look at the accounting for tax credits, including those included in the Inflation Reduction Act of 2022, as more companies look for opportunities to take advantage of these incentives. Looking for an update on SEC comment letter trends? Head to Ask the National Office, where we provide the latest areas of focus along with other timely financial reporting reminders.

Although the SEC has not yet released its final rules on climate disclosures, many US companies will be impacted by global sustainability reporting frameworks that are nearing finalization. We provide the latest updates and links to additional resources. In other regulatory developments, the SEC issued final rules expanding the disclosure requirements for share repurchases, which will be effective in 2023 for many registrants.

In standard-setting updates, we summarize the feedback on new income tax disclosures proposed by the FASB. Meanwhile, the FASB continues to make progress on its other active projects, including accounting for software costs. We keep you up to date on recent decisions as those projects develop.

In this edition of The quarter close, we highlight these and other relevant accounting and reporting topics you should consider as you close out the second quarter of 2023.

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

Every Tuesday in June, Angela Fergason is taking over the podcast to share the latest in her areas of specialty — including recent trends in revenue, how to consider whether your company is a principal or agent when recognizing revenue, software costs, and restructurings.

To continue the series, Heather Horn and Angela are joined by Mike Coleman to share insights on accounting for software costs and provide an update on the FASB’s project on software costs.

In this episode, you’ll hear:

• 1:38 - Considerations when accounting for software costs across industries, including the impact of digital transformations and the possible impact of new FASB standards in progress
• 6:17 - An overview of current guidance, including the two accounting models for software (externally marketed software and internal use software)
• 10:13 - Accounting considerations from the perspective of the software vendor
• 14:51 - Accounting considerations from the perspective of the software buyer
• 17:03 - An update on the FASB’s project to modernize accounting for software costs
• 25:29 - Final advice to clients when accounting for software costs

For more information on accounting for software costs, read our Software costs guide. Also, to stay updated on the status of the FASB’s project to modernize software costs, refer to the FASB website.

Angela Fergason is a partner and standard setting leader in PwC's National Office who specializes in accounting for revenue and employee compensation arrangements. She also consults on a range of financial reporting issues impacting technology companies. 

Mike Coleman is a partner in PwC's National Office with over 30 years of experience. Mike specializes in accounting for revenue and software arrangements and has served technology clients for much of his career. In addition, Mike has represented the firm on the AICPA Software Task Force.

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.

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

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

The European Commission has adopted a set of proposals, known as the European Green Deal, including the Corporate Sustainability Reporting Directive (CSRD), which marks a new era of sustainability reporting in the EU. Under the CSRD, companies will soon have to report on a wide range of environmental, social and governance matters in compliance with European Sustainability Reporting Standards (ESRS).

On June 9, the European Commission released revised ESRS for public feedback. For this episode, Heather Horn was joined by Andreas Ohl, a PwC National Office Partner and Global sustainability topic team leader and Emily Kirsch, a PwC National Office Director who is following sustainability-related projects from accounting standard setters in the EU, to share their insights. Feedback is due July 7th, 2023.

In this episode, you’ll hear:

• 1:48 - An overview of the revised European Sustainability Reporting Standards
• 7:52 - The biggest takeaways - including the changes in the proposed standards from earlier drafts
• 12:40 - Considerations of phase-in requirements to help companies apply the standards
• 18:45 - Considerations of interoperability with other sustainability reporting standards, including those from the ISSB, SEC, and GRI
• 23:15 - Recommendations for companies seeking to provide input on the draft standards during the 4-week public comment period
• 26:03 - Expectations for timing of implementation of the finalized standards
• 28:44 - Final advice for companies preparing for implementation of the new standards

For more information on the revised draft European Sustainability Reporting Standards, read our In brief. Additionally, a replay of the European Commission's presentation on the revised draft ESRS can be found on European Financial Reporting Advisory Group’s (EFRAG) website. Lastly, to hear more on the status of the "big three" sustainability proposals (and earn CPE credit), listen to PwC’s Q2 2023 Quarterly accounting webcast.

Andreas Ohl is a partner in PwC's National Office focused on thought leadership, standard setting, and mergers and acquisitions under US GAAP and IFRS. In addition to his US responsibilities, he leads the sustainability topic team for the PwC global network. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's in-process R&D guide, and has served as a member of the FASB's Valuation Resource Group.

Emily Kirsch is a director in PwC's National Office focused on sustainability reporting thought leadership and standard setting in the EU. She has more than 12 years of experience advising both public and private companies in navigating complex accounting and financial reporting topics during periods of change in an organization. 

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

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