PwC's accounting podcast

After 2022 brought proposed ESG disclosures from the EU as part of the Corporate Sustainability Reporting Directive (CSRD), internationally by the International Sustainability Standards Board (ISSB), and in the US by the Securities and Exchange Commission (SEC), many companies began in earnest to mock up potential disclosures, understand gaps in information quality and availability, and establish work plans for creating consistent, reliable reporting. 

This month marks one year since the SEC’s proposal was released, and we wanted to ask – how have companies been preparing over the past year, and what should they be doing for the next year as we move toward mandatory ESG reporting in many jurisdictions? Heather Horn was joined by Brigham McNaughton, a PwC ESG Services & Strategy partner, to unpack these questions and provide the latest updates on what companies can do now to be prepared for upcoming requirements.

In this episode, you’ll hear discussion of:

• 1:54 - Where companies have focused their readiness efforts over the last twelve months
• 8:09 - Dealing with estimation in greenhouse gas reporting
• 14:28 - Disclosure controls and the importance of cross-functional teams
• 21:31 - How companies are re-evaluating their governance, strategy, risks, targets, and goals as they prepare for the new disclosure requirements
• 31:06 - Preparing for mandatory ESG reporting requirements in the European Union under the CSRD
• 36:59 - How companies can work to build mature processes for reporting

Looking for more information on getting ready for mandatory ESG reporting? Check out our publication, Preparing for tomorrow's rules today.

Brigham McNaughton is a partner in PwC’s ESG practice. He has served global clients in a range of industries including utilities, automotive, and financial services, advising on core ESG strategy development and stakeholder engagement. Brigham has also worked closely with the Sustainability Accounting Standards Board on a variety of reporting initiatives.

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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Every Tuesday in March, Suzanne Stephani is taking over the podcast to bring you the latest on different types of financing arrangements - from debt to leases to supplier financings - including how the current macroeconomic environment impacts the accounting. 

To kick off the series, Heather Horn and Suzanne are joined by Marc Jerusalem, a PwC managing director who also specializes in leasing, to discuss how the current macroeconomic environment impacts the accounting for leases.

In this episode, you’ll hear discussion of:

• 2:23 - Recent FASB standard setting on leases between entities that are under common control 
• 7:38 - How rising interest rates may make it more challenging to use an existing borrowing rate to measure a lease
• 14:21 - Remeasurement events that may occur more frequently during times of economic uncertainty and what assumptions may need to be updated as a result of them
• 20:37 - Impairment of right-of-use asset considerations when a company decides to sublease or abandon a leased space
• 31:37 - Frequent questions on the classification of lease activity in the statement of cash flows 

For more information, listen to our other podcasts in PwC’s Leasing Toolkit series and read our publication on frequently asked questions on accounting in uncertain times. 

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 transactions.

Marc Jerusalem is a managing director in PwC’s National Office specializing in leasing. Marc consults with clients on complex lease accounting issues and is a frequent contributor to many related PwC National Office publications.

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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Every Tuesday in February, Andreas Ohl, PwC’s Global ESG Technical Leader, took over the podcast and talked all about one of a company’s most valuable intangible assets, human capital. He discussed what it is and why it matters, how it’s treated in financial and ESG reporting, and how its value is reflected in deals. 

In this final episode of the miniseries, Heather Horn and Andreas are joined by Carrie Duarte, a PwC workforce transformation specialist, to discuss how sophisticated acquirers are creating value through human capital in transactions. They also share insights on how investing in the workforce may create both social value creation (which is the “S” in ESG) and financial value creation. 

In this episode, you’ll hear discussion of:

• 6:30 - Trends in the deals market that are driving outsized returns
• 14:21 - Practical and tactical examples of opportunities identified through deals to create value through the workforce
• 23:37 - The importance of providing a “good job” and managing the investment in the workforce
• 31:37 - How reflecting the voice of the worker in the company’s labor management strategy creates social and financial value creation 

Listen to earlier episodes in this series on the impact of recent demographic trends on the investment in human capital, how a company’s largest asset may not be on balance sheet, and on communicating value through ESG reporting. 

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.

Carrie Duarte is a partner leading PwC's Organization and Workforce Transformation Deals team. Carrie helps CEOs take advantage of the catalyzing event of a transaction to transform their organizations and workforces. 

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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Billed as the largest climate legislation in US history, the Inflation Reduction Act (IRA) includes tax credits, incentives, and other provisions intended to help companies tackle climate change, increase investments in renewable energy, and enhance energy efficiency.

What are the most common ways that companies are planning to take advantage of the Act? What provisions does the Act have that might benefit companies that are not in the energy industry? Heather Horn was joined by Matt Haskins, PwC principal, to unpack these questions and provide the latest updates on the IRS’ guidance process.

In this episode, you’ll hear discussion of:

• 2:45 - The IRA’s key ESG-related provisions
• 5:35 - Updates on IRS guidance on the IRA
• 14:05 - Manufacturing investment tax credits and the application process
• 22:15 - Areas to consider to navigate the IRA effectively
• 26:40 - How new methods of data modeling allow companies to assess when they may qualify for incentives
• 32:25 - How the market is contemplating transactions for direct pay and transferable tax credits

Looking for more information on the Inflation Reduction Act? Check out our previous podcast on ESG incentives in the Inflation Reduction Act.

Matt Haskins is a principal in PwC’s Washington National Tax Services, where he leads the firm's Cleantech tax practice, focusing on renewable energy financing and M&A transactions. In addition to writing and speaking on issues in the renewable energy industry, Matt has co-chaired the energy and environmental taxes working group for the US Council on International Business and served as a delegate for key energy initiatives of the Organization for Economic Cooperation and Development.

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 February, Andreas Ohl, PwC’s Global ESG Technical Leader, will be taking over the podcast and talking all about one of a company’s most valuable intangible assets, human capital. He will discuss what it is and why it matters, how it’s treated in financial and ESG reporting, and how its value is reflected in deals. 

In this episode, Heather Horn and Andreas are joined by Sheri Wyatt, a PwC sustainability specialist, to discuss how we are seeing companies communicate the value of human capital through ESG reporting. 

In this episode, you’ll hear discussion of:

• 7:24 - Best practices in ESG reporting today  
• 11:49 - The importance of using metrics that are tied to value creation in ESG reporting on human capital
• 18:16 - How ESG reporting may bridge the gap in financial reporting (because this investment may not be on balance sheet) 
• 23:32 - Insights on human capital disclosures reported under the SEC’s current rule
• 28:30 - Expectations on the future of human capital reporting considering proposals from the ISSB and EFRAG (CSRD) and the expected proposal from the SEC
• 39:15 - Challenges and opportunities for companies in communicating the value of their workforce

Listen to earlier episodes in this series on the impact of recent demographic trends on the investment in human capital and how a company’s largest asset may not be on balance sheet. And stay tuned for one more episode in the series. 

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.

Sheri Wyatt is a partner in PwC’s Deals practice and a sustainability specialist who helps clients execute on their ESG reporting strategies, including how to navigate the evolving regulatory landscape both in the US and abroad. She has over 20 years of experience advising companies on the adoption of new accounting and financial reporting standards, from assessing current state through operationalizing compliance with new standards and policies.

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.

At the recent annual meeting of the World Economic Forum (WEF) in Davos, PwC and the WEF jointly released a report about critical moves businesses can take to prepare for risks and take advantage of opportunities in climate change adaptation (the process of preparing for, preventing, and mitigating the worst impacts of climate change).

Heather Horn was joined by Emma Cox, PwC’s Global Climate Leader, to discuss some of the key themes that came out of both our white paper as well as the 2023 annual WEF meeting, which Emma attended alongside world leaders.

In this episode, you’ll hear discussion of:

• 4:50 - How climate commitments – and progress toward them – have evolved since the 2015 Paris Agreement
• 12:17 - Managing competing sustainability agendas
• 20:50 - Climate adaptation: definitions and key actions businesses can take
• 31:06 - Who will pay for adaptation
• 31:39 - How measurement and disclosure of sustainability progress has evolved
• 50:13 - Final advice for companies working to optimize their climate agenda

Looking for more information on climate adaptation? Check out our white paper on Accelerating business action on climate change adaptation.

Emma Cox is PwC’s Global Climate Leader, driving the delivery of our client-focused global climate strategy. In addition to previously serving as PwC UK’s Head of Purpose, Emma also led its Sustainability and Climate Change practice, with a team of sustainability and climate change specialists advising public and private sector clients in the UK and internationally on sustainability, development, urbanization, and climate change-related issues.

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 February, Andreas Ohl, PwC’s Global ESG Technical Leader, will be taking over the podcast and talking all about a company’s most valuable intangible asset, human capital. He will discuss what it is and why it matters, how it’s treated in financial and ESG reporting, and how its value is reflected in deals. 

In this episode, Heather Horn and Andreas discuss the current financial reporting landscape when it comes to human capital. 

In this episode, you’ll hear discussion of:

• 1:35 - How human capital is largely shown as an expense in the external financial statements
• 6:15 - Insights on how internal reporting can help companies measure the return on their investment in human capital
• 11:55 - The disconnect that may exist between a company’s market value and book value 
• 15:58 - Why this intangible asset is generally not on the balance sheet today
• 28:20 - What companies and standard setters can do to give better insights into the value of human capital

Listen to the earlier episode in this series on the impact of recent demographic trends on the investment in human capital, and stay tuned for more episodes in the series. Also read our point of view publication on making intangibles count. 

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.

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 Task Force for Climate Related Financial Disclosures (TCFD) framework underpins each of the “big 3" sustainability disclosure proposals issued in 2022. But before it was incorporated in any of these proposals, TCFD was a heavyweight in its own right in terms of the breadth of its adoption. How did TCFD become what it is today?

Heather Horn was joined by Jon Williams, PwC partner and TCFD member, to unpack the history of the TCFD and look ahead to how the framework may continue to shape sustainability reporting in the future.

In this episode, you’ll hear discussion of:

• 2:40 - The TCFD’s history and why it was initially formed
• 12:07 - How the TCFD works to achieve stakeholder consensus on its framework recommendations
• 16:10 - Updates on where adoption of the TCFD framework stands at five years from its founding
• 20:43 - Perspectives on how regulators are raising the bar on TCFD disclosures
• 24:35 - How the TCFD was designed to interact with other existing frameworks, including the Climate Disclosure Project (CDP)
• 29:53 - Updates on the TCFD’s work plan for 2023
• 36:55 - Advice for companies who will be subject to mandatory TCFD disclosures in the future

Looking for more information on TCFD reporting and scenario analysis? Check out our previous podcast on Leveraging TCFD for climate-related disclosures.

Jon Williams is a member of the TCFD and co-leads the PwC UK’s Sustainability & Climate Change practice. With over three decades of experience in sustainable finance and strategy, Jon focuses on issues relating to climate change, biodiversity, water, and poverty alleviation. His clients include financial institutions in both developed and developing economies as well as companies in the retail, consumer goods, healthcare, energy, and mining sectors.

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 February, Andreas Ohl, PwC’s Global ESG Technical Leader, will be taking over the podcast and talking all about a company’s most valuable intangible asset, human capital. He will discuss what it is and why it matters, how it’s treated in financial and ESG reporting, and how its value is reflected in deals. 

To kick off the series, host Heather Horn and Andreas were joined by Zain Siddiqui, a senior economist with PwC Intelligence, to break down the macroeconomic and demographic trends leading to the scarcity of human capital seen today. They’ll also discuss how companies should think about human capital (perhaps differently than before) given these trends. 

In this episode, you’ll hear discussion of:

• 2:27 - What led to the abundant labor supply of the last few decades
• 7:15 - The impact of COVID on the current labor force and the fundamental shift in worker preferences
• 12:43 - How these demographic trends impact economic growth 
• 14:44 - How to create value for your business by viewing human capital as an investment and not an expenditure 
• 25:17 - What investing in the workforce means for businesses
• 38:10 - Final advice when looking ahead

Stay tuned for upcoming podcasts in this series. Listen to our previous podcast with PwC Intelligence for a broader geopolitical and macroeconomic update.  

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.

Zain Siddiqui is a senior economist for PwC Intelligence with a specialty in macroeconomics and finance. He advises stakeholders and clients on the business implications of emerging macro and geopolitical vulnerabilities, and helps them shape business strategy. His research has appeared in books on international economic policy and macroeconomic journals.

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.

In this episode, PwC partners Chris Rhodes and Andreas Ohl join us to discuss our 2023 deals outlook and related accounting considerations. Included are insights on how dealmakers are thinking about value creation as they navigate macroeconomic uncertainties and what finance teams need to know as deals are happening. 

In this episode, you’ll hear discussion of:

• 1:21 - The current deals landscape and outlook for 2023
• 9:30 - Headwinds facing the deals market from the current macroeconomic and geopolitical environment
• 14:12 - Accounting considerations for deal transactions in this type of macroeconomic environment
• 28:36 - How successful dealmakers still find opportunities in divestitures
• 33:58 - Final advice for companies considering deals in 2023

Want to learn more about the 2023 deals outlook? Watch a replay of our webcast or read our report. And for more on accounting considerations, listen to previous podcasts on impairment accounting, including one on impairment of goodwill and other intangibles. 

Chris Rhodes is a partner in PwC's Deals practice. He provides commercial structuring, valuation, and accounting advice for a variety of transactions under both US GAAP and IFRS. He concentrates on delivering strategic transactions such as acquisitions, divestitures, and joint ventures, along with capital raising, capital restructuring, and other financial engineering, including risk management. 

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.

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.