PwC's accounting podcast

After years of increasingly vocal demand for enhanced transparency about ESG matters from investors and other stakeholders, regulators and standard setters in various jurisdictions issued definitive proposals to transform ESG reporting in 2022.

So far this year, proposed ESG disclosures have been released in the European Union (EU) as part of the Corporate Sustainability Reporting Directive (CSRD), internationally by the International Sustainability Standards Board (ISSB), and in the US by the SEC.

These “big three” proposals would each require expansive sustainability disclosures — although their proposed scopes and other details vary. In this episode, Heather Horn, partner in PwC’s National Office, brings you an audio version of our In the loop comparing the three proposals. 

In this podcast, you’ll hear:

• 1:01 - Background on the “big three” proposals
• 12:45 - Comparison of the general features of the proposals
• 17:30 - Differences in concepts of materiality
• 22:01 - Overview of respective targets and transition plan disclosure requirements
• 26:31 - Overview of respective greenhouse gas (GHG) emissions reporting requirements
• 31:01 - Comparison of GHG scope 1 and scope 2 disclosures
• 35:43 - Comparison of GHG scope 3 disclosures
• 39:02 - Comparison of assurance requirements
• 43:01 - Overview of effective dates and transition

Refer also to the print version, Navigating the ESG landscape. For further insights, see:

• The SEC wants me to disclose what? The SEC’s climate disclosure proposal
• What's CSRD? You should already know
• What you need to know about the ISSB's Exposure Drafts

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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PwC provides a summary of the latest accounting, financial reporting, and regulatory updates to support your quarterly reporting.

In the third quarter of 2022, President Biden signed the Inflation Reduction Act into law, billed as the largest climate legislation in US history. In addition to extending and creating numerous tax credits and incentives, the legislation enacts a new corporate alternative minimum tax and an excise tax on stock buybacks. We take a closer look at the provisions with potential financial reporting implications. Additionally, you’ll want to make note of the SEC’s recently finalized rules on executive compensation disclosures that may impact your next proxy.

Many companies are thinking about goodwill impairment testing, either in connection with their annual test or triggered by current economic conditions. In Ask the National Office, we provide timely reminders on impairment testing, including how rising costs and interest rates could have an impact. 

On the regulatory front, we provide updates on ESG reporting proposals and highlight steps you should take now to prepare for climate reporting. In standard-setting updates, we summarize the FASB’s activities this quarter, including the latest on the segment reporting project.

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 third quarter of 2022.

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

In our Toolkit podcast series, we take a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering impairments – a complex topic with a variety of accounting and reporting considerations.

In this episode, Heather Horn was joined by PwC National Office partner Matt Sabatini and PwC managing director Adam Smith to discuss another common area for impairment questions: long-lived assets. 

In this episode, you will hear them discuss:

• 1:20 - An overview of the impairment model for long-lived assets
• 7:53 - How to identify an asset group when performing an impairment test on assets to be held and used
• 11:58 - Types of impairment triggers and the two-step impairment test for assets to be held and used
• 31:42 - Right-of-use asset impairment considerations
• 33:14 - Impairment accounting under the held-for-sale model
• 36:44 - Key reminders for companies assessing the potential impairment of long-lived assets

Want to learn more? Listen to other episodes in our impairment toolkit series on inventory and other current assets and financial instruments, along with previous podcasts on impairment accounting, including accounting for goodwill and other impairments and answers to your impairment valuation questions.

Adam Smith is a managing director at PwC with over 20 years of valuation experience. His experience includes performing valuations of businesses, business interests, intangible assets, and derivatives. Adam’s valuation specialization supports a wide range of purposes, including financial reporting, litigation support, corporate planning and consulting, and mergers and acquisitions. 

Matt Sabatini is a partner in PwC's National Office with over 20 years of experience helping 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].

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

In our Toolkit podcast series, we take a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering impairments – a complex topic with a variety of accounting and reporting considerations.

In this episode, Heather Horn was joined by Bret Dooley, a partner in the National Office, and Shannon Detling, a partner in the Financial Markets practice, to discuss key considerations when working through the impairment accounting framework for financial instruments. 

In this episode, you will hear them discuss:

• 0:38 - An overview of the impairment model for equity and available-for-sale debt securities
• 6:07 - How current market conditions are impacting impairment assessments
• 11:15 - Highlights of the current expected credit losses (CECL) model for amortized cost assets
• 17:12 - Effect of macroeconomic trends when determining credit losses under CECL
• 29:03 - Consideration of risks and relevant controls in the credit loss estimation process
• 33:16 - Credit outlook for the future based on current trends
• 38:12 - Key reminders for companies thinking through the impairment model for financial instruments

Want to learn more? Refer to the first episode in our impairment toolkit series on inventory and other current assets, along with previous podcasts on impairment accounting, including accounting for goodwill and other impairments and answers to your impairment valuation questions. Stay tuned for more insightful episodes in the coming weeks.

Bret Dooley is a Deputy Chief Accountant in PwC’s National Office and the financial instruments accounting leader. He has over 25 years of experience specializing in the financial services, banking, and capital markets industries. Bret focuses on emerging financial reporting issues relating to financial instruments, developing interpretive guidance, and assisting clients in resolving complex accounting matters.

Shannon Detling is a Partner within PwC’s Financial Markets group, specializing in financial instruments, financial risk management, and financing transactions. He has extensive knowledge of capital markets, changing regulation and policy, and evolving market conditions. Shannon advises clients on how to achieve their objectives and assists them in execution from strategy through to operations, valuation, and reporting, including design, implementation, and integration of systems, processes, and controls.

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.

With ESG top of mind for many companies, we’re continuing our podcast series looking at how the current and future reporting landscape may impact individual industries. This week, guest host Casey Herman, PwC’s US ESG leader, was joined by PwC specialists Scott Thompson and Mark Roslin to discuss the current state of climate and ESG reporting in the aviation industry and the related challenges.

In this episode, our guests discuss:

• 1:45 - Technologies on the horizon that have the potential to impact the aviation industry’s greenhouse gas emissions profile
• 8:35 - Incentives for sustainable aviation fuel in the Inflation Reduction Act
• 16:42 - Challenges of reporting under the SEC climate disclosure proposal for the aviation industry
• 26:46 - Navigating social and governance considerations in the aviation industry

Listen to our previous podcast that provides insights into the ESG disclosures that matter to investors. Also refer to the text or audio version of our In the loop, The SEC wants me to disclose what?

Scott Thompson is PwC's Global Aerospace & Defense Leader, leading a team of 1,700 professionals delivering audit, tax, and advisory services to the world’s top aerospace and defense companies. Scott is a widely recognized expert in the industry, with his commentaries frequently featured in industry publications and other media outlets. Scott also hosts the annual Aerospace & Defense Finance Executive Roundtable.

Mark Rosling is a director in PwC’s Trust Solutions ESG practice. Mark works with clients to establish the controls, processes, and structures needed for accurate ESG reporting, in addition to helping companies integrate ESG into their corporate reporting.

Casey Herman is PwC’s US ESG Leader. Casey has over 35 years of experience leading and working on the audits of many significant, complex clients and is a member of the Edison Electric Institute's Wall Street Advisory Group, the Electric Power Research Institutes Advisory Council, and the NYU Stern Business School Center for Sustainable Business Advisory Council.

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

In our Toolkit podcast series, we take a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering impairments – a complex topic with a variety of accounting and reporting considerations.

In this episode, Heather Horn was joined by PwC partner Pat Durbin to discuss key considerations when working through the impairment accounting framework, including a focus on impairment considerations for inventory and other current assets. 

In this episode, you will hear them discuss:

• 1:05 - An overview of current macroeconomic factors that contribute to the impairment of assets
• 5:32 - An introduction to the impairment framework
• 12:01 - Impairment triggers for non-financial assets, including examples seen in practice
• 22:38 - Sector-specific considerations to keep in mind
• 25:10 - The inventory impairment model
• 31:53 - Impairment accounting for other current assets
• 38:43 - Key reminders as companies think through the impairment model

Want to learn more? Refer to our previous podcasts on impairment accounting, including accounting for goodwill and other impairments and answers to your impairment valuation questions. Stay tuned for more insightful episodes in the coming weeks.

Pat Durbin is a Deputy Chief Accountant, leading the revenue and liabilities division in PwC’s National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.

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.

With ESG top of mind for many companies, we’re continuing our podcast series looking at how the current and future reporting landscape may impact individual industries. This week, guest host Casey Herman, PwC’s US ESG leader, was joined by PwC partners Brittany Schmidt and David Challen to discuss the current state of climate and ESG reporting in the banking and capital markets industry, the related challenges, and how to best prepare to address them.

In this episode, our guests discuss:

• 1:37 - Why the banking and capital markets industry has been at the forefront of voluntary ESG reporting
• 6:41 - Industry themes in responses to the SEC’s climate proposal
• 14:37 - Key requirements of the SEC’s proposal and difficulties financial services companies may face addressing them
• 20:39 - How financial services companies are thinking about the proposed scope 3 disclosure requirements
• 29:39 - Forward-looking disclosure requirements and how to prepare for the proposal’s implementation
• 35:51 - Final thoughts on the proposed disclosure requirements

Listen to our previous podcast that provides insights into the ESG disclosures that matter to investors. Also refer to the text or audio version of our In the loop, The SEC wants me to disclose what?

Brittany Schmidt is a partner in PwC’s financial services consulting practice with over 15 years of experience helping banks and other financial services clients navigate the rapid pace of change in the regulatory and business landscape. Brittany is a firm-designated ESG champion for the financial services sector.

David Challen is a partner in PwC’s banking and capital markets Trust Solutions practice with over 15 years of industry experience. He has worked with clients ranging from large, multinational banking institutions to broker-dealers and asset management advisors and funds. David is a firm-designated ESG champion for the financial services sector.

Casey Herman is PwC’s US ESG Leader. Casey has over 35 years of experience leading and working on the audits of many significant, complex clients and is a member of the Edison Electric Institute's Wall Street Advisory Group, the Electric Power Research Institutes Advisory Council, and the NYU Stern Business School Center for Sustainable Business Advisory Council.

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

In our Toolkit podcast series, we take a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering stock-based compensation – a complex subject with a variety of accounting and reporting considerations.

In this episode, Heather Horn was joined by PwC partners Gina Klein and Jay Seliber to discuss the complexities of stock-based compensation accounting arising from merger and acquisition activity. 

In this episode, you will hear them discuss:

• 1:49 - Key business issues associated with stock-based awards in a transaction  
• 6:14 - Accounting considerations for awards from the sale of a business
• 11:03 - Modifying awards in response to a planned change in control
• 20:36 - Considerations for vesting conditions tied to the closing of a transaction 
• 24:05 - Transactions where the buyer replaces the seller’s awards
• 29:24 - Other common examples of award structuring as part of M&A activity
• 40:25 - Key points when accounting for stock-based awards during transactions

Want to learn more? Refer to previous episodes in our Compensation toolkit series on challenges for private company awards, making sense of stock award modifications, equity or liability classification, and unraveling complex vesting conditions. Also refer to our Stock-based compensation guide for more helpful information.

Gina Klein is a partner leading PwC’s HR Accounting Advisory practice in Workforce Transformation where she works with companies to address the financial reporting, design, and operational issues associated with employee compensation, including stock compensation, pension plans, and other employee benefit arrangements. Gina has also spent time in PwC’s National Office, advising clients on complex accounting matters related to employee compensation under both IFRS and US GAAP.

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.

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

With ESG top of mind for many companies, we’re continuing our podcast series looking at how the current and future reporting landscape may impact individual industries. This week, guest host Casey Herman, PwC’s US ESG leader, was joined by PwC partners Jennifer Kosar and Erica Chase to discuss the current state of climate and ESG reporting in the insurance industry and the associated challenges.

In this episode, our guests discuss:

• 1:51 - The current state of climate and ESG reporting in the insurance industry and areas of focus
• 11:35 - Challenges and concerns insurers are thinking about as they work through ESG reporting
• 17:34 - Planning to comply with the proposed reporting requirements while protecting proprietary information
• 23:55 - The impact of the proposed footnote disclosures on the industry and how companies are planning for the requirements
• 31:15 - Navigating the overlapping layers of state, federal, and international reporting requirements
• 37:41 - What industry leaders are doing now to address the new ESG reporting requirements, and what’s to come

Listen to our previous podcast that provides insights into the ESG disclosures that matter to investors. Also refer to the text or audio version of our In the loop, The SEC wants me to disclose what?

Jennifer Kosar is a partner in PwC’s Digital Assurance and Transparency practice, helping clients in the financial services industry through the design and execution of governance, risk management, audit, and compliance programs throughout their organization. Recently, Jenn has focused on providing support to her clients on the risks and opportunities that ESG creates for the financial services industry.

Erica Chace is a partner in PwC’s Trust Solutions practice, specializing in providing assurance services to insurance companies. Erica supports PwC’s Sustainability Services group, which involves helping clients develop their ESG strategy and assess relevant reporting requirements.

Casey Herman is PwC’s US ESG Leader. Casey has over 35 years of experience leading and working on the audits of many significant, complex clients and is a member of the Edison Electric Institute's Wall Street Advisory Group, the Electric Power Research Institutes Advisory Council, and the NYU Stern Business School Center for Sustainable Business Advisory Council.

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

In our Toolkit podcast series, we take a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering stock-based compensation – a complex subject with a variety of accounting and reporting considerations.

In this episode, Heather Horn was joined by PwC National Office partners Jay Seliber and Ken Stoler to discuss private company-specific accounting considerations for stock compensation.

In this episode, you will hear them discuss:

• 1:30 - Key differences between public and private companies when accounting for equity-classified stock awards 
• 9:03 - Private company accounting considerations for liability-classified stock awards
• 13:38 - An overview of profits interest awards commonly seen at private companies
• 21:20 - Equity restructurings and key points to keep in mind
• 33:08 - Accounting for loans given to employees to purchase stock
• 50:18 - Where to find more information on stock compensation for private companies

Want to learn more? Refer to previous episodes in our Compensation toolkit series on making sense of stock award modifications, equity or liability classification and unraveling complex vesting conditions. Also refer to our Stock-based compensation guide for more helpful information.

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.

Ken Stoler is a partner in PwC’s National Office with over 25 years of experience. Ken specializes in financial reporting and plan design issues related to equity compensation arrangements, retirement and healthcare plans, and other benefits, helping companies navigate their employee compensation issues during an IPO, spin off, acquisition, or other major transaction or event. 

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.