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The 2021 AICPA & CIMA Conference on Current SEC and PCAOB Developments included panels and speeches from a variety of market participants, many that addressed recent and expected change on many fronts of the financial reporting landscape. Heather Horn was joined by Angela Fergason and Kyle Moffatt, National Office partners, to discuss key takeaways from this year’s conference.

Topics :

• 1:21 - Background on the conference and themes. Angela discusses the background on the conference and provides an overview of  this year’s themes.
• 4:10 - What accounting topics were addressed? Angela, Kyle, and Heather talk through some of the accounting topics discussed at the conference with a highlight on SPACs, digital assets, revenue recognition, tax reform, and recently issued SAB 120 on “spring loaded” stock based compensation awards.
• 15:30 - What is the SEC focusing on? Kyle provides the latest update on the anticipated climate disclosure proposal and walks listeners through some of the SEC staff’s top areas of comment in financial statement reviews. These include materiality, non-GAAP, and segments, among others.
• 27:54 - What’s on the FASB’s agenda? Angela discusses constituent feedback on the FASB’s future agenda and highlights a few FASB project updates.
• 36:18 - What themes emerged in the SEC enforcement session? Kyle gives an update on key messages coming from the SEC's Division of Enforcement. Heather tries to stump Angela and Kyle with some niche accounting questions.

Want to learn more?

• Listen to our What’s trending in SEC comments podcast series here.
• Listen to our SPAC series here: Facts on SPACs: New trends in 2021
• Read our in the loop: Don’t wait until the SEC staff asks you about climate change

Angela Fergason is a partner in PwC's National Office specializing in the accounting for revenue and employee compensation arrangements. She also consults on a range of financial reporting issues impacting technology companies. Angela is a frequent speaker on accounting and financial reporting topics and is a contributor to many PwC National Office publications, including our accounting guides on revenue and stock-based compensation.

Kyle 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 April 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. 

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In our Talking ESG podcast series, we give an end-to-end look at what it takes to build effective ESG reporting in today’s environment. From investor to stakeholder expectations, from global frameworks to data, process, and controls—there’s something in it for everyone.

This week Heather Horn sat down with Brigham McNaughton, a managing director in PwC’s ESG practice, to discuss ESG reporting with a focus on the standards of the Sustainability Accounting Standards Board (SASB).

Topics include:

• 2:34 - Scope. SASB standards address disclosures for 77 industries and include over 1,000 metrics. Brigham and Heather discuss the scope of these disclosures and how the SASB has evolved over the years.
• 11:48 - How’d we get here? Nearly 1,200 companies worldwide apply SASB standards. Brigham walks listeners through the SASB’s history and some considerations around adoption.
• 18:56 - Planning to adopt. Despite the plethora of metrics and industry standards, adoption shouldn’t be daunting. Brigham and Heather discuss the steps that companies should take if they plan on adopting SASB standards.
• 24:23 - What about materiality? Assessing materiality for ESG-related topics differs from financial reporting. Brigham gives listeners helpful background information on how to think about materiality for non-financial disclosures.
• 31:19 - Advice for listeners. Brigham and Heather discuss some practical advice for those adopting or planning to adopt elements of the SASB framework. Brigham provides his perspective on what the future holds for climate-related disclosures.

Want to learn more?

• Listen to our previous podcasts in this series, Talking ESG: Leveraging TCFD for climate-related disclosures, Talking ESG: How SEC proposals may shape future reporting, Talking ESG: A focus on the Global Reporting Initiative, and Talking ESG: How new EU rules may impact your reporting.

Brigham McNaughton is a managing director 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 worked closely with the Sustainability Accounting Standards Board (SASB) on a variety of reporting initiatives.

Heather Horn is a Deputy Chief Accountant in PwC’s National Office and leader of the thought leadership group, 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 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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In the fourth quarter of 2021, President Biden signed the Infrastructure Investment and Jobs Act, which signals a long-term federal commitment to secure and modernize existing infrastructures, and support a transition to a clean economy. While that legislation is now law, at press time, the fate of the Build Back Better reconciliation bill is still unknown. We summarize the current state, including proposed tax law changes that could impact 2021 financial statements.  

At the SEC, fourth quarter activity included announcing new PCAOB appointments and adopting rules requiring the use of universal proxy cards in contested board elections. The SEC staff also continues its focus on ESG, providing example comments registrants may receive related to their disclosures—or lack thereof—about climate change. We provide the details and other ESG updates, including key takeaways from our recent ESG investor survey.

To help you prepare your year-end financial statements, we’ve compiled a list of top five year-end reporting reminders. We also provide perspectives on the impacts of the current economic environment on your year-end reporting. 

In standard-setting news, the FASB issued four new accounting standards, including changes to business combination accounting that companies may want to adopt this year. And, the feedback is in on the FASB’s future agenda. We reveal the topics that rose to the top of stakeholder’s lists.  

In this edition of The quarter close, we highlight these and other relevant accounting and reporting topics you should consider as 2021 comes to a close.

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

In our Talking ESG podcast series, we give an end-to-end look at what it takes to build effective ESG reporting in today’s environment. From investor to stakeholder expectations, from global frameworks to data, process, and controls—there’s something in it for everyone.

This week Heather Horn sat down with Steve Bochanski, PwC’s Climate Risk Modeling leader, to discuss ESG reporting with a focus on the Task Force on Climate-related Financial Disclosures (TCFD) and how it may affect your company.

Topics include:

• 6:09 - What is the TCFD? The Task Force on Climate-related Financial Disclosures was established to focus on providing stakeholders with information about climate-related risks. Heather and Steve talk through the background of the TCFD and how it’s different from other ESG reporting frameworks.
• 10:48 - Making a risk assessment. Most listeners will be familiar with the physical risks associated with climate change, and many companies already have processes in place to address them. But there’s also transition risk, which is less well-understood. Steve and Heather discuss how to get started assessing both of these risk categories and how correctly identifying risks upfront can improve your reporting.
• 19:54 - Who is adopting the TCFD recommendations? The Task Force has structured its guidance for broad adoption across industries. Steve walks listeners through the steps involved in adoption and who should be involved from the organization.
• 28:29 - Stakeholders and data quality. Most organizations have done more work than they think in their focus on conventional risk assessment processes that can be useful in a TCFD disclosure. Steve explains how companies can use these processes to accelerate their climate reporting process. Steve and Heather also talk through the importance of data quality.
• 36:57 - Advice for listeners. Steve and Heather discuss some practical advice for companies that have adopted or are planning to adopt aspects of the TCFD framework. Steve provides his perspective on what the future holds for climate-related disclosures.

Want to learn more?

• Listen to our previous podcasts in this series, Talking ESG: How SEC proposals may shape future reporting, Talking ESG: A focus on the Global Reporting Initiative, and Talking ESG: How new EU rules may impact your reporting.

Steve Bochanski leads PwC's US Climate Risk Modeling team, comprising actuaries, financial engineers, and climate scientists, and other actuarial activities in the ESG space. He also leads PwC’s Actuary of the Future initiative globally, focusing on actuarial modernization, upskilling, and corporate risk modeling beyond the insurance sector.  

Heather Horn is a Deputy Chief Accountant in PwC’s National Office and leader of the thought leadership group, 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.

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

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In each episode of our What’s trending in SEC comments series, our guests bring you the latest themes in comment letters from the SEC’s Division of Corporation Finance for the most common topical areas of the financial statements.

This week we focus on debt, warrants, and equity. Tom Barbieri, a Deputy Chief Accountant in PwC’s National Office, and John Horan, Managing Director in PwC’s National Office, joined Heather Horn to break down some of the questions raised in these comments, giving you a deeper understanding of the SEC staff’s expectations, as well as context and insights into the GAAP requirements.

Topics include:

• 1:46 - What types of comments are companies getting? Tom and John discuss the main themes of comments. Common questions relate to SPAC warrants and earnouts, debt modifications, preferred stock, embedded derivatives, and EPS.
• 4:51 - SPAC warrants and earnouts. Accounting for SPAC warrants and earnouts can be complicated. John and Heather discuss the types of questions the SEC is asking on this topic and some best practices for determining the appropriate accounting.
• 17:34 - Debt modifications and extinguishments. Accounting for a troubled debt restructuring, debt modifications, or extinguishment can be complex. Tom and Heather discuss some tips for getting disclosures about these transactions right the first time.
• 23:51 - Preferred stock. John and Heather talk about the SEC staff’s interest in particular topical areas when asking about preferred stock. 
• 31:05 - Embedded derivatives. Tom and Heather discuss accounting for embedded conversion features and other redemption provisions, and the importance of providing the right level of context for these in your disclosures.
• 33:51 - Earnings per share. EPS has continued to be an ongoing area of focus for the SEC staff. John explains some of the areas that might give rise to a comment.
• 40:03 - Key takeaways and reminders. We close with some future areas to pay attention to and helpful advice for issuers to address these issues heading into year end. Heather tries to stump Tom and John with some niche accounting questions.

Want to learn more?
Listen to our previous comment letter podcasts: Revenue: What’s trending in SEC comments, Goodwill: What’s trending in SEC comments, and Inventory and cost of sales: What’s trending in SEC comments, Segment reporting: What’s trending in SEC comments
Financial statement presentation guide: Chapter 5: Stockholders’ Equity, Chapter 12: Debt, Chapter 19: Derivatives and Hedging

Transcripts available upon request for indi

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.

In our Talking ESG podcast series, we give an end-to-end look at what it takes to build effective ESG reporting in today’s environment. From investor to stakeholder expectations, from  global frameworks to data, process, and controls—there’s something in it for everyone.

This week Heather Horn sat down with Kyle Moffatt, PwC National Office partner, and Sheri Wyatt, a partner in PwC’s ESG practice and Diversity leader for Trust Solutions, to help listeners gain a better understanding of the current landscape at the SEC related to ESG reporting and how it may affect your company.

Topics include:

• 1:30 - The latest from the SEC. We begin the conversation with an update on the SEC’s new administration and proposals for new disclosures. Kyle takes listeners through what this means for issuers.
• 6:56 - Human capital disclosures. Companies made their principles-based human capital disclosures for the first time last year. Kyle and Sheri discuss the result of those disclosures and where they see investor focus.
• 15:30 - Climate change disclosures. Kyle and Heather discuss the SEC’s continued focus on climate change-related risk disclosures. Even absent new rules on climate disclosures, there is a lot for companies to monitor in order to comply with existing guidance.
• 20:43 - Highlights from comment letters. The SEC has released a number of comment letters around companies' human capital and climate disclosures. Kyle and Sheri help unpack these letters and give listeners a preview of how registrants are responding. 
• 38:45 - Advice for listeners. There’s some judgment to determining what’s sufficient disclosure. Kyle and Sheri give their points of view on what companies should be considering in relation to their human capital and climate change disclosures.
• 41:33 - What’s coming next? Sheri and Kyle take listeners through the expected timeline for upcoming SEC rules and proposals related to ESG disclosures.

Kyle 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.

Sheri Wyatt is a partner in PwC’s sustainability practice and also serves as the diversity leader for the US Assurance line of service. 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 a Deputy Chief Accountant in PwC’s National Office and leader of the thought leadership group, 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 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].

In each episode of our What’s trending in SEC comments series, our guests bring you the latest themes in comment letters from the SEC’s Division of Corporation Finance for the most common topical areas of the financial statements.

This week we focus on segment reporting. Matt Sabatini and Reto Micheluzzi, PwC National Office partners, joined Heather Horn to break down some of the questions raised in these comments, giving you a deeper understanding of the SEC staff’s expectations, as well as context and insights into the GAAP requirements.

Topics include:

• 1:49 - A refresher on segment disclosures. Matt and Reto set the stage with an overview of the disclosure rules. Reto updates listeners on the current FASB project that may change the current segment disclosure requirements.
• 10:09 - What types of comments are companies getting? Matt and Reto discuss the main themes of recent comments. Common questions relate to how the company determined the Chief Operating Decision Maker, identified operating segments, and aggregated its operating segments to reportable segments, and the completeness of its entity-wide segment disclosures.
• 15:19 - Identifying reportable segments. Matt gives an overview of comments that issuers have received about identifying reportable segments. Issuers typically receive more questions when identifying only one reportable segment. 
• 17:12 - Entity wide disclosures. There are a number of entity-wide disclosures that must be made even when the entity identifies only one reportable segment. Matt and Heather discuss some tips for getting these right.
• 20:19 - Aggregation of operating segments. Aggregating operating segments into a reportable segment is an area that requires significant judgment. Matt and Reto give some of the steps you can take to avoid common pitfalls.
• 31:32 - Key takeaways and reminders. We close with helpful advice to address segment issues heading into year end. Heather tries to stump Matt and Reto with some niche accounting questions.

Want to learn more?

• Financial statement presentation guide: Chapter 25 segment reporting, including the flowchart for determining reportable segments in Chapter 25.3
• See our overview of SEC Comment Letter Trends

Matt Sabatini is a partner in PwC's National Office.

Reto Micheluzzi is a partner in PwC’s National Office with over 25 years of experience solving his clients’ most complex accounting and financial reporting issues, creating a path through the dense regulatory framework and bodies of rules. He has a deep understanding of the demands associated with today’s accounting complexities and potential SEC reporting issues, primarily related to M&A, consolidation, reorganizations, and income taxes.

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 Talking ESG podcast series, we give an end-to-end look at what it takes to build effective ESG reporting in today’s environment. From investor to stakeholder expectations, from  global frameworks to data, process, and controls—there’s something in it for everyone.

This week Heather Horn sat down with Eelco van der Enden, PwC’s Global ESG Tax & Legal Services platform leader and newly-appointed CEO of the Global Reporting Initiative, to help listeners gain a deeper understanding of the standards produced by GRI.

Topics include:

• 6:52 - What is GRI? We begin the conversation with a discussion on GRI’s past and present. Eelco takes listeners through the history of GRI and explains why he believes these standards have a strong linkage to enterprise value creation.
• 21:32 - Spurring companies to take action. As more investors call for standardization, Eelco and Heather discuss how the visibility and transparency that come from ESG reporting can spur companies to make changes.
• 32:27 - Setting up controls and processes. More and more companies are starting to move towards increased ESG reporting, whether purely voluntary or in anticipation of upcoming rules. Eelco explains how companies can effectively manage the necessary process and control changes.
• 41:55 - The current lay of the land. Eelco gives listeners his perspective on the current landscape of ESG reporting and how GRI fits in with the other broad frameworks such as SASB.
• 47:32 - Advice for listeners. Eelco gives his point of view on what companies should be thinking about as they start building out their ESG reporting.

Want to learn more?

• Listen to some of our previous podcasts in this series, Talking ESG: How new EU rules may impact your reporting, and Talking ESG: Demystifying the reporting landscape

Eelco van der Enden leads PwC’s global ESG platform for Tax & Legal and People Services and PwC's Tax Administration Consulting practice. He supports public and private sector organisations adjusting their tax operations to an ESG focused economy. Eelco is a member of the global board of directors of GRI and  was a co-writer of the GRI 207: Tax standard. Eelco is also Chairman of the Tax Policy Group of Accountancy Europe, member of the EU GTG Committee and has published more than 50 articles on tax governance and reporting. Effective January 1, 2022, Eelco will join GRI as CEO.

Heather Horn is a Deputy Chief Accountant in PwC’s National Office and leader of the thought leadership group, 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 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 each episode of our What’s trending in SEC comments series, our guests bring you the latest themes in comment letters from the SEC’s Division of Corporation Finance for the most common topical areas of the financial statements.

This week we focus on inventory, cost of sales, and income statement presentation. Pat Durbin, PwC National Office Partner, joined Heather Horn to break down some of the questions raised in these comments, giving you a deeper understanding of the SEC staff’s expectations, as well as context and insights into the GAAP requirements.

Topics include:

• 3:34 - What types of comments are companies getting? Pat and Heather discuss the main themes of comments. Common questions relate to the presentation of cost of sales and other income statement line items.
• 5:21 - Completeness of cost of sales. Pat gives an overview of comments that issuers have received about the completeness of their cost of sales and how to avoid some common pitfalls.
• 11:25 - What about the classification of operating expenses? There is very little explicit guidance on how to classify operating expenses and what to disclose. Pat and Heather discuss some of the diversity in practice and tips for providing the right level of context in your disclosures.
• 18:27 - Navigating the application of SAB topic 11-B. Pat and Heather discuss how to appropriately address this SEC staff guidance.
• 22:14 - What about comments on inventory? Inventory can be a material line item for many companies that sell products. Pat and Heather discuss some of the inventory comment letter trends and some of the disclosures that might require more judgment.
• 24:09 - Key takeaways and reminders. Pat closes with helpful advice when making decisions about income statement presentation, and how to convey key judgments to the reader. Heather tries to stump Pat with some niche accounting questions.

Want to learn more?

• Listen to our previous comment letter podcasts Revenue: What’s trending in SEC comments and Goodwill: What’s trending in SEC comments
• PwC’s Inventory Guide
• See our overview of SEC Comment Letter Trends

Pat Durbin is a partner in PwC’s National Office. Pat is a partner in PwC’s Assurance National Office and has over 30 years of experience. He has expertise in financial reporting and extensive experience serving board, C-suite, and senior management level executives across a variety of industries and geographies both in the US and internationally. 

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 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 requ

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.

In our Talking ESG podcast series, we give an end-to-end look at what it takes to build effective ESG reporting in today’s environment. From investor to stakeholder expectations, from  global frameworks to data, process, and controls—there’s something in it for everyone.

This week Heather Horn sat down with Valerie Wieman and Andreas Ohl, PwC National Office partners, to help listeners sort through the volume of organizations focused on ESG reporting and provide an overview of the current landscape and the changes to come.

Topics include:

• 2:31 - Who are the current global players? We open the conversation with a discussion on the big picture of the current landscape. Who are the current players? How do all of the different frameworks fit together? Andreas and Val help answer these questions.
• 17:40 -  How does this affect US companies? Val and Andreas explain how global reporting frameworks and developments should be considered by US companies. They also give an update on the SEC’s recent prioritization of ESG reporting and what happens next in terms of potential new SEC reporting requirements.
• 26:45 - Moving to mandatory. As reporting requirements increasingly move from voluntary to mandatory, Andreas and Val discuss how listeners should prepare for the future state of reporting frameworks.
• 34:46 - Advice for listeners. Even if your company is not facing mandatory requirements, investors are increasingly coming to expect some sort of ESG reporting. Andreas and Val give their perspective on where companies can start and stay ahead of the curve.

Want to learn more?

• Listen to our previous podcasts in this series, Talking ESG: Taking reporting from theory to action, Talking ESG: How investor views may impact your reporting, and Talking ESG: How new EU rules may impact your reporting
• Read our PwC ESG Investor Survey

Valerie Wieman is PwC’s National Office Editor-in-chief. She is involved in the creation, development, and publication of our brand-defining thought leadership, with a recent focus on ESG reporting. Prior to this role, she was part of PwC’s National Office SEC Services group, helping clients navigate SEC rules and regulations.  

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. 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 a Deputy Chief Accountant in PwC’s National Office and leader of the thought leadership group, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters.

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