PwC's accounting podcast

Our Full disclosure podcast series brings you back to the basics on all things related to financial statement presentation and disclosure, from the top of the financial statements through the footnotes. 

This week we focus on loans and receivables, including how the credit losses standard, with its current expected credit loss (CECL) model, changed the presentation and disclosure requirements. Tom Barbieri and Bret Dooley, PwC National Office partners, sat down with our host, Heather Horn, to share insights and reminders in the post-adoption world.

Topics include:

• 2:05 - Balance sheet and income statement. Tom and Bret begin with an overview of what to present on two of the primary financial statements for loans and receivables.
• 10:08 - Disclosure requirements. Tom highlights key disclosures for companies with loans receivable assets. He addresses requirements from accounting policies through credit quality indicators. 
• 18:53 - Allowance for credit losses. Bret dives into the required disclosures for companies that develop an allowance reserve estimate and explains the information that financial statements users need to understand non-performing receivables. 
• 26:08 - Cash flows. Tom gives a few key reminders for getting the right geography when presenting loans in your statement of cash flows.
• 28:05 - SEC filings and comment trends. Tom and Bret discuss interim presentation and disclosure requirements and comment trends from the SEC after the first year of CECL.
• 32:31 - Wrap up. Heather tries to stump Tom and Bret with a few questions from pre-CECL periods before Tom and Bret provide some advice and resources when preparing credit disclosures. 

Want to hear more about CECL? Check out some of our past podcasts and videos:

• The CECL standard - 5 things you need to know
• COVID-19: CECL consideration questions, answered
• CECL disclosures: Year-end reminders
• CECL - Impacts for nonfinancial services companies

Tom Barbieri is a Deputy Chief Accountant in PwC’s National Office and the financial instruments accounting leader. He has nearly 30 years of experience advising clients on complex accounting and financial reporting issues relating to financial instruments. During Tom’s tenure in the National Office, he has been at the forefront of emerging accounting issues and has regular interactions with the FASB, SEC, and other regulators and standard setters.

Bret Dooley is a Partner in PwC’s National Office with over 25 years of experience specializing in the financial services, banking and capital markets industries. He focuses on emerging financial reporting issues relating to financial instruments.

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

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Special-purpose acquisition companies (SPACs) have been around for some time, but in the last 24 months there have been an unprecedented number of companies going public via a SPAC transaction. In our Facts on SPACs mini-series, we cut through the noise to help you focus on some of the key issues relating to these transactions. 

In episode five of our six-part series on SPACs, Heather is joined by Jay Seliber, PwC National Office partner, and John Horan, PwC National Office managing director, to talk through key accounting and reporting differences between private and public company financial statements and to share related insights and reminders.

Topics include:

• 1:11 - Mezzanine equity. Found somewhere between liabilities and shareholders’ equity, John explains what mezzanine equity is and the SEC’s rules for presenting it. 
• 9:58 - Earnings per share. A complicated area, made even more so by the complex capital structures commonly seen in the operating companies involved in a SPAC—Jay and John highlight some key areas of focus when computing earnings per share for the first time. 
• 18:43 - GAAP alternatives for private companies. Sometimes referred to as Private Company Council accounting alternatives, John breaks down three accounting alternatives that can be elected by private companies but would need to be unwound before your first SEC filing. 
• 23:12 - New accounting standards and additional disclosures for public companies. For public companies, there are a number of incremental required disclosures across many topics as compared to private companies. Additionally, most ASU adoption dates come quicker when compared to private companies—Jay and John explain.
• 30:45 - Wrap-up. Going from a private to public company can be a lot of work. Jay and John close with which areas they think may need the most attention. 

Want to learn more? Explore our Financial statement presentation guide for specific topics and listen to some of our past podcasts mentioned by Jay and John: 

• Facts on SPACs: A focus on warrants, earnouts, and EPS
• Full disclosure: Earnings per share (EPS)
• Stock-based compensation issues in an IPO and SPAC, explained.

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 to the FASB's Emerging Issues Task Force.

John Horan is a managing director in PwC’s National Office with almost 15 years of experience assisting clients with complex accounting issues. With particular expertise in foreign currencies, liabilities and equity, earnings per share, and derivatives and hedging, John uses his expertise to help companies with large capital transactions and IPOs. 

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Our Full disclosure podcast series brings you back to the basics on all things related to financial statement presentation and disclosure, from the top of the financial statements through the footnotes. 

This week we focus on the presentation and disclosure requirements for revenue. Angela Fergason is joining us again to break down revenue from contracts with customers and what needs to be included in your financial statements. 

Topics include:

• 1:15 - Income statement and balance sheet. Angela opens with a quick overview of how to present revenue on the income statement and balance sheet, and a few reminders of key requirements. 
• 11:29 - Disaggregated revenue. Angela gives an overview of the five major disclosure areas for revenue and dives into requirements around disaggregating revenue. 
• 16:23 - Performance obligations. Angela explains the quantitative and qualitative disclosure requirements for performance obligations, paying particular attention to those related to remaining performance obligations—which are often the most time consuming to prepare. 
• 21:27 - Remaining disclosures. Angela covers the final three primary areas of disclosures for public companies: significant judgments, contract balances, and cost to obtain or fulfill a contract
• 27:47 - Non-public companies. Angela highlights which disclosures apply to non-public companies, and which don’t. 
• 29:05 - Closing. Heather tries to stump Angela with a few revenue and ASC 606 trivia questions before Angela provides some final advice and reminders to companies evaluating their disclosures.

Want to hear more about revenue from Angela? Check out some of our past podcasts:

• Identifying performance obligations: PwC breaks it down
• Variable consideration: How it impacts your top and bottom line
• Revenue contract costs: capitalize or expense?
• Revenue contract modifications: 5 things you need to know

Also listen to Full disclosure: The balance sheet to learn more about balance sheet offsetting and see our Financial statement presentation guide for more details on presentation and disclosure for revenue. 

Angela Fergason is a partner in PwC's National Office with over 20 years of experience who specializes in accounting for revenue and employee compensation arrangements. She 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.

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.

Special-purpose acquisition companies (SPACs) have been around for some time, but in the last 24 months there have been an unprecedented number of companies going public via a SPAC transaction. In our Facts on SPACs mini-series, we cut through the noise to help you focus on some of the key issues relating to these transactions. 

In episode four of our six-part series on SPACs, Jay Seliber, PwC National Office partner, is back again. This time he’s explaining how to apply compensation guidance to certain arrangements common in a SPAC transaction.

Topics include:

• 1:08 - Identification. Jay explains how to identify instruments subject to the compensation guidance and the most common instruments used as compensation in SPAC transactions. 
• 15:23 - What to look out for. Jay highlights pitfalls he’s seen in past SPAC deals and how to plan ahead to avoid them. 
• 18:18 - EPS. Jay shares how earnouts and warrants impact EPS when they’ve been determined to be compensatory and not financial instruments. 
• 21:18 - Key takeaways. Jay shares where to find more information and gives some parting advice to companies on navigating SPAC transactions.

Want to learn more? Read our Stock-based compensation and Financial statement presentation guides. And listen to our podcast, Stock-based compensation issues in an IPO and SPAC, explained.

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 to 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, as well as periodic webcasts for the power and utilities industry. With nearly 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.

Our Full disclosure podcast series brings you back to the basics on all things related to financial statement presentation and disclosure, from the top of the financial statements through the footnotes. 

This week we focus on the fair value disclosure requirements for other liabilities—specifically payables, contingencies, and asset retirement obligations (AROs). Pat Durbin and John Brittain are in the guest seats to share helpful insights and key reminders

Topics include:

• 1:23 - Accounts and notes payable. Pat and John explain the presentation and disclosure requirements for payables and highlights key requirements in S-X Rule 5-02. 
• 9:02 - Contingencies. Pat dives into accounting considerations for environmental liabilities as well as general presentation and disclosure matters for other contingencies. 
• 20:19 - AROs. John breaks down the disclosure requirements for AROs and what to do when they cannot be reasonably estimated. 
• 24:45 - Wrap up. Heather tries to stump Pat and John with two challenging questions, and Pat and John provide some final advice to companies to consider while preparing their financial statements.

Want to learn more? Read our Financial statement presentation guide on other liabilities and contingencies. 

Pat Durbin is a Deputy Chief Accountant, leading the revenue and liabilities division in PwC’s National Office. He has nearly 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.

John Brittain is a partner in PwC's National Office with over 30 years of experience helping clients and engagement teams navigate the accounting and financial reporting considerations related to business combinations, as well as issues in the energy and utilities sector.

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 nearly 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.

Special-purpose acquisition companies (SPACs) have been around for some time, but in the last 24 months there have been an unprecedented number of companies going public via a SPAC transaction. In our Facts on SPACs mini-series, we cut through the noise to help you focus on some of the key issues relating to these transactions. 

In episode three of our six-part series on SPACs, Chip Currie, PwC National Office partner, discusses common financial instruments associated with SPAC transactions and their treatments.

Topics include:

• 0:44 - Background. Chip introduces two common arrangements associated with SPAC transactions and explains how equity-linked financial instruments issued prior to a merger with an operating company often survive the acquisition. 
• 12:52 - Accounting treatment. Chip dives into the accounting model for certain warrant and earn-out arrangements and a recent opinion on this topic from the SEC.
• 23:02 - Earnings per share. Once the instruments have been issued and the accounting treatment determined, the focus shifts to calculating earnings per share. Chip highlights the basics you need to know. 
• 32:22 - Key takeaways. Chip closes with some advice to consider before diving into a complicated accounting assessment. Little differences can have a big impact, so make sure to understand the facts and terms of your specific agreements. 

Want to learn more? Read our In depth, Domestic SPAC mergers - financial reporting and accounting considerations and our Financing and Financial statement presentation guides. Also see the SEC staff statement on Accounting and Reporting Considerations for Warrants Issued by SPACs.

Chip Currie is a Partner in PwC’s National Office with over 25 years of experience assisting companies in resolving complex business and accounting issues. He concentrates on the accounting for financial instruments under both current and emerging standards and works with many of the firm's largest financial services clients and a number of non-financial service clients on treasury-related matters.

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 nearly 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.

Our Full disclosure podcast series brings you back to the basics on all things related to financial statement presentation and disclosure, from the top of the financial statements through the footnotes. 

This week we focus on the fair value disclosure requirements. Chip Currie from our National Office is back in the guest seat to discuss key reminders with our host, Heather Horn. 

Topics include:

• 1:10 - The Basics. Chip and Heather begin by discussing some of the “core” fair value disclosure requirements and how the requirements evolved into their current state.
• 9:32 - Leveling. Chip explains the objectives of fair value leveling classifications, how they’re determined by their inputs, and their presentation in the footnotes. 
• 23:58 - Additional requirements. Chip dives into additional required disclosures for public business entities and companies electing the fair value option. 
• 32:12 - Wrap up. Heather tries to stump Chip with two challenging questions, and Chip provides pointers on where to find additional resources as companies hone their fair value disclosures.

Want to learn more? Read our Financial statement presentation and Fair value measurements guides. And listen to our podcast, Full disclosure: Investments—debt and equity securities.

Chip Currie is a Partner in PwC’s National Office with over 25 years of experience assisting companies in resolving complex business and accounting issues. He concentrates on the accounting for financial instruments under both current and emerging standards and works with many of the firm's largest financial services clients and a number of non-financial service clients on treasury-related matters.

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 nearly 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.

Special-purpose acquisition companies (SPACs) have been around for a long time, but in the last 24 months, the SPAC market has seen an unprecedented amount of activity. In our Facts on SPACs mini-series, we cut through the noise to tell you exactly what you need to know about this boom. 

In episode two of our six-part series on SPACs, Matt Sabatini, PwC National Office partner, is back to share some helpful insights when determining the accounting acquirer in a SPAC transaction. 

Topics include:

• 0:56 - Background. Matt and Heather begin with an introduction to one of the first steps to any SPAC transaction – identifying the accounting acquirer. Generally, it’s the same assessment as in a business combination, but most importantly, it’s not a “one size fits all” analysis - Matt explains.
• 6:31 - Exceptions to the rule. We said it was “generally” the same as any business combination. Matt describes two exceptions when different accounting guidance needs to be used to identify the accounting acquirer. 
• 12:39 - Downstream impacts. Once the accounting acquirer has been determined, the facts will tell you which accounting model to apply. Is it a reverse recapitalization? Matt tells you what you need to know.
• 18:01 - Key takeaways. Heather and Matt close with final advice on this assessment. Most importantly, understanding the facts. Not all SPACs are alike.

Want to learn more? Read our In depth, Determining the accounting acquirer.

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, as well as periodic webcasts for the power and utilities industry. With nearly 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.

Our Full disclosure podcast series brings you back to the basics on all things related to financial statement presentation and disclosure, from the top of the financial statements through the footnotes. 

This week we focus on the presentation and disclosure requirements for pension obligations and plan assets. Jay Seliber and Ken Stoler from our National Office are back in the guest seats to discuss key reminders with our host, Heather Horn. 

Topics include:

• 1:24 - Pension costs. Jay outlines the typical six accounting components of pension and other postemployment benefit (OPEB) costs for single-employer defined benefit plans.  
• 7:31 - Financial statement presentation. Ken explains the balance sheet and income statement and classification matters for pension and OPEB obligations. 
• 11:02 - Disclosures. Jay highlights key objectives to consider and specific required disclosures for pensions. 
• 24:47 - Key takeaways. Heather, Jay, and Ken close with some final advice to help make the preparation of these disclosures easier.

Want to learn more? Read our Financial statement presentation and Pensions and other employee benefits guides. And listen to our podcast, Accounting for pension plans: Back to the basics with 5 things to know. 

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 to the FASB's Emerging Issues Task Force.

Ken Stoler is a partner in PwC’s National Office with over 15 years of experience. He helps companies to address one of their most fundamental concerns, how they should compensate their employees and executives. Helping companies navigate their employee issues during an IPO, spin off, acquisition, or other major transaction or event, Ken specializes in financial reporting and plan design issues related to equity compensation arrangements, retirement and healthcare plans, and other benefits. 

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 nearly 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.

Special-purpose acquisition companies (SPACs) have been around for a long time, but in the last 24 months, the SPAC market has seen an unprecedented amount of activity. In our Facts on SPACs mini-series, we cut through the noise to tell you exactly what you need to know about this boom. 

This week we’re kicking off this series with a SPAC lifecycle overview. Mike Bellin, PwC’s IPO Services co-leader, is in the guest seat to give the what, why, and how of SPAC transactions, including a few of the latest trends emerging in 2021. 

Topics include:

• 0:53 - Defining a SPAC. Mike introduces what a SPAC transaction is, what it accomplishes, and what’s driving its popularity. 
• 11:27 - SPACs versus IPOs. Most companies are familiar with traditional IPOs. Mike describes the similarities and differences in the processes that make SPACs a popular choice, and the differences in risk. 
• 18:23 - The current landscape. Mike highlights what’s happening in the SPAC market currently, including “divestiture-to-SPAC” and “up-SPAC” transactions, along with key accounting and reporting considerations.
• 24:40 - Key takeaways. Heather and Mike close with some final remarks around where CFOs and controllers can focus their preparation when contemplating various liquidity scenarios. If going public is on the table, it’s important to put investment into the organization now - Mike explains.

Want to learn more? Listen to our podcast Forecast 2021: Operational readiness for IPOs, SPACs, and spins, and read our In depth: Domestic SPAC mergers - financial reporting and accounting considerations.

Mike Bellin is a PwC Deals partner and co-leads PwC’s IPO Services practice. Mike focuses on IPOs, SPACs, accounting for carve-outs/spin-offs, purchase accounting, pro forma financial statements, stock compensation, the SEC registration process, and much more. In addition, he frequently advises on IPOs, helping his clients with their initial registration process and operational readiness.

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 nearly 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.