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 the presentation and disclosure requirements for comprehensive income and stockholders’ equity. Tom Barbieri and Jay Seliber from our National Office are joining us again to share helpful insights and key reminders with our host, Heather Horn. 

Topics include:

• 0:39 - Comprehensive income. Tom and Jay break down the presentation basics of comprehensive income and dive into the elements of other comprehensive income. 
• 14:57 - Stockholders’ equity. We run through the requirements of presenting and disclosing the changes in stockholders’ equity. 
• 20:02 - Preferred stock. Jay and Tom explain the nuances related to the balance sheet presentation of preferred stock. 
• 21:55 - Other common areas. Lightning round! Heather quizzes our guests on presentation and disclosure rules for mezzanine equity, treasury stock, dividends, and contracts indexed to a company’s own stock. 
• 34:22 - Standard setting. Jay highlights some new disclosure requirements from the recent standard setting on convertible debt and warrant modifications.
• 38:10 - Wrap up. Tom and Jay share their final advice for our listeners and key takeaways. 

Want to learn more? Read:

• Chapter 4: Reporting comprehensive income, Chapter 5: Stockholders’ equity, Chapter 21: Foreign currency, and Section 15.3.3: Temporary (mezzanine) equity of our Financial statement presentation guide
• Chapter 7: Preferred stock and Chapter 8: Accounting for certain contracts to issue shares of our Financing transactions guide
• In depth: Accounting for convertible instruments and own equity contracts

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

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In our Forecast 2021 podcast series, we’re focused on offering insights to help you better understand and manage some of the opportunities and challenges that your company might face—think policy, technology, and other big picture topics. 

In this week’s episode, we focus on central bank digital currencies, and what CFOs should know. From PwC’s Intelligence group, Craig Stronberg, Nataly Yackanich, and Zain Siddiqui join host Heather Horn to provide their insights on this hot topic.

Topics include:

• 1:23 - Background. We start with a discussion of the basic terminology—central bank digital currencies (CBDC), cryptocurrencies, and stable coins—and then touch upon how cryptocurrencies work on a blockchain and different types of “wallets.”
• 8:54 - Greater use of CBDCs. Nataly explains how central banks are researching the use of CBDCs to modernize the current payment systems and enhance financial inclusion. 
• 14:17 - Control of central banks. Some CBDCs create central bank liability, essentially creating a digitized version of a currency. Zain explains.
• 19:17 - China on digital currencies. Craig and Zain explain China’s role in creating a central bank digital currency and why CFOs should watch this closely for strategic purposes.
• 26:19 - CFO focus. Nataly explains how the treasury function is undergoing a transformation to be increasingly digital and efficient, and how digital assets have the ability to transform business-to-business (B2B) payments infrastructure. This is an exciting change for CFOs.
• 32:05 - Key takeaways. Our guests summarize key points from a geopolitical perspective and where they see this conversation on digital currencies headed in the near term.

Want to learn more? Craig references this testimony as a great way to get up to speed.

For additional information, listen to our Podcast: Cryptocurrency? Digital Asset? What’s the accounting? and read our Regulatory brief - The evolution of money: Why financial institutions should start paying attention to CBDCs.

Craig Stronberg leads the Macro Capability for PwC Intelligence, spearheading the team of analysts that provide macroeconomic and geopolitical intelligence to key stakeholders. Named as one of the "100 Most Creative People in Business” by Fast Company, Craig had a nearly 20-year career in national security affairs working for and advising numerous agencies and international partners, having been decorated five times.

Nataly Yackanich is the lead financial services analyst for PwC Intelligence. She advises stakeholders on the business implications of emerging issues in the financial services industry. She is a CFA charterholder with buy and sell side equity experience covering multiple industries, including financial services, industrials, and technology.

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.

Transcripts available upon request for individuals who

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 earnings per share. John Horan and Jay Seliber from our National Office are joining us again to share helpful insights and key reminders with our host, Heather Horn. 

Topics include:

• 1:18 - The basics. Jay and John set the stage for today’s discussion with a refresher on the type of entities that are required to calculate EPS and the presentation and disclosure requirements for basic and diluted EPS. 
• 8:41 - Basic EPS. We break down how to calculate basic EPS, potential adjustments to the numerator and denominator, and how to calculate weighted average shares outstanding. 
• 19:04 - Diluted EPS and convertible instruments. Jay and John discuss how to calculate diluted EPS and the various methods used. 
• 28:30 - Potential common shares. Our guests explain what potential common stock share instruments are anti-dilutive and how to consider them in the EPS calculation. 
• 32:09 - Quarterly versus annual EPS. Jay gives us a refresher on how EPS is presented on a quarterly and annual (or year-to-date) basis. 
• 36:21 - Wrap up. Our guests give us their final remarks and key takeaways. 

Want to learn more? Read:

• Chapter 7: Earnings per share of our Financial statement presentation guide
• Section 6.6 of our Carve-out financial statements guide
• Sections 2.6.5.3, 2.10.5 and 6.4.2.2 of our Business combinations and noncontrolling interests guide
• Our In depth: Domestic SPAC mergers - financial reporting and accounting considerations

And listen to our podcasts, Got EPS questions? We've got answers and Earnings per share: 5 things you need to know.

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.

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In our Forecast 2021 podcast series, we’re focused on offering insights to help you better understand and manage some of the opportunities and challenges that your company might face—think policy, technology, and other big picture topics. 

In this week’s episode, we build upon our summer 2020 conversation on the future of work and how CFOs can optimize a hybrid workforce model. Bhushan Sethi, PwC’s Joint Global People & Organization Leader, is back in the guest seat to provide insights on embracing a hybrid work environment.

Topics include:

• 1:05 - Phased return to work. Bhushan provides insight into the current landscape of the work environment, and tells us how organizations are thinking about culture, employee preferences, safety, location, and flexibility.
• 10:41 - The hybrid finance function. We discuss how leaders are focusing on their employees’ well being and encouraging members of their finance function to learn new skills using technology and immersive tools. 
• 18:01 - Maintaining and improving your culture. We discuss how companies are doing this well - by investing in workflow, technology, and online design thinking tools. 
• 24:53 - CFOs taking action for the future. Bhushan encourages CFOs to think about how short-term investments in technology and real estate can impact long-term business goals. He suggests engaging cross-functional talent to support the hybrid work environment and focus on purpose, leadership, and planning.
• 30:16 - Common pitfalls. Bhushan suggests that the pandemic has highlighted divisiveness in our society and encourages leaders to try to minimize that within their organizations, while engaging with their talent to foster their creativity. 
• 32:32 - Equity and inclusion. We discuss how to have a strategy that is inclusive to all. We also hypothesize what hybrid work will look like in the future. 

Want to learn more? Listen to our Podcast: What’s next? The future of work and how to get there and subscribe to PwC’s Workforce Inside podcast series 

Bhushan Sethi is a joint global leader of PwC’s People & Organization group, where he shapes and drives the firm’s global network strategy, delivering standalone and integrated solutions across strategy, management, technology, and tax consulting disciplines. Bhushan is a thought leader, public speaker, media spokesperson, and influencer on "future of work,” risk culture, workforce strategy, employee experience, and diversity & inclusion.

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].

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 statement of cash flows and the common classification matters. Suzanne Stephani from our National Office is back in the guest seat to share helpful insights and key reminders with our host, Heather Horn.

Topics include:

• 1:14 - The basics. Suzanne sets the stage for today’s discussion with a refresher on the types of cash, cash equivalents and restricted cash to include in the statement of cash flows, and the related disclosures.
• 7:02 - General classification model. Suzanne reminds us of what the direct and indirect methods are and breaks down the three cash flow buckets on this statement: operating, investing, and financing activities. She also highlights what investors are focused on.  
• 12:15 - Gross versus net. We discuss the requirements to present investing or financing inflows and outflows as gross, and what the specific criteria is for when a net presentation is permissible. 
• 15:10 - Noncash investing and financing. Suzanne highlights the required disclosures for noncash activities and provides helpful examples. 
• 19:11 - Common classification issues. We go through a lightning round of questions on common classification issues such as insurance claim proceeds, noncontrolling interest cash flows, repayment of debt that was issued at a discount, payment-in-kind notes, debt extinguishment costs, and structured payables.
• 29:20 - Close out. Suzanne gives us her final remarks and reminds us of the upcoming PwC Q2 Quarterly accounting webcast on emerging issues. 

Want to learn more? Read Chapter 6: Statement of cash flows of our Financial statement presentation guide.

And listen to our podcasts:

• Building your cash flow statement in uncertain times
• Statement of cash flows: back to basics

Suzanne Stephani is a director in PwC’s National Office specializing in the application and interpretation of the accounting guidance related to financing transactions.

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].

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In the second quarter of 2021, environmental, social, and governance--in particular, climate change--continues to be at the forefront. With Earth Day as the backdrop, President Biden announced new targets for reducing US greenhouse gas pollution. In May, President Biden issued an executive order calling for a wide range of actions to combat risks to the economy and financial system stemming from climate change. As Gary Gensler steps in to lead the SEC, ESG is expected to be one the agency’s priorities. We take a closer look at the SEC under Gensler’s leadership, including recent steps on the path toward new climate-change disclosures.

It’s not just the Biden administration focused on climate change. More and more companies are making net zero or carbon reduction commitments, bringing increased focus to the related accounting and reporting implications. Our National Office specialists weigh in on “green” accounting and what companies should be thinking about.

Leases also continue to be a hot topic as companies plan for a return to the office and consider making changes to their real estate strategies. This quarter we discuss frequently asked questions related to the accounting for subleases and leasehold improvements.

On the standard-setting front, the FASB is poised to issue an invitation to comment on its future agenda. Will ESG make the short list? We take a sneak peek at some of the topics likely to be part of the discussion, along with a recap of other standard-setting developments.

This edition of The quarter close highlights these and other relevant accounting and reporting topics you should consider as you close out the second quarter of the year.

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

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In our Forecast 2021 podcast series, we’re focused on offering insights to help you better understand and manage some of the opportunities and challenges that your company might face—think policy, technology, and other big picture topics. 

In this week’s episode, we are talking about the benefits of investing in your employees’ experience. Host Heather Horn sits down with Angela Lester, an Experience Strategy and Design partner, and Claudia Montgomery, a managing director in Organization and Workforce Transformation, to discuss how and why it’s time for companies to focus on their employees’ experience concurrent with their overall business strategy. 

Topics include:

• 1:16 - Four Fs. Our guests explain the four Fs needed to create an  employee-engaging experience: form, flow, feeling, and function.
• 8:29 - The role of the CFO. Angela and Claudia walk us through why and how the war for talent can impact a company’s operations and financial metrics. 
• 11:58 - The happy employee. We discuss how to create a culture where employees feel valued, and how your discretionary efforts will translate to customer satisfaction and business success. 
• 18:56 - Measuring employee pulse. We tell you how to use qualitative measures to understand what the specific dynamics are around your employees’ experience. We discuss how to balance employee priorities with driving business forward.
• 26:52 - Designing a better experience. Angela explains how to begin designing an improved employee experience: analyze different personas, map them to business units, and prioritize friction points.
• 32:02 - Crystal ball. We fast forward several years to project what the future employee experience may look like.

Want to learn more? Read The four Fs of employee experience

Angela Lester is a partner in PwC’s Experience Strategy and Design group, focused on brand innovation, product and service design, inclusive design, personalization, e-commerce, and purpose-led impact. 

Claudia Montgomery is a managing director in PwC’s Organization and Workforce Transformation group, focused on helping clients optimize human capital practices and create forward-thinking workforce strategies. 

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].

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.

Our second episode in this series focuses on the income statement. Valerie Wieman and Ashleigh Pierce from our National office join host Heather Horn to share helpful insights and key reminders.

Topics include:

• 1:28 - General presentation reminders. Valerie sets the stage for today’s discussion with a breakdown of the general income statement presentation requirements.
• 6:31 - Revenue presentation. Valerie and Ashleigh take us through the SEC requirements for presenting revenue and how to distinguish between revenues and gains.
• 11:55 - Cost of sales and operating expenses reminders. Valerie and Ashleigh remind us of the judgment involved when allocating your expenses between cost of sales and operating expenses.
• 18:52 - Operating measures and subtotals. Ashleigh provides some key reminders for companies that choose to present an operating measure on their income statement.
• 21:20 - SEC comment letters. Valerie highlights relevant SEC comment letter trends, including cost classification, depreciation and amortization, and gross profit subtotals.
• 23:24 - Other specific presentation requirements. Our guests walk through presentation and disclosure of research and development costs, collaborative arrangements, long-lived asset impairments and non-operating income and expenses.
• 30:27 - Government grants. Ashleigh shares presentation and disclosure reminders related to the receipt of government grants.
• 35:54 - Standard setting update. Ashleigh and Valerie wrap up by highlighting projects on the FASB’s technical agenda that impact the income statement and related disclosures.

Want to learn more? Read Chapter 3: Income statement of our Financial statement presentation guide.

And listen to our Podcast: Disaggregated expense disclosures – The FASB’s new DISE standard

Valerie Wieman is PwC’s National office Editor-in-chief. She manages the creation, development, and publication of our brand-defining thought leadership. Prior to that role, she was part of PwC’s National office SEC services group, helping clients navigate SEC rules and regulations.

Ashleigh Pierce is a director in PwC’s National office specializing in technical accounting matters, strategic thought leadership, and podcast content. She has experience serving multinational clients, both public and private, primarily in the consumer markets, healthcare, not-for-profit, higher education, and industrial products 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, 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.

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

In our Forecast 2021 podcast series, we’re focused on offering insights to help you better understand and manage some of the opportunities and challenges that your company might face—think policy, technology, and other big picture topics. 

In this week’s episode, we are talking about the deals landscape with a focus on the operational challenges of going public. Host Heather Horn sits down with Ed Jasaitis, a specialist in operational readiness, to discuss considerations for finance teams—from the offering stage (going public) to operating in a public company environment (being public).

Topics include:

• 1:36 - Current transaction landscape. Ed sets the stage by discussing the differences between the various transactions happening in the deals market aside from the traditional IPO, including SPACs, spins, and direct listings. 
• 10:30 - Readiness. According to Ed, a company has to balance both the pre- and post-IPO (or acquisition close) stages. The finance team needs to be ready to close the transaction and operate as a public company on day one post-close. 
• 13:50 - Resource skill and bandwidth gaps. Ed discusses the most  important success factor—identifying resource requirements, including where gaps exist in skill sets and bandwidth. He encourages management to take stock of the finance function, internal audit function, control environment, and investor relations. Ed also suggests companies consider outsourcing resource needs when timing is very compressed. 
• 19:10 - Project management best practices. Having a key finance leader dedicated to the overall vision of going public and being public is another key success factor. It allows the company to be ready for the immediate reporting requirements and plan for a path to compliance with the Sarbanes-Oxley Act.
• 23:38 - Technology for finance. Ed takes us through the digitization trend he has seen in practice and what it means to have a solid technology platform and integration process in place to gain efficiencies through automation. 
• 27:00 - Anticipating a transaction. Ed says it’s helpful to anticipate a transaction to ensure market and operational readiness. He encourages listeners to consider the needs of all stakeholders in the organization and ensure the finance function supports those needs.
• 27:30 - Crystal ball. Ed shares his view of what we’ll be talking about in the future.

Want to learn more? Listen to our podcast Forecast 2021: From ESG to SPACs, the new deals landscape, check out our Deals page, and read our In the loop: The SPAC spree: Current state.

Ed Jasaitis is a partner in PwC’s advisory practice focusing on deals. He guides clients through significant business changes, including mergers and acquisitions, carve outs, cost reductions, finance transformation, and operational improvements. 

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

In our Full disclosure podcast series, we’re bringing 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. 

Our inaugural episode this week focuses on general reporting and balance sheet presentation requirements. Kyle Moffatt, a partner in our National Office, is back in the guest seat to set the stage for the series with our host, Heather Horn. 

Topics include:

• 1:32 - General presentation reminders. GAAP comes first. Kyle reminds our listeners of the FASB codification guidance for interim and annual financial statement presentation for both public and private companies, as well as the incremental guidance from the SEC for public companies.
• 2:37 - Significant accounting policies. Kyle reminds companies how to determine which accounting policies are significant, and encourages listeners to take a fresh look at their disclosures.
• 9:13 - Significant account balances. Kyle outlines the SEC rules regarding when balances should be broken out and presented separately on the balance sheet. 
• 14:53 - Balance sheet classification. Reporting entities are required to present a classified balance sheet. Kyle explains the requirements and how they provide insights for the users of the financial statements.
• 17:55 - Balance sheet offsetting.  Kyle breaks down the key criteria that must be met to determine whether you can offset assets and liabilities on the balance sheet. 
• 22:00 - Other considerations. We discuss other important considerations for balance sheet presentation, what the SEC staff focuses on, and key takeaways. 

Want to learn more? Read the following chapters from our Financial statement presentation guide: 

• Chapter 1: General presentation and disclosure requirements
• Chapter 2: Balance sheet
• Chapter 29: Interim financial reporting

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.

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.