PwC's accounting podcast

As we wrap up the first quarter of the new year, join host Heather Horn and PwC tax specialists, Jenn Spang and Kassie Bauman, as they discuss some of the key considerations and complexities in accounting for income taxes during interim periods.

Topics include:

• 0:51 - How it works. We begin with an overview of how to calculate a quarterly income tax provision, including how to estimate the annual effective tax rate (AETR). 
• 7:39 - Ordinary income. What does ordinary income mean in the context of your interim tax provision? Jenn explains.
• 10:21 - Discrete items. Kassie shares examples of what qualifies for treatment as a discrete item and the judgment involved. 
• 16:51 - Exceptions and limitations. Kassie and Jenn discuss a few exceptions to using the worldwide estimated AETR.
• 22:55 - Roll of the controller. Setting the AETR involves more than just the tax department—it is a cross-specialty process. We close by discussing the importance of engaging the right people from the beginning and working together to apply the right controls and processes.  

Jennifer Spang is a tax partner in PwC's National Office specializing in tax accounting under US GAAP and IFRS. She has over 25 years of experience helping companies in a variety of industries navigating complex tax accounting matters.

Kassie Bauman is a managing director in PwC's National Office who consults on tax accounting under US GAAP and IFRS. Kassie has more than 20 years of auditing and accounting experience, including almost a decade of experience addressing complex technical accounting matters as part of our National Office.

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.

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In our Forecast 2021 podcast series, we’re focused on preparing you for the year ahead by 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.

PwC recently released the findings from its 24th Annual Global CEO Survey, so this week host Heather Horn sat down with Bob Moritz, PwC’s Global Chairman, to look at a few of the emerging trends from the report. But she didn’t let him off that easy - listen to hear Bob’s candid thoughts on strategy and leadership.

Topics include:

• 1:03 - Findings from PwC’s 24th annual CEO Survey. The robust amount of data rendered from PwC’s CEO Survey came from companies of all sizes across the globe and they had a lot to say. Heather and Bob hit on a handful of the highlights:
  • 2:07 - CEO optimism
  • 5:53 - Innovation
  • 11:04 - ESG
  • 14:05 - The reinvented workplace
  • 19:13 - Trade dynamics  
• 24:25 - How to set—and execute—a strategy. By acknowledging the need for change, putting the right processes in place, accumulating quality data and proactively telling your story, Bob distills what he sees as the fundamentals to creating a winning strategy that engages all stakeholders.   
• 38:50 - Leadership lightning round. We close with a few fun, rapid fire questions to hear Bob’s perspective on topics like how to come back from a setback, the characteristics of a great leader, and ways to find balance in this 24/7 environment.   

Want to learn more? Explore the full report of findings in PwC's 24th Annual Global CEO Survey and related webcast.

Bob Moritz serves as the Global Chairman of the PwC International Network, which supports over 250,000 employees in 158 countries who proudly serve clients across the globe, ranging from multinational corporations to start-ups. Previously, serving as the PwC US Chairman and senior partner, Bob focused on increasing quality, building the PwC brand in the marketplace, and hiring and developing talent with an eye toward the future. Bob currently sits on a number of boards, including the Business Roundtable, the Oswego College Foundation, the Conference Board, and the International Business Community of the World Economic Forum.

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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2021 began with President Biden stepping into office and the Democratic Party effectively taking control of Congress, paving the way for expected changes to tax, trade, and regulatory policy. This quarter, we will share some of the changes that we foresee as a result of the new administration, and discuss some recent trends that seem to be continuing unabated. For example, the pace of corporate transactions continues to rise since the depth of the pandemic, and special purpose acquisition companies (SPACs) are continuing to generate a lot of traction both in their initial public offerings (IPO) and subsequent mergers with non-public entities.

In addition, the start of a new reporting cycle usually means adopting various amendments from the FASB and this year is no different. Income tax simplification and equity investments are top of mind. Amendments to the SEC’s disclosure rules for business acquisitions and dispositions and changes to Regulation S-K disclosure requirements are effective this year as well, and companies are continuing to prepare for the impacts of reference rate reform.

In this edition of The quarter close, we highlight these and other relevant accounting and reporting topics you should consider as we close out the first 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 preparing you for the year ahead by 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.

This week host Heather Horn sits down with Chris Rhodes and Andreas Ohl, PwC partners who specialize in deals. We look at the drivers behind the busy deals market, and the trends reshaping the M&A space—from digital to ESG to— you guessed it, SPACs.

Topics include:

• 1:04 - Re-examining the buy vs. build question. Between today’s rapidly changing environment and the risk of missing a hot market, M&A has accelerated. We begin with an overview of the key trends.
  • 6:03 - Trend 1: tech-enabled agility. Digital deals are prevalent. We talk about some of the reasons and post-deal integration challenges, as well as the valuation reward of capturing scale.
  • 16:40 - Trend 2: ESG. We’re seeing a lot of opportunities in this market-driven movement. We also highlight the greater focus on due diligence and talk about the relationship to ESG reporting. 
  • 24:51 - Trend 3: SPACs. While we’re only beginning to see the impact of having SPACs competing for transactions, we talk about this new class of buyer. 
• 30:16 - Looking into our crystal ball. Where is the deals market headed? We close with thoughts on adjusting to the new pace in deals while delivering on the value proposition. 

Want to learn more? Check out our Deals page.

Andreas Ohl is a partner in PwC's National Office focused on 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.

Chris Rhodes is a partner in PwC's Transaction Services practice. He provides commercial structuring, valuation, and accounting advice for a variety of transactions under both US GAAP and IFRS. His focus includes strategic transactions, such as acquisitions, divestitures, and joint ventures, along with capital raising and capital restructuring.

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].

Distinguishing between a change in accounting principle and a change in estimate can be difficult, but the distinction is critical to applying the correct guidance. To help think through the accounting, host Heather Horn is joined by Pat Durbin and Tom Barbieri, Deputy Chief Accountants in PwC’s National Office. 

Topics include:

• 0:41 - Background. We start with an overview of the different types of accounting changes and provide examples of each. 
• 4:33 - Change in accounting principle. Pat walks through the steps that companies should take when changing an accounting principle, and how to navigate the preferability assessment. 
• 18:03 - Accounting for changes in accounting principles. Once you’ve identified a change in principle, how is that reflected in the financial statements? Tom explains the two step process and shares thoughts on disclosures. 
• 30:21 - Change in estimate. Changes in estimate frequently come up as a result of new information or modifications to estimating techniques. Pat highlights the accounting considerations.
• 35:33 - Key reminders. Don’t wait! Tom covers key reminders, including preferability letters and capturing the appropriate disclosures.

Want to learn more? Read chapter 30 of our Financial statement presentation guide.

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 National, he has been at the forefront of emerging accounting issues and has regular interactions with the FASB, SEC, and other regulators and standard setters.

Pat Durbin is a Deputy Chief Accountant in PwC’s National Office and the leader of the revenue and liabilities division. 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. 

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 preparing you for the year ahead by 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.

This week host Heather Horn sits down with Roger Wery, PwC’s Global Consulting & Deals Leader for the technology, information, communications and entertainment industries, to talk about the six operational levers companies should pull concurrently to achieve revenue growth. A revenue command center can help.

Topics include:

• 0:52 - The time for growth is now. There is definitely a realization that growth needs to be central to a company’s agenda. We begin with an overview of an approach to boost revenue using a set of six growth initiatives. 
• 5:10 - The operational levers to growth. Heather and Roger break down each of the six levers, all of which should be done concurrently, looking at how each is a sustainable source of growth and competitive differentiation. 
  • 6:11 - Lever 1: Reset segmentation roles 
  • 7:04 - Lever 2: Adopt new revenue models
  • 11:18 - Lever 3: Enhance digital engagement capabilities 
  • 15:36 - Lever 4: Implement creative and dynamic pricing 
  • 17:20 - Lever 5: Accelerate and automate business processes 
  • 18:28 - Lever 6: Evolve the offerings portfolio 
• 27:02 - Growth outlook? We close by looking into our crystal ball to share thoughts on what we’ll be talking about three years from now related to growth. 

Want to learn more? Check out these resources, How companies can transform information into insight. 

Roger Wery is PwC’s Global Consulting & Deals Leader for technology, information, communications and entertainment industries. Roger has been in consulting for over 25 years and has worked with a broad range of clients in the US and internationally. He has been a senior advisor to leadership and board members on a number of critical business priorities: Growth and Innovation strategy, M&A strategy, as well as business, digital and operating model transformation. 

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].

Variable consideration in revenue contracts is more common than you might think, and the accounting for it can require  a considerable amount of judgment. To help make sure you have the right revenue recognition, we’ve asked Angela Fergason, a partner in our National Office, to join host Heather Horn to walk through the guidance. 

Topics include: 

• 0:47 - The many forms of variable consideration. We begin with an overview of variable consideration under the new revenue guidance and share some common examples of the common types of variable consideration in a revenue contract. 
• 6:25 - Estimating variable consideration. We cover the two methods for estimating variable consideration at contract inception: the “expected value” method and the “most likely amount” method.
• 9:36 - Constraint on variable consideration. An estimate of variable consideration is subject to a constraint. Listen as Angela breaks down what exactly this means.
• 15:49 - Exceptions for estimating variable consideration upfront. There are a few situations when you might not have to estimate variable consideration upfront. Angela walks through a few of the scenarios.
• 23:24 - Revenue vs lease components. We frequently see contracts with revenue and lease components. Angela explains how the revenue and lease models differ when contracts have variable fees.
• 25:38 - Reminders and disclosures. We close by wrapping-up with key takeaways and an overview of the multiple disclosure requirements. 

Want to learn more? See chapter 4 of PwC’s Revenue from contracts with customers guide.

Angela Fergason is a partner in PwC's National Office with over 20 years of experience, specializing 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.

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 preparing you for the year ahead by 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.

This week, we conclude our deep dive into ESG by focusing on the “S,” or social, initiatives. Heather Horn sits down with Aaron Gilcreast, PwC’s Global Valuation Leader, and Andreas Ohl, a partner in PwC’s National Office, to look at how companies are rebalancing their strategy to address societal challenges and building measurement frameworks that help prioritize and report on these societal initiatives.

Topics include:

• 1:05 - Overview. We begin by highlighting a few big societal challenges—from globalization impacting supply chains to employee wellness and satisfaction—and how the companies that work to address these matters gain a competitive advantage in the marketplace.
• 4:14 - Value creation vs. value destruction. To calculate ROI on societal investments, organizations need to begin thinking about the measurement of these intangibles, which is part of a disciplined capital allocation process and robust reporting.   
• 10:44 - The time is now. The momentum behind ESG is powerful as a result of increasing interest from investors and consumers. But it’s good for the company too. We look at the brand-enhancing benefits of translating intangible attributes into quantifiable metrics. 
• 20:44 - Global challenges. We talk through some of the challenges in executing and reporting on societal initiatives faced by companies with a global footprint.
• 22:59 - Key takeaways. Companies have a role to play in proactively addressing societal issues, but they must be disciplined to build resilient assets and maximize value. 

Want to learn more about ESG? Check out our C-suite summary, Making sense of ESG.

Aaron Gilcreast is the PwC’s Global Valuation Leader. His professional services career in finance, M&A, and corporate strategy spans 25 years. In his concurrent role as leader of PwC's Global Valuation & Business Modeling practice, Aaron is responsible for its overall vision, strategy, and operations. 

Andreas Ohl is a partner in PwC's National Office where he focuses on 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 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.

With the discontinuance of LIBOR in sight, there are things companies should be doing today to ensure a smooth transition. Host Heather Horn is joined by PwC partners Chip Currie and David Challen to discuss some of the business and accounting issues that need to be thought through prior to LIBOR going away. 

Topics include:

• 1:01 - Background. We start with a refresher on the basics: what is LIBOR and why are we talking about it now? 
• 4:54 - Timing. We discuss the estimated LIBOR transition timeline.
• 6:24 - Act now. Chip discusses what companies should be doing today to prepare for the change.  
• 8:33 - Replacement rates. David highlights key differences between LIBOR and possible replacement benchmark rates, such as SOFR.
• 11:15 - Legacy LIBOR contracts. Lots of LIBOR references in legacy contracts? We talk you through next steps. 
• 13:56 - Accounting issues. The accounting side of the LIBOR phase-out is complicated. Chip covers some of the accounting issues companies need to be thinking about now and some of the relief that’s available.
• 16:08 - Focus areas. It’s hard knowing how to start. We close with key takeaways for where finance teams should be focusing their attention first.

Want to learn more? Visit our LIBOR page, read our Reference rate reform guide, and listen to our podcast, Contracts filled with LIBOR references? Now what?

Chip Currie is a Partner in PwC’s National Office with over 20 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.

David Challen is a Partner in PwC’s National Office, hailing from the Banking Capital Markets practice in New York. He has worked with clients ranging from large, multinational banking institutions to broker-dealers and asset management advisors and funds and currently focuses on consultations related to financial instruments. 

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.

In our Forecast 2021 podcast series, we’re focused on preparing you for the year ahead by 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. 

This week, we continue our deep dive into ESG with a talk on the “E,” the environment. As more companies are announcing their commitments to reach net zero emissions, Heather Horn sits down with Casey Herman, PwC’s US Power & Utilities leader, and Ron Kinghorn, PwC’s ESG platform leader, to zero-in on how companies are developing their net zero strategy.

Topics include:

• 1:05 - Timing is everything. While it is possible for companies to reach low carbon or zero carbon energy, the question is how long it will take. We begin by looking at the pace of technology and where different types of companies— producers, industrial users, and non-industrial users—are on the journey to net zero.
• 7:57 - The role of regulation. Investors and consumers are pushing for change. What is the impact of regulation? Casey explains how the role of public policy affects the pace of change, but not the path.
• 11:09 - The ROI on necessary investments. As companies invest and assess the feasibility of new technologies, we look at how they need to turn long-term goals into measurable milestones.
• 19:36 - Managing risk. It is important to be appropriately aggressive, but appropriately thoughtful when developing the right policies and procedures.
• 28:18 - Best practices. Decarbonization is a transformational project. We look at the hard work companies are doing to manage challenges and implement the right plans.
• 30:48 - Future views. There’s a lot left to do. Regardless of the progress made in five years, how satisfied will we be? We close with thoughts on what can be accomplished and how companies leading in reducing their carbon footprint will have a competitive advantage.

Casey mentions the “duck curve.” Want to know more? Check out What the duck curve tells us about managing a green grid.

Want to learn more about ESG? Check out our C-suite summary, Making sense of ESG.

Casey Herman is PwC’s US Power & Utilities Practice leader and heads up the firm's Power & Utilities Practice in the US. Casey has over 30 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 and the Electric Power Research Institutes Advisory Council.

Ron Kinghorn is PwC’s Consumer Markets consulting leader for the US, Mexico, Japan and China; he also leads the firm’s ESG platform. Ron and his team help clients navigate what's next across the food and beverage, consumer products and retail industries to find growth, capture value, execute deals and win with digital and analytics.

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.

Transcripts available upon request for individuals who may need a