PwC's accounting podcast

Amid the excitement of getting back to a semblance of business as usual, you’re probably asking yourself a lot of questions—as in, what is the new normal and where do I go from here? This podcast is the next episode in a new series for CFOs, controllers—really, anyone in finance—asking big questions, like: how do we emerge from a crisis stronger than before? Each week, we’ll focus on a different area that may need your focus in this period of recovery. 

This week, host Heather Horn sits down with John Potter, PwC’s US Deals Sector Leader, to discuss deal making in today’s environment.

Topics include:

0:42 - Overview: Times of uncertainty can present the best opportunity to make a deal. We kick off by looking at the current M&A environment and the impact of the market into what’s going on with this active landscape.

10:40 - Different types of investments: 

• 10:40 - Divestitures 
• 13:27 -  Special-purpose acquisition companies
• 14:00 - Distressed companies

17:08 - Risks and opportunities: You can’t eliminate uncertainty in an M&A transaction, but you can minimize it. John and Heather discuss the importance of considering the potential upside and downside.

20:25 - Finance’s role in M&A. How can the finance team lean into the deal model to help make—or not make—a deal? Heather and John discuss.

26:30 - Deal team FAQs. John shares answers to common questions companies ask, including how to adapt to doing a deal virtually.

John Potter is a PwC’s US Deals Sector Leader. He focuses on M&A and is known as an innovative and strategic leader in the field. He advises corporate and private equity clients through acquisitions, divestitures, and joint ventures, bringing clarity and focus to the inherent uncertainty of M&A.

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 25 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].

Adopting a new standard while responding to disruption caused by the COVID-19 pandemic has been unprecedented and complex. So, as companies prepare for third quarter reporting and look ahead to year end, Heather Horn is joined by PwC partners Chip Currie, Christophe Cadiou, and Jonathan Odom to focus on the lessons learned from CECL implementations.

Topics include:

• 0:40 - Overview. With the CECL standard becoming effective for calendar year SEC filers right before a severe economic shock, we begin with an overview of adoption issues in 2020.
• 7:38 - Q2 2020—what we saw. The macroeconomic forecasts were more consistent in the second quarter, but some variability remained. Christophe discusses the uncertainty preparers faced and the related judgments required.
• 17:48 - Q3 2020—closing another quarter. As the third quarter comes to a close, what are some of the credit and accounting matters companies should consider? The panel of guests explain.
• 25:38 - Analysts and SEC perspective. We close by highlighting what we’re hearing from analysts and the SEC staff from a disclosure perspective.

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 for 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.

Christophe Cadiou is a partner in PwC's Financial Markets practice with over 25 years experience. He advises financial institutions on practical implementation solutions to complex challenges presented by regulatory and accounting change.   

Jonathan Odom is an assurance partner in PwC’s National Office SEC services practice with over 20 years of experience in providing accounting and advisory services to the financial services 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 over 25 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].

As the financial, economic, and social impacts of the COVID-19 pandemic linger, finance leaders continue to adapt and adjust their ways of managing through these uncertain times.

The liquidity demands accelerated by the pandemic have resulted in the issuance of record levels of convertible debt instruments, which is an area of significant accounting complexity - although some accounting relief was recently provided by the FASB. Companies have also sought increased liquidity through other means, including increased levels of government assistance and through the restructuring of existing debt arrangements - both of which come with their own accounting considerations.

In this edition of The quarter close, we highlight these and other timely accounting and reporting topics, including:

• considerations when assessing the recoverability of deferred tax assets in the current environment;
• insights for navigating the hidden complexities when applying the new goodwill impairment guidance; and
• perspectives on how changes in business operations and strategy could impact segment reporting

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

Amid the excitement of getting back to a semblance of business as usual, you’re probably asking yourself a lot of questions—as in, what is the new normal and where do I go from here? This podcast is the next episode in a new series for CFOs, controllers—really, anyone in finance—asking big questions, like: how do we emerge from a crisis stronger than before? Each week, we’ll focus on a different area that may need your focus in this period of recovery. This week, host Heather Horn sits down with Bhushan Sethi, the joint global leader of PwC’s People & Organization practice.

Topics include:

0:52 - Overview: We begin by looking at the state of reopening the economy and returning to the workplace by highlighting some of the top issues businesses face, including digitizing their business and workforce, improving worker flexibility, and caring for worker well-being.

4:36 - There are no right answers: While each company’s return-to-workplace plans are different, Bhushan shares some common themes from successful companies, such as bold communications and a personalized strategy.

7:31 - Workforce strategy: Bhushan and Heather discuss key focus areas for companies to consider when developing an agile future-of-work plan.

9:39 - Talent management: Bhushan hones in on talent management, including the future skills the finance team needs. 

14:01 - Reskilling: Bhushan and Heather discuss the different models companies are using to work in the current environment.  

17:26 - Future outlook: What will work look like in the summer of 2021? We close with rethinking how we’ll work, engage, and build community.  

Bhushan Sethi is joint global leader of PwC’s People & Organization practice, where he shapes and drives the firm’s global network strategy across 11000+ practitioners in 150+ countries 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 over 25 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].

The economic impact of the pandemic may result in companies looking to shed their non-core assets, which may lead to an increase in transactions requiring carve-out financial statements. With limited guidance, it’s no wonder preparers have questions. In this episode, Heather Horn is joined by PwC’s Andreas Ohl and Elizabeth Crego to discuss the judgments involved in preparing carve-out financial statements.

• 1:11 - Introduction. What information do carve-out financial statements contain and when should a seller prepare them? We kick things off with an overview of different types of divestitures and when these transactions may require financial statements to be filed with the SEC. 
• 9:18 - Top accounting issues. Next we dive into some of the key accounting issues companies may face in the preparation of these statements, including:
  • 9:31 - Basis of presentation
  • 15:07 - Allocation of expenses
  • 18:47 - Goodwill
  • 21:11 - Taxes
  • 22:09 - Subsequent events
  • 25:5  - Parent company considerations
• 26:42 - Key success factors. In order to be successful with these types of statements, we close by sharing helpful reminders.

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. 

Liz Crego is a managing director in PwC’s Deals practice focused on accounting and financial reporting advisory services for transformative M&A integration, divestiture separation, IPOs and capital raising projects. With over 14 years of experience, she has worked closely with c-suite executives to deliver some of the most iconic mergers and divestitures in recent business history. 

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 25 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].

The FASB recently issued guidance that simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. Heather Horn is joined by a panel of guests to summarize what’s changed and the impacted areas.  

Topics include:

• 1:05 - Overview of convertible instruments. Before discussing the new model, we set the stage by providing background on the reason companies may issue convertible instruments, especially in the current market environment.
• 5:53 - Background on the FASB’s project. Distinguishing between liability and equity is one of the more complex areas in GAAP. Here we provide the genesis of  the FASB’s project and highlight the areas that the Board worked to amend.
• 9:42 - Specific impacts. In simplifying the accounting framework, the FASB addressed a handful of areas, including:
  • 9:49 - Convertible instruments
  • 13:31 - Contracts in own equity
  • 19:21 - Earnings per share
• 29:24 - Disclosure and effective dates. We close by highlighting some of the new disclosure requirements as well as sharing the effective dates to be aware of.   

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 for 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.

John Horan is a managing director in PwC’s National office where he assists clients with complex accounting issues in the areas of foreign currency, liabilities and equity, earnings per share, and derivatives and hedging. John specializes in large capital transactions and initial public offerings.

Brian Zenk is a partner with PwC’s Deals practice advising clients on complex accounting and valuation matters, including mergers and acquisitions, joint ventures and alliances, debt and equity financings, financial risk management, and structured transactions. Leveraging his experience, he works with clients to develop creative and innovative solutions to address client needs and business, legal, accounting, tax, and regulatory challenges.

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 25 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].

Amid the excitement of getting back to a semblance of business as usual, you’re probably asking yourself a lot of questions—as in, what is the new normal and where do I go from here? This podcast is the next episode in a new series for CFOs, controllers—really, anyone in finance—asking big questions, like: how do we emerge from a crisis stronger than before? Each week, we’ll focus on a different area that may need your focus in this period of recovery. This week, host Heather Horn sits down with Rohit Kumar, leader of PwC’s Tax Policy Services group.

Topics include:

0:48 - Overview - We begin with an update on the phase four COVID relief legislation bill, funding for the US postal service, and how the upcoming election fits into all of this. 

5:32 - Executive order on employee payroll tax credits - Rohit explains the open questions on the executive order and what could happen next.  

12:09 - Policy between now and November - Turning our attention to the future, do we anticipate any major policy changes or other developments between now and the election? Rohit shares his thoughts on a possible partial government shutdown.

17:15 - Reshoring efforts - The COVID-19 crisis has led to evolving conversations about reshoring and rethinking the supply chain. Rohit and Heather talk about the three reshoring tools available: incentives, tariffs, and mandates. 

21:44 - 2021 and beyond - As companies begin to scenario plan for what policy might look post-election, we close with how companies are rethinking business and the opportunity for a stronger, more resilient economic model.

Rohit Kumar is a principal and leader of PwC’s Washington National Tax Services (WNTS) Tax Policy Services group. In this role, he advises clients on all aspects of domestic policy, including tax policy. His insights and knowledge enable companies to assess critical policy issues more effectively and to develop legislative strategies to address those issues from both a technical and a political perspective.

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 25 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].

Revenue is an important financial metric. So because the gross vs. net determination can have a large impact on the top line, companies need to get that decision right. In this episode, Heather Horn is joined by PwC partner Angela Fergason to discuss the accounting factors for gross vs. net revenue presentation.

Topics include:

0:35 - Overview. Why does the guidance for gross vs. net revenue generate so many questions? Angela kicks off with the history of the guidance and shares the emerging business models that have caused more focus on this area.

5:43 - Steps in the model. Angela and Heather discuss the two-step model and demonstrate its application by applying it to an example. 

9:45 - Control indicators. The determination starts with whether a company controls the specified good or service. Angela discusses the three indicators of control transfer, and how they may apply to a supplier arrangement.

14:58 - Challenging fact patterns. The assessment is harder to navigate when the arrangement doesn’t involve a tangible good. Angela discusses the considerations for when the end customer is receiving a service.

19:40 - Key reminders. We close by highlighting the importance of disclosures and carefully reading all of the contracts.

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.

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 25 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].

Amid the excitement of getting back to a semblance of business as usual, you’re probably asking yourself a lot of questions—as in, what is the new normal and where do I go from here?  This podcast is the next episode in a new series for CFOs, controllers—really, anyone in finance—asking big questions, like: how do we emerge from a crisis stronger than before?  Each week, we’ll focus on a different area that may need your focus in this period of recovery. This week, host Heather Horn sits down with Kevin Keegan, a Partner in PwC’s strategy consulting business, to discuss supply chain risk and recovery planning for 2021. 

Topics include:

0:59 - Overview. A new age of supply chain is coming. We begin by highlighting the emerging trends—and vulnerabilities that the pandemic uncovered—that are changing the way companies think about their supply chains. 

6:06 - Strategic decisions. As the pandemic disruption taught us, lowest cost isn’t always the best strategy. Kevin covers how companies are rethinking their supply chain strategy—from better risk identification tools to alternative supplier sources and locations—and then shares the changes he’s seeing in supply chain financing. 

16:20 - Where to start? Having back-up plans at the ready in the event of disruption is key to having a high-performing supply chain. Kevin and Heather discuss some of the changes companies can act on now and in the longer term.

20:19 - The finance team’s role. Working together is key. There needs to be collaboration between the finance and supply chain teams, including on budgets and goal setting. 

26:31 -  Supply chain FAQ. Kevin shares the top questions he’s hearing from companies, including how to account for and manage changes in fulfillment services.

29:35 - The road ahead. Preparing the supply chain for the new environment will include new innovations. We close by discussing a few emerging opportunities and what makes Kevin optimistic for the future of supply chains.    

Kevin Keegan is a Partner in PwC’s strategy consulting business working to improve business operations for the benefit of both current and future stakeholders. Kevin assists business leaders think through practical approaches to remove costs that are invasive to value and identify and firmly root new types of operating models that enhance growth.

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 25 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].

Form 8-K is a broad SEC form used to share specified events with shareholders. But it’s not always clear when it’s required. That’s why in this episode, Heather Horn is joined by Wayne Carnall to discuss the requirements for this type of filing.  

Topics include:

• 0:56 - Overview. Do all significant events that take place between a quarterly and annual filing require a Form 8-K? Wayne shares examples of common events requiring Form 8-K and the required timing.
• 10:23 - COVID-19. Some companies have recorded an impairment due to the pandemic—which is one of the events that could require an 8-K. Wayne and Heather discuss the regulation for this type of event.
• 16:02 - Acquired businesses and pro forma information. The SEC recently amended its rules related to the financial statements of an acquired business and pro forma information. Wayne highlights how these rules interact with the Form 8-K regulations.  
• 23:16 - Error corrections and auditor changes. Wayne and Heather give tips for navigating 8-K filings to report a correction of an error, and the considerations when there has been a change in an auditor.  

Wayne Carnall is a former Chief Accountant of the Division of Corporation Finance at the SEC. Wayne has broad and extensive financial reporting and regulatory experience involving domestic and international companies in a wide range of industries. Having served in that role during the financial crisis, Wayne worked with other senior officials at the SEC and other agencies and organizations to address and resolve financial reporting matters of unprecedented complexity in a dynamic political environment. 

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 25 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].