With the CECL effective date just around the corner for most calendar year-end SEC filers, many companies are in the final stages of implementation. PwC partners Chip Currie and Chris Rickli join Heather Horn to discuss implementation hot topics and the areas generating the most questions, including:

• 0:53 - Where should companies be in their implementation? Chris talks about dry runs and shares other best practices.
• 4:06 - Implementation considerations for non-financial companies. Chip discusses what’s in scope and where non-financial companies should focus.
• 9:02 - Use of third-party vendors and data to support implementation. Chip and Chris highlight considerations for working with third-party vendors and share lessons learned.
• 13:36 - Disclosures. Chip and Chris discuss SAB 74 and the new vintage disclosures.
• 25:01 - Final thoughts. We wrap up by sharing areas of regulator focus and early lessons learned.

About our guests

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.

Chris Rickli is a Partner in the Banking and Capital Markets practice in New York. Formerly in the PwC National Office, Chris now serves a variety of clients ranging from large, multinational banking institutions to broker-dealers and asset management advisors and funds.

About our host

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 most calendar year public companies head into their first year-end close for the new leasing standard, we discuss some frequently asked questions around the ongoing accounting for operating leases. Listen as Suzanne Stephani and Marc Jerusalem, directors in our National office, join Heather Horn to take a closer look at some of the more common questions. Topics include:

• 1:01 - Lessee payments. We start with new leases and take a look at how to account for the payments that lessees make to get the asset ready for use.
• 4:54 - Lessor reimbursements. Next, we discuss common questions on how lessees account for reimbursement of those payments from the lessor.
• 10:59 - Ending a lease: termination accounting. Marc and Suzanne talk about what should companies be thinking about when a lessee is required to make a termination payment.
• 11:53 - Ending a lease: modification accounting. Some terminations are not so straight forward. Marc explains the accounting considerations for situations when a lessee continues to use the asset for a shortened period of time after the lease termination is agreed upon. 
• 15:50 - The statement of cash flows. We wrap up by discussing how operating leases should be presented on the statement of cash flows.

About our guests

Suzanne Stephani is a director in PwC’s National office with more than 20 years of experience assisting companies in resolving complex accounting issues. Suzanne specializes in the accounting for debt, preferred stock, leases and cash flows. Suzanne is also the lead producer and director of PwC's popular quarterly accounting and reporting developments webcast. 

Marc Jerusalem is a director in PwC’s National office specializing in the new leasing standards (ASC 842 and IFRS 16). As a global leasing specialist, Marc consults with clients on complex lease accounting issues and is a contributor to many PwC National Office publications, including the Leases accounting guide. 

About our host

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].

Stakeholder reporting is communicating how a company defines and measures its purpose and commitment to all stakeholders. It’s a topic of much interest as companies look to balance driving shareholder value with playing a broader role in society. Join Heather Horn as she and Wes Bricker discuss purpose-led reporting and where it’s going in the short and long term. Topics include:

• 0:47 - Overview. Recently, the Business Roundtable leaders met to redefine corporate purpose. Wes gets us up to speed. Then he explains that shareholder primacy and stakeholder capitalism are not mutually exclusive.
• 4:57 - Measurement. How are companies measuring the broader commitment they are making to stakeholders, and where should companies who are thinking about this type of reporting start? Wes explains.
• 9:20 - Best practices. We discuss three concepts― defining your purpose, measuring it, and reporting on it―that can help companies up their game in communicating to stakeholders.

About our guest

Wes Bricker is PwC’s Vice Chair and Assurance Leader for the US and Mexico. In this capacity, he serves as a member of the US Leadership Team and the Global Assurance Executive Leadership Team. Wes’ leadership and oversight of the Assurance practice encompasses audit quality, business development and portfolio strategy, human capital, diversity, innovation, and technology.

About our host

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 responses to the FASB’s invitation to comment on goodwill impairment are in. It’s a topic that has received a lot of attention from a wide range of stakeholders. Join Heather Horn, Andreas Ohl and Chad Morrissey as they take a closer look at the early reactions. Topics include:

• 1:13 - Overview of the comment letter and PwC’s responses. The FASB’s Invitation to Comment was a robust document. We discuss the key topics and PwC’s areas of focus.
• 10:01 - A look at who responded. The almost 100 respondents were from a diverse pool of stakeholders--we break their feedback down for you.
• 16:53 - Key response trends...or lack thereof. Why are some respondents in favor of amortizing goodwill while others are not? We take a closer look at the debate.
• 20:02 - New and surprising. We highlight a few of the more surprising ways some respondents thought about goodwill.
• 25:15 - Next steps. What’s next? We wrap it up by sharing some final thoughts.

About our guests

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.

Chad Morrissey is a principal in PwC's Deals Practice, where he performs valuations of businesses, business interests, various classes of capital structure, and intangible assets. Chad leads the Technology Sector for the US Valuation and Business Modeling Practice.

About our host

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. 

Companies may restructure their debt before the debt is due, and the accounting can get complex. Listen as Suzanne Stephani, a director in our National office, joins Heather Horn to explain the various models and key accounting considerations. Topics include:

• 1:21 - Overview on debt restructuring. Does the guidance need to be applied any time you make a change to your debt? We start by looking at what to think about first. 
• 6:10 - The accounting models. Suzanne walks through each of three accounting models.
• 12:52 - The 10% test. If the lender remains the same, the 10% test is important in determining if the restructuring should be accounted for as a debt modification or an extinguishment. Suzanne explains.
• 13:57 - Common questions and pitfalls. Suzanne explains prepayment options, principal changes and more.
• 20:55 - The statement of cash flows. We wrap up by discussing how debt restructuring fees should be presented on the statement of cash flows.

About our guest

Suzanne Stephani is a director in PwC’s National office with more than 20 years of experience assisting companies in resolving complex accounting issues. Suzanne specializes in the accounting for debt, preferred stock, leases and cash flows. Suzanne is also the lead producer and director of PwC's popular quarterly accounting and reporting developments webcast.

About our host

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].

Accounting for income taxes impacts almost all companies and can be complex. In order to get the accounting right, it’s important to understand what’s in the scope of the income tax guidance. Help is on the way as Jennifer Spang and Kassie Bauman join Heather Horn walk you through the principles involved. Topics include:

• 2:04 - Definition of income taxes. We start with an important first step: knowing what qualifies as an income tax.
   
• 3:46 - Withholding taxes. Withholding taxes are common. Kassie helps us understand how to determine whether withholding taxes are within the scope of ASC 740 and the different models to follow. 
  
  
• 6:44 - Tax credits and other benefits. Jenn explains how it’s not always clear if credits and incentives are in the scope of the income tax guidance. It can take some detective work to get to the right answer. 
  
  
• 10:22 - Partnerships and other non-taxable entities. Legal form alone isn’t always determinative. We discuss what else to consider when figuring out if you need to apply income tax accounting. 
  
  
• 14:11 - The evolving tax landscape. Jenn provides some final reminders. 

About our guests

Jennifer Spang is a tax partner in PwC's National Office who consults on tax accounting under US GAAP and IFRS.

Kassie Bauman is a managing director in PwC's National Office  who consults on tax accounting under US GAAP and IFRS.

About our host

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].

Accounting for contract changes under the new revenue standard can be complex, and not all modifications are accounted for the same. Tune in as Angela Fergason joins Heather Horn to help navigate the guidance by sharing 5 things you need to know about contract modifications under ASC 606. Topics include:

• 0:47 - Definition of contract modification. Before we jump into the accounting, Angela explains what a contract modification is under the new revenue standard.
• 2:09 - Modifications accounting model. Angela explains the accounting for different types of contract modifications. (See table) 
• 4:54 - Key areas of judgment. After discussing the basic framework, Angela and Heather discuss the judgments that impact the conclusion.
• 8:47 - Operational challenges. Having the right processes and controls in place is important. We tell you where to start.
• 10:55 - Disclosures. Before closing the show, we give a heads up on some of the disclosures that could be impacted by a modification.

About our guest

Angela Fergason is a partner in PwC's National Office with 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 accounting guides on Revenue and Stock-based compensation.

About our host

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].

Service concession arrangements can be long term in nature, so day 1 accounting decisions will impact your financial statements for a long time. Tune in as Dusty Stallings joins Heather Horn to discuss 5 things you need to know about implementing the new guidance. Topics include:

• 0:43 - Overview. What is a service concession and what do we mean by  ‘doing business with the government?' 
  
  
• 2:29 - Scope. We dive into the scope of the new guidance in ASC 853 and talk about who it applies to. 
  
  
• 8:18 - Balance sheet presentation. How does this affect your balance sheet? Dusty explains. 
  
  
• 10:08 - Income statement impact. Next we discuss how this guidance affects the income statement. 
  
  
• 17:43 - Common questions. To close out, we address common questions, including those on disclosure requirements and determining performance obligations. 

About our guest

Dusty Stallings is a PwC partner who specializes in the application and interpretation of revenue recognition guidance. Dusty has worked closely with standard setters and industry experts in interpreting the new revenue recognition guidance, and assisted numerous multinational companies with application and implementation.

About our host 

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].