PwC's accounting podcast

Amid the excitement around 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 first 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 Tim Ryan, PwC’s US chairman and senior partner, to introduce the series and find out what the view looks like from his chair. 

Topics include:

• 0:59 - Current events. Tim begins by sharing his perspective on the current race relations crisis and how COVID-19 impacted PwC.
• 7:41 - Crisis management. These days, everyone has a role in crisis management. Tim examines how to prepare for challenging times by boiling it down to two important actions.
• 13:58 - Strategy. How can you make decisions quickly and innovate when responding to crisis? Tim explains and shares real world examples. 
• 18:07 - Digital transformation. There are three reasons why digital transformation is important. Tim shares his views on investing in technology during times of crisis.
• 23:29 - Culture. Tim talks about the value  of a culture that allows employees to fail fast and move on. He also tackles how to maintain a positive culture in a remote environment.   
• 27:23 - Our strength is our people. Employees are the ones who make things happen. Tim talks about the importance of supporting your people, and what returning to the office may look like.
• 35:05 - Wrap-up. Tim breaks down the crisis and summarizes his most important takeaways. 

Tim Ryan is US Chairman and Senior Partner. Previously, he served as Vice Chairman and the Markets, Strategy and Stakeholders Leader at PwC, having responsibility for the firm’s strategy function and stakeholder relationships, including investor relations, regulatory affairs, public policy, corporate responsibility, and human capital.

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].

How has the FASB addressed accounting concerns during  the COVID-19 crisis? To help keep preparers well-informed, PwC director Maria Constantinou joins Heather Horn to discuss recently-issued FASB guidance regarding COVID-19 and other areas of standard setting.  

Topics include:

• 2:01 - Effective date deferral. In the midst of the COVID-19 pandemic, the FASB understood that preparers needed help and, therefore, approved a deferral of the revenue and leases standards for some companies. Maria walks through the details.
• 8:42 - COVID-19 issues. Maria covers how the FASB has been working to address the accounting for the impacts of COVID-19, including the recently-issued FASB staff Q&A on hedge accounting. 
• 15:02 - Other active projects. While the formal agenda prioritization project has not happened yet, there are other projects moving forward to be aware of. Maria shares the highlights.

Maria Constantinou is a director in PwC’s National office, responsible for monitoring the FASB’s standard-setting activities and is a frequent contributor to PwC's thought leadership efforts. She is also a Digital Accelerator, responsible for automating and enhancing knowledge sharing using the latest technology. 

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].

With reductions to revenue and disruptions to supply chains, companies started to feel the economic effects of COVID-19 at the end of the first quarter. How did this affect how they reported their quarterly results? We’re here to share some observations.

In this episode, Heather Horn is joined by Wayne Carnell to discuss how companies addressed the impact of the virus, including the use of non-GAAP measures, in their reports.  

Topics include:

• 0:34 - Overview. We begin by sharing the various ways companies disclosed the impact of COVID-19 in their most recent filings. 
• 3:19 - Non-GAAP. Wayne highlights the rules regarding non-GAAP disclosures and why companies like them. He also discusses how companies approached communicating the impact of COVID-19.
• 14:00 - MD&A and notes. How can companies provide investors with information about COVID-19 that would not be appropriate to include in the financial statements? Wayne explains. 
• 22:53 - What’s next? As we look forward to the second quarter, Wayne discusses what companies should consider in identifying items related to COVID-19.

Wayne Carnall is a former Chief Accountant of the Division of Corporation Finance at the U.S. Securities and Exchange Commission. 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].

The variable interest entity (or VIE) model is the starting place for any company thinking through consolidation. It’s a complex model and a frequent area of confusion. We’re tackling the topic in this episode as Heather Horn is joined by PwC partner Matt Sabatini to discuss what you need to know to make sure you’re getting the VIE model right.

Topics include:

• 0:44 - Definition and scope. Matt explains how VIEs fit in the overall consolidation framework and highlights key scope exceptions. 
• 5:40 - Variable interest. How do you determine if you have a variable interest? Matt explains. 
• 12:38 - Variable interest entity. Matt shares the five characteristics of a VIE and discusses the considerations for each characteristic.
• 21:33 - What’s next? Once you’ve determined that you have a VIE, Matt walks through the determination of the primary beneficiary. 
• 30:31 - Reassessment. The VIE model is not a set-it and forget-it model, periodic reassessment is necessary. Matt explains the specific scenarios that trigger reassessment.   

Matt Sabatini is a partner in PwC's National Office with nearly 20 years of experience helping clients and engagement teams navigate the accounting and financial reporting for complex transactions. He specializes in the accounting for M&A, corporate reorganizations, recapitalizations, joint ventures, and other investments. 

Heather Horn is PwC’s National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With 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].

Need an update on the legislative events in Washington impacting your company? We understand. To keep informed, Heather Horn is joined again by PwC’s Rohit Kumar and Michael O’Brien to summarize the government relief programs aimed at energizing the economy.

Topics include:

• 0:40 - Regulatory developments. We begin by discussing where we are in terms of the congressional and federal response to the coronavirus crisis.  
• 6:03 - Implementation and challenges. Here we give an update on The CARES Act. How did implementation go and what changes were made? Michael and Rohit fill us in.
• 17:15 - What’s next? We wrap up with thoughts on what listeners may see Congress do next. 

Rohit Kumar is Principal and Co-Leader of the PwC Tax Policy Services practice. In his role, Rohit 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 develop legislative

strategies to address those issues from both a technical and political perspective. Prior to joining PwC, Mr. Kumar served as the Domestic Policy Director and Deputy Chief of Staff in the Office of Senate Republican Leader Mitch McConnell.

Michael O'Brien is a Managing Director in the Office of Government, Regulatory Affairs & Public Policy. In his current role, Michael represents the firm and its interests before Congress, the Executive Branch, and Federal regulatory agencies. He has represented the firm on matters related to the implementation of Sarbanes-Oxley and Dodd-Frank, state and federal taxation, and litigation reform.  

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 outside basis differences can be complex. In order to get the accounting right, it’s important to first understand the difference between inside basis and outside basis. Help is on the way as Jennifer Spang and Kassie Bauman join Heather Horn to walk you through the basics and then dive a little deeper into the specific considerations. 

Topics include:

• 0:50 - The basics. Before jumping into some of the complexities, we start with the basics: what is an outside basis difference? 
• 5:35 - Domestic vs. foreign classification. A mix of domestic and foreign entities comprises the legal entity structure of a multinational organization. Kassie helps explain this important distinction in the tax classification.
• 6:32 - Deferred tax liability exceptions. There are various exceptions to recording deferred tax liabilities. Jenn provides examples. 
• 9:13 - Deferred tax asset exceptions. Are there any special considerations for deferred tax assets? Kassie explains.
• 10:31 - Measurement considerations. Measuring deferred tax assets or liabilities is an especially complex area. Jenn walks through what companies should consider.

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 navigate 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 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].

In a special two-part episode, Heather Horn is joined by PwC partner Matt Sabatini to discuss the accounting for equity method investments. This Part 1 lays the groundwork for understanding the scope of the guidance and the determination of significant influence. Part II will build on the fundamentals to cover common misconceptions and helpful hints in the application of the guidance.  

Part I topics include:

• 1:08 - Scope. We begin by discussing the types of investments within the scope of the equity method including common stock, in-substance common stock, partnerships, and LLCs.
• 13:22 - Significant Influence. The determination of significant influence requires judgment. Matt and Heather discuss the investment characteristics that companies need to consider in this area.

About our guest
Matt Sabatini is a partner in PwC's National Office with nearly 20 years of experience helping clients and engagement teams navigate the accounting and financial reporting for complex transactions. He specializes in the accounting for M&A, corporate reorganizations, recapitalizations, joint ventures, and other investments.

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].

In a special two-part episode, Heather Horn is joined by PwC partner Matt Sabatini to discuss the accounting for equity method investments. Part 1 laid the groundwork for understanding the scope of the guidance and the determination of significant influence. This Part II builds on the fundamentals to cover common misconceptions and helpful hints in the application of the guidance.  

Part II topics include:

• 1:06 - Misconceptions. Accounting for equity method investments can be a source of confusion. Matt discusses basis differences, equity method losses, and impairment.
• 12:13 - Reporting reminders. We close with reminders related to reporting, such as: lag reporting from the investee, and GAAP and SEC requirements. 

Matt Sabatini is a partner in PwC's National Office with nearly 20 years of experience helping clients and engagement teams navigate the accounting and financial reporting for complex transactions. He specializes in the accounting for M&A, corporate reorganizations, recapitalizations, joint ventures, and other investments. 

Heather Horn is PwC’s National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With 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].

With all the attention on the pervasive impacts of the new revenue standard (ASC 606), some may have overlooked the new guidance on accounting for the costs related to contracts with customers. That’s why Heather Horn is joined by PwC partner Angela Fergason to help navigate the guidance and address some of the questions we’ve been receiving.

Topics include:

• 0:50 - Scope. We begin by discussing the types of costs covered by the guidance and how to navigate the accounting. 
• 3:22 - Costs to obtain a contract. Angela expands on the types of costs associated with signing a new customer contract and the common expenses that meet the criteria for capitalization.
• 8:32 - Costs to fulfill a contract. Once the contract has been obtained, then what? Angela and Heather discuss the types of costs related to fulfilling a contract and when those costs may be capitalized.
• 14:59 - Day 2 accounting. After laying the groundwork for what qualifies for capitalization under the standard, Angela fills us in on how to think about the amortization period.
• 23:54 - Disclosures. Angela explains what companies should be thinking about in terms of disclosures regarding contract costs. 

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 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].

If you’re unsure about how COVID-19 might impact your accounting, you're not alone. This podcast is the next episode in a series that will address questions surrounding the financial impact of certain transactions. Heather Horn is joined by PwC partners Pat Durbin and Angela Fergason to look at the accounting for revenue contract modifications.

Topics include:

1:17 - Current environment. Pat provides examples of the types of contract modifications we’re seeing and challenges companies are facing.
4:30 - Contract assessment. If a company changes the terms to a contract, what is the first step to evaluate whether it is a contract modification? Angela explains.
8:31 - Modification model. What is the accounting for a contract modification? Angela gives a refresher of the model under the revenue standard.
14:39 - Concessions. Price reductions and extended payment terms are common concessions. Pat and Angela discuss the accounting for these types of concessions.
21:09 - Disclosures. What should companies be thinking about regarding disclosures? We give a heads up on disclosures related to modifications.

Pat Durbin is the leader of the revenue and liabilities division in PwC’s National Office. He leads a team of partners and directors responsible for consulting with our clients and engagement teams on complex accounting matters relating to revenue, compensation, income taxes, inventory, and several other topics under both US GAAP and IFRS. 

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 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].