PwC's accounting podcast

Even in a challenging market, deals are still being done. In this podcast episode, we turn our attention to the area of business combinations, specifically the differences in accounting for the acquisition of an asset versus a business. Heather Horn is joined by PwC partners Andreas Ohl and Dan Goerlich to walk through the accounting models.

Topics include:

5:13 - Transaction costs. Taking the perspective of the buyer, Andreas and Dan discuss how to think about transaction costs in the two models.
8:52 - In-process R&D. When the target company  invests heavily in research and development, accounting at the purchase date is starkly different between the two models. Andreas discusses the impact on net income.
11:20 - Contingent considerations. What is contingent consideration and when is it recorded? Dan explains.
15:40 - Goodwill and other considerations. Does the transaction generate goodwill? Andreas and Dan discuss.
19:14 - The seller’s side. What should sellers be thinking about? We close by taking a look at derecognition.

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.

Dan Goerlich is a deals partner at PwC with over 15 years of experience in public accounting, servicing clients primarily in the banking and capital markets industry, including broker dealers and asset managers, as well as the automotive, industrial products, and real estate sectors. Dan focuses on assisting clients with transformative and complex transactions, specializing in the related accounting and financial reporting.  

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. In response to the COVID-19 crisis, this podcast is the next episode in a series that will address questions surrounding the financial impact. Heather Horn is joined by PwC’s partners Pat Durbin and Jay Seliber to help answer some common questions related to restructuring activities and severance actions.

Topics include:

1:10 - Where to start? Jay provides an overview of the three broad categories of severance benefits.

2:24 - Voluntary termination benefits. These are benefits offered by a company for a short period of time in exchange for an employee's voluntary termination. While it’s the quickest one to describe the accounting for, it’s not necessarily intuitive.

5:04 - Involuntary termination benefits under a pre-existing plan. Recently there have been more involuntary terminations, or expected to happen in the near future. Pat and Jay explain the guidance and highlight the differences when accounting for involuntary and voluntary terminations.

10:33 - One-time involuntary termination benefits that aren’t part of a previous plan. So, what’s the model if a company doesn’t have an established plan? Jay discusses the four requirements that need to be met before accruing a liability. 

21:16 - Restructuring costs. Sometimes the termination of employees can have implications on other benefit programs. Pat and Jay explain some of the other restructuring or exit costs that are top of mind for companies. 

26:01 - Income statement presentation. After covering the accounting models, we close by discussing where companies should report some of these “one-time” charges on their P&L.

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. 

Jay Seliber is a partner in PwC’s National Accounting Services group with over 30 years of experience. He helps clients with their most complex accounting matters, particularly in the areas of revenue recognition, M&A, stock compensation, employee benefits, restructurings, impairments, and 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 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].

By 2022, LIBOR will be discontinued, which could mean big changes for companies. To help manage the transition, Heather Horn is joined by PwC partners Brian Staniszewski and Nick Milone to discuss the key accounting and financial reporting considerations when LIBOR is phased out.

Topics include:

• 0:47 - Scope. The FASB issued new guidance to ease the potential accounting impacts when LIBOR is discontinued. Brian begins by sharing the scope of the guidance and to whom it will apply.
• 5:15 - Accounting model. A broad variety of contracts are expected to be impacted by the LIBOR transition. Nick elaborates on the judgment that will be needed to evaluate whether a contract modification qualifies for an optional expedient.
• 9:33 - Hedging. How will the transition from LIBOR affect hedge accounting? Brian shares insights on how the  guidance will provide relief for hedging relationships.
• 15:32 - Other impacts. What are some of the other areas that could be impacted that companies should monitor? Nick explains.
• 19:20 - Transition dates. Brian explains the effective date and transition provisions, and the sunset provisions, of the FASB’s guidance.

Nick Milone is a partner in PwC’s Financial Markets practice where he advises companies on current accounting issues, and the application of accounting standards. Prior to this role, Nick was a Practice Fellow at the FASB, where he was a member of the Financial Instruments Team. As part of that team, Nick worked on the hedge accounting and recognition and measurement projects.

Brian Staniszewski is a partner in PwC’s National Office. Brian helps engagement teams and clients principally in the financial services industry navigate a broad range of   technical topics, including hedging, derivatives, and credit losses.

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 liquidity, you're not alone. In response to the COVID-19 crisis, this podcast is the next episode in a series that will address questions surrounding the financial impact. Heather Horn is joined by PwC’s business recovery service specialist, Steve Fleming, to help think through the cash flow challenges that companies face during times of crisis.

Topics include:

• 0:35 - Managing liquidity in a time of crisis. Managing liquidity in a crisis comes with unique challenges. Steve compares how companies have historically thought about liquidity to what has changed as a result of the COVID-19 environment.
• 1:40 - The role of the controller's department. Addressing liquidity concerns is a team effort. Steve discusses the planning and coordination needed across the finance and accounting departments.
• 3:40 - First steps. Know your numbers and plan for the worst. Steve highlights the importance of acting swiftly and establishing a liquidity runway.
• 5:11 - Contingency planning. After a company assesses its needs, what are the next steps to consider? Steve walks through the operational levers available to companies in order to protect their position.
• 11:21 - Managing stakeholders. Companies need to effectively communicate their plans related to liquidity to their various stakeholders—including key suppliers and customers. Steve outlines what should be considered in an effective communication strategy.
  
  Steven Fleming is a  PwC turnaround & restructuring leader helping clients in a variety of areas, including: strategic planning, complex debt restructurings, cash flow and working capital management, identification of liquidity enhancing activities and cost savings initiatives. He has over 22 years of experience assisting public and private clients in a range of industries.
  
  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 financial reporting, you're not alone. In response to the COVID-19 crisis, this podcast is the next episode in a series that will address questions surrounding the impacts to financial reporting. Heather Horn is joined by PwC valuation specialists Chris Merchant and Chris Bailey to help resolve some of the valuation challenges in the current environment. 

Topics include:

• 1:15 - Real estate. Recently, real estate has seen a lot of unexpected disruption. We begin by looking at the trends and hone in on areas of concern from a model perspective. 
• 8:23 - Private equity. What are the valuation challenges for private equity? Chris walks through  how to consider a lack of transactions in the market and delays in the availability of information.
• 13:31 - Governance. In times of disruption, strong governance is important. Here we discuss the current challenges to effective oversight.
• 17:29 - Operations. What operational questions should you be asking right now? In this segment, we discuss performing a holistic portfolio review. 
• 22:30 - Looking ahead. As we look to the next reporting deadline, what information should be top of mind? Hint: documentation is key.

Chris Merchant, a partner in PwC’s Financial Markets Practice, leads the Financial Analytics Team. With nearly 20 years of experience serving a diverse range of institutions, Chris advises clients on strategy, operations, and disruption, with a particular focus on harnessing emerging technologies to improve customer experience, draw insights, and leverage data to create institutional value.

Chris Bailey, a director in PwC’s Financial Markets Practice, focuses on commercial real estate and private credit. Chris has experience in transaction advisory, underwriting, credit assessment, structuring, due diligence and valuations, and corporate entities within investment banking and advisory roles.

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].

This podcast is the next episode in a series addressing the impact COVID-19 can have on financial reporting. Heather Horn is joined by Gregory Johnson, a PwC director leading outreach to the investor and analyst communities, who shares his insights on the information and transparency investors will be seeking. 

Topics include:

• 1:07 - Overview. Given current events, analysts and investors are looking for new information. Gregory sets the stage. 
• 3:38 - Cash. What are investors looking for most from companies’ communication? Gregory outlines investors’ focus on cash and any restrictions on access. 
• 4:57 - Liquidity. If cash is king, liquidity is a close second. Gregory discusses how the investor community is trying to understand the impact of COVID-19 on companies’ liquidity, which may be an indication on whether they can survive long term. 
• 6:26 - Reducing expenses. What are companies disclosing in terms of cost cutting? Gregory also discusses how cash needs may impact dividends and stock buyback plans. 
• 12:15 - Long-term viability. Given the high level of uncertainty for the future, we wrap up with insight on how companies have adjusted their strategy (or plan to) for longer-term success.

Gregory Johnson is a director in PwC’s National office with a primary focus on investor engagement. In this role, Gregory builds relationships with investors, analysts, and governance professionals to gain insights into their views on corporate reporting, industry trends, regulatory developments, and other issues that may impact investment decisions. 

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].

To help navigate uncertain times, hear PwC discuss the CARES Act and the liquidity programs it aims to provide companies.

You’ve heard about the CARES Act - but do you know the business provisions and areas of focus that companies are most interested in? This podcast is the next episode in a series that addresses questions received surrounding the impacts of COVID-19 and related legislation on your financial statements. Heather Horn is joined by PwC’s Suzanne Roske, Rohit Kumar, and Michael O’Brien to discuss the business opportunities of the CARES Act.

Topics include:

• 1:16 - Background. We begin with an overview of the three-phased congressional action, and then give a view into the CARES Act and other remedies that the government is employing. 
• 3:59 - Tax implications. What are some of the tax provisions in the CARES Act? Rohit discusses recovery rebates, loan facilities, unemployment insurance, and more. 
• 8:55 - Loan programs.  How can companies take advantage of the variety of available loan programs? Suzanne outlines three buckets of focus for companies. 
• 22:05 - Accessing the right relief. There are effective moves to ensure you’re accessing the relief programs that make the most sense for your company. Here we discuss the importance of scenario planning and compliance considerations. 
• 30:15 - What’s next? We wrap up with thoughts on what listeners may see next coming from Congress.   

Suzanne Roske is a Partner in PwC’s Government Contracts Practice. With over  18 years experience, Suzanne provides expert advice to commercial companies and non-profit organizations that do business with the US Government. She specializes in assisting clients in the areas of business consulting, strategic initiatives, transaction services, and regulatory compliance actions. 

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].

Hear the most recent results from PwC’s CFO survey tracking how finance leaders view the impacts of COVID-19 and the actions they are taking to respond.

Corporate leaders are dealing with a significant level of disruption. We surveyed CFOs on how they are dealing with it. This podcast is the next episode in a series that addresses the financial reporting impacts of COVID-19. Heather Horn is joined by Amity Millhiser, PwC Vice Chair and Chief Clients Officer, to explore the most recent findings from PwC’s biweekly CFO survey tracking how finance leaders view the impacts of COVID-19 and the actions they are taking to respond.

Topics include:

• 0:46 - Background of the CFO Pulse Survey. The PwC CFO Pulse Survey incorporates feedback from both private and public companies across a variety of sectors. We set the stage on what it has uncovered. 
• 5:45 - Liquidity and cost cutting. Liquidity and cost containment are two areas of focus for companies. Amity and Heather discuss the survey findings in this area and the difficult decisions companies face. 
• 8:55 - Government programs. Amity highlights the various government programs benefiting companies, including tax payment deferrals and the extension of deadlines.   
• 10:46 - The workforce. CFOs must manage a remote workforce while balancing productivity. Amity discusses how CFOs are dealing with these challenges. 14:38 - Financial reporting. The vast majority of CFOs surveyed anticipate changes to their reporting and disclosures. Amity closes the episode by explaining what we’re hearing from a financial reporting perspective.

Amity Millhiser is PwC’s Vice Chair and Chief Clients Officer, where she serves as the firm's leading client adviser. From her base in Silicon Valley, Amity brings perspectives on digital and emerging technologies to clients as well as experience leading transformations across industries and sectors. Amity is a thought leader on diversity in business as a contributor to PwC's co-founding of the CEO Action for Diversity and 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].

To help navigate uncertain times, hear PwC leasing specialists discuss lease rent concessions as companies look ahead to their March 31 reporting.

If you’re unsure about how COVID-19 might impact your financial reporting, you're not alone. This podcast is the next episode in a series that will address questions surrounding the impacts of COVID-19 on your financial statements. Heather Horn is joined by John Bishop, a partner, and Suzanne Stephani, a director both from PwC’s National office. In this episode, we’re focusing on questions related to how rent concessions should be accounted for from both a lessee and a lessor perspective.

Topics include:

• 1:12 - Overview of rent concessions. We begin by giving background on common types of rent concessions. 
• 6:01 - FASB relief on rent concessions. In response to preparers concerns, the FASB recently provided some relief. John fills us in on the details.  
• 10:30 - Lessee accounting for rent concessions as a modification. The FASB's relief is structured as an election. Now companies are trying to decide whether to make the election. Suzanne walks through the various considerations.  
• 12:46 - Rent concession and force majeure clauses. Here we discuss the alternative if a lessee chooses not to treat a concession as a modification. Suzanne helps us understand what this means.  
• 24:40 - Lessor accounting for rent concessions and collectibility. We close the episode by turning to the lessor. John explains what the FASB’s relief means for lessors and answers some common questions.

John Bishop is a partner in PwC's National office and the co-leader of the financial instruments team. In this role, he leads the group in advising the firm’s clients on a wide array of accounting and reporting matters. John specializes in the accounting for derivatives, financial instruments, financing transactions (e.g., securitizations and leasing) and M&A transactions. 

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. 

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].

To help navigate uncertain times, hear PwC discuss the CARES Act—what’s in it and the accounting impacts.

You’ve heard about the CARES Act - but do you know how to account for its provisions. This podcast is the next episode in a series that addresses questions received surrounding the impacts of COVID-19 and related legislation on your financial statements. Heather Horn is joined by PwC’s Pat Durbin, Tom Barbieri, and Michael O’Brien to discuss the accounting implications of the CARES Act as well as highlights from the FASB’s April 8th meeting. 

Topics include:

• 1:26 - Background. We begin by giving background on the genesis of the bill and an overview of what’s in it.
• 4:15 - Credit losses and troubled debt restructuring. Tom discusses the accounting relief provided to companies in these topical areas and helps to interpret the guidance.
• 11:40 - Grants. The bill contains many different types of grants, including grants for not-for-profits. Pat highlights the different accounting considerations.
• 21:24 - Loan programs. Tom provides an overview of the loan programs in the Act and discusses how borrowers can account for these loans.
• 23:00 - Tax implications. There are a number of items in the Act that have tax implications. Pat explores aspects of the CARES Act that will be accounted for under the income tax guidance.
• 30:55 - Disclosures. There are particular disclosure items that companies need to think about specific to the CARES Act. Pat explains.
• 32:25 - What’s next? We wrap up with thoughts on what listeners may see next coming from Congress.  

As the leader of the revenue and liabilities division in PwC’s National Office, Pat Durbin 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.

Tom Barbieri is a PwC partner and the Financial Instruments Accounting Leader in PwC’s National Office with over 29 years of experience advising clients on complex accounting 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 Financial Accounting Standards Board, SEC, and other nationally renowned accounting experts.

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].