PwC's accounting podcast

To help navigate uncertain times, hear PwC partners discuss revenue collectibility considerations 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. In response to the COVID-19 crisis, this podcast is the next episode in a series that will address questions received surrounding the impacts to financial statements. Heather Horn is joined by PwC partners Pat Durbin and Angela Fergason to discuss the interaction of collectibility with the revenue standard. 

Topics include:

• 0:53 - Overview. We begin by reminding listeners how the assessment of collectibility affects revenue recognition and how current events may impact the model.
• 4:46 - Concessions and extended payment terms. In the current environment, companies may provide price concessions and extended payment terms. Angela and Pat discuss these goodwill gestures and how they impact a company's accounting. 
• 8:48 - Reassessing collectibility. Collectibility is an ongoing assessment. We explain the importance of assessing changes in facts and circumstances.
• 12:42 - When collection is not probable. When collection is no longer probable, what should companies be thinking about? Here we help listeners understand the model.
• 16:10 - Interaction with CECL. With many companies adopting CECL this quarter, Angela and Pat close by looking at the interplay between what we’ve discussed and the impairment of trade receivables under the CECL model.

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. 

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].

To help navigate uncertain times, hear PwC discuss interim disclosure considerations as companies look ahead to their quarterly filings.

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 received surrounding the impacts to financial statements. Heather Horn is joined by Eric Sullivan, a PwC director, to focus on key impacts that COVID-19 could have on Form 10-Q filings, as well as other disclosure updates relevant for Q1 2020.  

Topics include:

• 1:12 - SEC filing relief. We begin by reminding listeners about recent filing relief available for companies affected by the COVID-19 crisis.
• 4:10 - SEC disclosure guidance. The SEC recently issued guidance to consider when evaluating how COVID-19 might impact disclosure. Eric walks through key areas of disclosure within the financial statements and MD&A and discusses non-GAAP considerations.  
• 14:58 - Internal controls. Companies are having to think through how their controls operate in the current environment. What do they need to consider from a 10-Q perspective? Eric explains.
• 17:46 - Other Q1 2020 considerations. Even while COVID-19 is top of mind, don’t lose sight of a few other important topics for Q1 reporting. Eric highlights SEC rule updates, leasing disclosures, and the adoption of the cloud computing and CECL standards. 
• 23:26 - Final thoughts. We close with reminders about the importance of early communication with auditors and encourage  listeners to reach out to the SEC with questions related to the deadline relief, disclosure guidance, or other concerns regarding the impacts of COVID-19.

Eric Sullivan is a director in PwC’s National Office specializing in SEC financial reporting matters. With over a decade of accounting and auditing experience, Eric has served public and private clients in the technology and media 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 part of a series that will address questions received surrounding the impacts to financial statements. Heather Horn is joined by PwC partner Andreas Ohl to focus on fair value in the context of goodwill, intangibles, and long lived assets.

Topics include:

• 1:05  - Overview. We begin by establishing a foundation for understanding fair value concepts. Andreas provides an overview of the concepts and key considerations to keep in mind.
• 2:35 - Best practices. What are some helpful tips when companies are determining fair value estimates? Andreas explains.
• 8:02 - Control premium considerations. A common question we hear relates to the control premium assumption. Andreas explains what the concept represents and what companies should  think about in the current environment.
• 12:47 - Discount rates. Addressing another common question, Andreas walks listeners through the discount rate assumption model and how it  should be applied in the current environment. 
• 16:10 - Distressed markets. We close by discussing the concept of distressed markets. We close with a discussion on the goodwill impairment model and share examples of potential triggering events for interim impairment testing.

About our guest
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. 

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].

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 part of a series that will address questions received surrounding the impacts to financial statements. Heather Horn is joined by PwC partner Andreas Ohl  to cover common questions and give helpful reminders on an accounting fundamental: nonfinancial asset impairment.

Topics include:

• 1:10  - Order of impairment testing. Before diving into the specific impairment models, Andreas helps listeners understand the order in which assets should be tested for impairment. He also highlights the differences in testing order for assets that are held and used vs held for sale.
• 2:48 - Long-lived assets impairment model. The nature of and need for impairment testing varies based on the type of nonfinancial asset being assessed. Andreas walks through the specific models for performing impairment testing.
• 9:04 - Long-lived assets triggering events. The concept of a triggering event is critical to the nonfinancial asset impairment model - that’s what “sets off” the need for a full quantitative impairment test. Andreas provides some examples of triggering events.
• 12:24 - Goodwill impairment model. Once listeners understand the long-lived asset impairment model, Andreas explains how it differs from the model for goodwill and indefinite-lived intangible assets.
• 15:45 - Goodwill triggering events. We close with a discussion on the goodwill impairment model and share examples of potential triggering events for interim impairment testing.

About our guest
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. 

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].

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 part of a series that will address questions received surrounding the impacts to financial statements. Heather Horn is joined by PwC partners Tom Barbieri, Chip Currie, and Matt Sabatini to focus on the impairment models for various financial instruments.

Topics include:

• 0:50  - Available-for-sale (AFS) debt securities. The current economic environment has companies focused on the application of impairment models. Chip and Tom begin by discussing the model for AFS debt securities, as well as give some practical considerations given today’s environment.  
• 7:19 - Equity securities using the measurement alternative. Next, we discuss what companies should consider regarding the impairment model for equity investments accounted for using the measurement alternative.
• 12:30 - Equity method investments. Turning to the last financial instrument in our discussion, Matt provides thoughts on the impairment model for equity method investments and how companies will need to exercise judgment in their evaluation. 

About our guests
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 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 Financial Accounting Standards Board, SEC, and other nationally renowned accounting experts. 

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.

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].

Clearly there’s a lot going on in the world as the first quarter of 2020 comes to a close. PwC partners Heather Horn and Cody Smith focus on the accounting questions that are top of mind as companies think about their March 31 reporting.

Topics include:

• 0:45 - Recent COVID-19 developments. Constant change seemed to be the theme for the end of the first quarter. Cody begins by highlighting the most current events that closed the quarter, including the SEC’s order extending filing deadlines, the SEC staff's disclosure guidance, and the CARES Act.
• 7:57 - Impairments. Top of mind—and concerning all asset categories, is impairment. Cody addresses questions regarding different impairment models, particularly related to goodwill, and fair value.  
• 8:46 - Subsequent events. As companies look ahead and consider what may happen in April, Cody provides reminders about the subsequent events framework.
• 10:43 - Other quarter-end considerations. Beyond the COVID-19 impacts, there are a number of other accounting-related topics that companies will need to consider at the March 31 close. Cody discusses CECL, LIBOR, and tax simplification.
• 16:15 - SEC updates. Cody shares some of the SEC’s new rules aimed at simplifying reporting and reducing the related cost burden.

About our guest
Cody Smith is a partner in PwC’s National office with over 20 years experience who specializes in the accounting for business combinations and related areas, such as consolidations, disposals, impairments, and segment reporting. 

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. 

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 second in a series that will address questions received surrounding the impacts to financial statements. Heather Horn is joined by Chip Currie and Christophe Cadiou, PwC partners, to focus on CECL considerations.

Topics include:

• 1:55 - Macroeconomic considerations. Since adopting the standard on Jan 1, much has happened in our economic environment—most of it unanticipated. Christophe provides insights into a few of the emerging economic forecasting themes.  
• 4:55 - Controls and other considerations. There are many considerations when determining whether a company's processes function appropriately in this new environment. Christophe and Chip discuss some of the credit matters they are seeing and the adjustments companies are making to communicate the rapidly changing environment around CECL.  
• 6:35 - Credit models and processes. Companies have developed new models to make estimates of credit losses. Christophe discusses what companies are asking themselves to make sure their models are capturing the right information. 
• 12:07 - Third-party data. Beyond the importance of understanding the data and having effective controls, there are other  critical areas that companies will need to think about when dealing with third-party data. Chip explains.
• 14:05 - Disclosures. A final, key item that companies will need to make sure they’ve appropriately addressed is the disclosures. Chip provides reminders. 

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.

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.

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].

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 first in a series that will address questions received surrounding the impacts to financial statements. Heather Horn is joined by Chris Merchant and Tom Barbieri, PwC partners, to focus on fair value considerations.

Topics include:

• 0:40 - Market overview. We begin by discussing how COVID-19 is affecting world markets and the profound challenges that businesses are facing.
• 3:32 - Valuation considerations. Fair value is one area of GAAP that has not significantly changed in recent years. Here we discuss the fundamental principles for how companies should think about fair value including the valuation premise and the fair value hierarchy. 
• 9:42 - Determining the fair value during market volatility. COVID-19 disruptions are causing a lot of uncertainty. Tom and Chris explain what companies need to know regarding certain  judgements and assumptions. 
• 15:30 - Levelling. Given that companies may be using different inputs in their valuations, Chris discusses what companies should consider as they prepare their levelling tables.
• 21:06 - Oversight. We close the episode by addressing questions received regarding governance over valuation.

About our guests

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. 

Chris Merchant is a partner in PwC’s Financial Markets Practice, leading 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.  

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].

We understand the challenges involved with our current situation - balancing personal and professional lives, working remotely, and many others - particularly now that it is the time of year when thoughts turn to matters like quarterly reporting. With that in mind, we offer this quarter’s edition of The quarter close, including the latest on accounting for the impacts of the COVID-19 outbreak. In addition, topics for the first quarter of 2020 include:

• adoption of the new credit losses standard
• the FASB’s release of guidance to mitigate the impact of reference rate reform
• considerations when applying the simplified goodwill impairment model

We are also introducing two new sections beginning in this edition of The quarter close: “Inside scoop” will help you stay ahead of a developing technical accounting trend while “Ask the National Office” dives deeper into an accounting issue through an interview with one of our National office consultants.

When companies experience temporary cash flow issues during uncertain times, the ability to repay debt may come into question. What should companies know when that happens?

Listen as Heather Horn and  Suzanne Stephani discuss debt from a borrower’s perspective, covering key reminders on the accounting for covenant violations and debt restructurings. Topics include:

• 0:37 - Overview. We begin by taking a look at the volume of corporate debt and why some worry about the potentially higher debt default rates.
• 2:36 - Covenant violations. Suzanne explains what companies should think about if they are at risk of violating a covenant in their debt agreement.
• 6:43 - Subjective acceleration clauses. What are subjective acceleration clauses, and how could they impact debt classification? Suzanne fills us in. 
• 09:53 - Troubled Debt restructuring (TDR). Debt restructurings can happen for a variety of reasons; and, in times of economic uncertainty, there could be an uptick in TDRs. Suzanne covers the TDR accounting model.  
• 18:07 - Related party debt restructurings. In economic downturns, we may see more related party debt being restructured or extinguished at terms favorable to the issuer. Suzanne helps companies think through the considerations in this area.

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 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 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].