PwC's accounting podcast

Did you submit a question during our Q4 quarterly accounting and reporting developments webcast? Even if you couldn’t join the webcast, you’ll find this episode helpful as we answer the most common questions on recent accounting developments. Tune in as Kassie Bauman, Maria Constantinou, Seth Drucker, Angela Fergason, and Marc Jerusalem join Heather Horn to address topics you need to know about, including:

• 1:15 - CECL. Seth provides more clarity on key controls and investor reaction to the new CECL model.
• 4:57 - Revenue: Principal vs. agent. Angela answers questions on principal vs. agent considerations, including control transfer in the context of a service.
• 11:15 - Leases. Marc shares observations  from comment letters received.
• 15:54 - Tax. Kassie responds to viewer questions on tax simplification and digital taxes.
• 21:27 - Standard setting. Seth and Maria provide updates on reference rate reform and other FASB projects. 

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

Maria Constantinou is a director in PwC’s National Office who monitors the FASB’s standard-setting activities.

Seth Drucker is a partner in PwC’s National Office, specializing in accounting for financial instruments. 

Angela Fergason is a partner in PwC's National Office who consults on the accounting for revenue and employee compensation arrangements. 

Marc Jerusalem is a director in PwC’s National office who consults on leasing transactions.

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.

Accounting for valuation allowances under ASC 740 can be a challenging area because of the extent of judgment involved. PwC’s Heather Horn and Kassie Bauman cover a lot of ground when they take on this complex area. Topics include:

• 4:35 - Weighing evidence from recent years. We start with how to think about positive and negative evidence and cumulative losses in recent years.
• 10:00 - Projections of income and what is “objectively verifiable.” Kassie discusses how companies are required to consider all four sources of potential taxable income when evaluating the realization of deferred tax assets and weigh the available positive and negative evidence.
• 15:09 - Tax planning strategies. Heather and Kassie talk about how to assess available prudent and feasible tax planning strategies, and the importance of real-time documentation of judgments. 
• 18:42 - Common misconceptions. You might need a valuation allowance even when the company is in a net DTL position. And indefinite carryforwards don’t get you off the hook, either. Kassie explains.
• 22:19 - Valuation allowance reversal. Kassie switches gears to end with a discussion about what listeners should know about when to release a valuation allowance.

About our guest
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.

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 defined benefit pension plans can be a complex area, and companies need to be aware of the guidance. That’s why Heather Horn and PwC pension specialist Nicole Berman go back to the basics to highlight a few of the fundamental accounting rules for these types of plans, including: 

• 2:33 - Remeasurement. Nicole walks through the timing of measurement, including how to measure plan assets and obligations.  
• 4:42 - Pension costs. Nicole reminds listeners what’s included in pension costs and talks about how pension costs are determined.
• 6:02 - Recognizing costs. Nicole discusses the timing of recognition. 
• 11:28 - Significant interim events. Big events, like plan freezes, require specific accounting. Nicole explains.
• 16:23 - Final thoughts. We wrap up by sharing a few frequently asked questions―including what to think about when it comes to disclosures.

About our guest
Nicole Berman is a Director in PwC's National office who advises the firm’s partners and clients on accounting for complex transactions related to revenue recognition and employee compensation matters, including stock-based compensation, pensions, OPEB, and restructurings, under both US GAAP and IFRS. She helps craft the firm's positions on new financial reporting pronouncements and assesses the technical merit of FASB and IASB proposals.

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].

PwC’s US public policy leader Roz Brooks joins Heather Horn to discuss Capitol Hill and the impact of politics and public policy on the financial statements. Topics include: 

• 0:46 - Congressional interest in the FASB. Roz explains why Congress is focusing on accounting rules and how Congress and the FASB interact.
• 9:36 - Risks and uncertainties. We dive into more specific areas of focus that may impact companies, including privacy.
• 13:03 - Trade and tariffs. Roz provides an update on the trade wars and how they may impact financial statement preparers and users.
• 19:11 - Final thoughts. We wrap up by looking ahead to public policy in an election year.

About our guest

As PwC's US Public Policy Leader, Roz Brooks is responsible for ensuring PwC has a voice in important debates at the nexus of business and government and helping the firm successfully execute its business strategy. Roz leads PwC’s engagement with Congress, the White House, regulatory agencies, state and local governments, and organizations including trade associations, think tanks, and NGOs. In addition, she is responsible for the firm’s compliance matters in the areas of lobbying and political contributions. She also serves on PwC’s Global Regulatory & Policy Board, where she collaborates with her international counterparts to set direction of the global network’s strategy on engagement with regulators worldwide.

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].

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.