PwC's accounting podcast - TopPodcast.com

Latest Episodes:

Assessing contingencies today Apr 04, 2023

Show notes

Every Tuesday in April, Pat Durbin is taking over the podcast sharing insights and going back to basics on some critical accounting areas, including contingent liabilities, subsequent events, and inventory.

To kick off the series, Heather Horn and Pat are joined by Tom Barbieri, our US Chief Accountant, to bring you the latest on one of the oldest and most foundational standards, FAS 5, which is now Topic 450, Contingencies.

In this episode, you’ll hear discussion of:

6:03 - An overview of the accounting framework and key judgments in assessing the likelihood of loss
10:21 - What to consider when measuring a loss contingency
16:06 - Recognition and presentation of insurance recoveries
18:49 - When gain contingencies may be recognized
27:04 - What companies should consider in disclosing contingencies
32:00 - Final advice when accounting for and disclosing contingencies

For more information, read the Contingencies chapter of our Financial statement presentation guide.

Pat Durbin is a Deputy Chief Accountant in PwC’s National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.

Tom Barbieri is the Chief Accountant in the Firm’s National Office and has over 30 years of experience advising large financial services and multinational corporations on complex accounting issues. He leads the Accounting & SEC Services Group, which is focused on supporting our clients and engagement teams in navigating complex technical accounting and financial reporting matters. Tom is also a member of the Financial Accounting Standards Advisory Council.

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. With over 30 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 us_podcast@pwc.com.

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Fixed asset toolkit: Assets held for sale Oct 25, 2022

Show notes

In our Toolkit podcast series, we are taking a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering fixed assets – from acquisitions and capitalization to disposals.

In this episode, Heather Horn was joined by Reto Micheluzzi from PwC’s National Office to discuss asset disposals by sale and key judgments in assessing the held-for-sale criteria.

In this episode, you will hear:

1:09 - An overview of the six criteria that need to be met for held-for-sale classification
4:24 - Key judgments involved in assessing the criteria and potential exceptions to the rule
12:28 - Measurement complexities including the order of impairment testing
16:49 - Triggers that cause an asset to no longer be considered as held for sale
19:49 - Final reminder when classifying assets as held for sale

Want to learn more? Read our chapter on assets held for sale in our PP&E and other assets guide.

Reto Micheluzzi is a partner in PwC’s National Office with over 25 years of experience solving companies’ most complex accounting and financial reporting issues, creating a path through the dense regulatory framework and bodies of rules. He has a deep understanding of the demands associated with today’s accounting complexities and potential SEC reporting issues, primarily related to M&A, consolidation, reorganizations, and income taxes.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

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Fixed asset toolkit: What can I capitalize? Oct 18, 2022

Show notes

Jay Seliber, PwC National Office partner, is back in the guest seat to share insights on the capitalization of assets with our host, Heather Horn.

In this episode, you will hear about:

4:39 - The first three capitalization stages: (1) preliminary exploration, (2) pre-acquisition, and (3) construction, and the types of costs that can be capitalized in each
13:42 - Capitalized interest - key considerations on timing and capitalization rate
20:10 - The fourth stage of capitalization: placing an asset in-service and the accounting for related costs
22:59 - The accounting for major maintenance
29:30 - Asset depreciation methods and key judgments in reassessing useful life
35:25 - Final reminders when capitalizing and depreciating fixed assets

Want to learn more? Listen to our previous podcast in this series on asset acquisitions andread about the capitalization of costs in our PP&E and other assets guide. Aircraft major maintenance is discussed in the AICPA’s Airlines guide.

Jay Seliber is a partner in PwC’s National Office. He leverages over 30 years of experience to help clients with their most complex accounting matters, particularly in the areas of mergers and acquisitions, revenue recognition, stock compensation, earnings per share, employee benefits, restructurings, impairments, and financing transactions. Jay is presently PwC's representative on the FASB's Emerging Issues Task Force.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

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Fixed asset toolkit: Asset acquisitions Oct 04, 2022

Show notes

In this episode, Heather Horn was joined by Beth Paul from PwC’s National Office to discuss the accounting guidance for asset acquisitions, including distinguishing an acquisition of an asset from the acquisition of a business, along with complexities that may be faced when accounting for asset acquisitions.

In this episode, you will hear:

1:24 - An overview of the asset acquisition and business combination models
4:17 - How to use the screen test to identify asset acquisitions
9:21 - How to record asset acquisitions, and related transactions recognized separately
18:03 - Complexities faced by the buyer, including contingent consideration
24:06 - Key reminders for a seller when accounting for the disposal of an asset
26:01 - Final advice for those beginning the asset acquisition process

Want to learn more? Listen to our podcast discussing the complexities faced in business combinations and asset acquisitions, andread our chapters on asset acquisitions in our PP&E and other assets guide and how to identify a business using the screen test in our Business combinations guide.

Beth Paul is a Deputy Chief Accountant in PwC’s National Office responsible for a team of consultants that specialize in business combinations and related areas, such as consolidations, disposals, impairments, and segment reporting. Prior to this role, Beth was the Strategic Thought Leader in PwC’s National office, working closely with firm leadership to determine PwC’s position on emerging trends in auditing, accounting, and financial reporting matters.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

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Impairment toolkit: Financial instruments Sep 13, 2022

Show notes

In our Toolkit podcast series, we take a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering impairments – a complex topic with a variety of accounting and reporting considerations.

In this episode, Heather Horn was joined by Bret Dooley, a partner in the National Office, and Shannon Detling, a partner in the Financial Markets practice, to discuss key considerations when working through the impairment accounting framework for financial instruments.

In this episode, you will hear them discuss:

0:38 - An overview of the impairment model for equity and available-for-sale debt securities
6:07 - How current market conditions are impacting impairment assessments
11:15 - Highlights of the current expected credit losses (CECL) model for amortized cost assets
17:12 - Effect of macroeconomic trends when determining credit losses under CECL
29:03 - Consideration of risks and relevant controls in the credit loss estimation process
33:16 - Credit outlook for the future based on current trends
38:12 - Key reminders for companies thinking through the impairment model for financial instruments

Want to learn more? Refer to the first episode in our impairment toolkit series on inventory and other current assets, along with previous podcasts on impairment accounting, including accounting for goodwill and other impairments and answers to your impairment valuation questions. Stay tuned for more insightful episodes in the coming weeks.

Bret Dooley is a Deputy Chief Accountant in PwC’s National Office and the financial instruments accounting leader. He has over 25 years of experience specializing in the financial services, banking, and capital markets industries. Bret focuses on emerging financial reporting issues relating to financial instruments, developing interpretive guidance, and assisting clients in resolving complex accounting matters.

Shannon Detling is a Partner within PwC’s Financial Markets group, specializing in financial instruments, financial risk management, and financing transactions. He has extensive knowledge of capital markets, changing regulation and policy, and evolving market conditions. Shannon advises clients on how to achieve their objectives and assists them in execution from strategy through to operations, valuation, and reporting, including design, implementation, and integration of systems, processes, and controls.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

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Impairment toolkit: Inventory and other current assets Sep 06, 2022

Show notes

In this episode, Heather Horn was joined by PwC partner Pat Durbin to discuss key considerations when working through the impairment accounting framework, including a focus on impairment considerations for inventory and other current assets.

In this episode, you will hear them discuss:

1:05 - An overview of current macroeconomic factors that contribute to the impairment of assets
5:32 - An introduction to the impairment framework
12:01 - Impairment triggers for non-financial assets, including examples seen in practice
22:38 - Sector-specific considerations to keep in mind
25:10 - The inventory impairment model
31:53 - Impairment accounting for other current assets
38:43 - Key reminders as companies think through the impairment model

Want to learn more? Refer to our previous podcasts on impairment accounting, including accounting for goodwill and other impairments and answers to your impairment valuation questions. Stay tuned for more insightful episodes in the coming weeks.

Pat Durbin is a Deputy Chief Accountant, leading the revenue and liabilities division in PwC’s National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

Compensation toolkit: Impact of M&A activity on awards Aug 30, 2022

Show notes

In our Toolkit podcast series, we take a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering stock-based compensation – a complex subject with a variety of accounting and reporting considerations.

In this episode, Heather Horn was joined by PwC partners Gina Klein and Jay Seliber to discuss the complexities of stock-based compensation accounting arising from merger and acquisition activity.

In this episode, you will hear them discuss:

1:49 - Key business issues associated with stock-based awards in a transaction
6:14 - Accounting considerations for awards from the sale of a business
11:03 - Modifying awards in response to a planned change in control
20:36 - Considerations for vesting conditions tied to the closing of a transaction
24:05 - Transactions where the buyer replaces the seller’s awards
29:24 - Other common examples of award structuring as part of M&A activity
40:25 - Key points when accounting for stock-based awards during transactions

Want to learn more? Refer to previous episodes in our Compensation toolkit series on challenges for private company awards, making sense of stock award modifications, equity or liability classification, and unraveling complex vesting conditions. Also refer to our Stock-based compensation guide for more helpful information.

Gina Klein is a partner leading PwC’s HR Accounting Advisory practice in Workforce Transformation where she works with companies to address the financial reporting, design, and operational issues associated with employee compensation, including stock compensation, pension plans, and other employee benefit arrangements. Gina has also spent time in PwC’s National Office, advising clients on complex accounting matters related to employee compensation under both IFRS and US GAAP.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

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Compensation toolkit: Challenges for private company awards Aug 23, 2022

Show notes

In our Toolkit podcast series, we take a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering stock-based compensation – a complex subject with a variety of accounting and reporting considerations.

In this episode, Heather Horn was joined by PwC National Office partners Jay Seliber and Ken Stoler to discuss private company-specific accounting considerations for stock compensation.

In this episode, you will hear them discuss:

1:30 - Key differences between public and private companies when accounting for equity-classified stock awards
9:03 - Private company accounting considerations for liability-classified stock awards
13:38 - An overview of profits interest awards commonly seen at private companies
21:20 - Equity restructurings and key points to keep in mind
33:08 - Accounting for loans given to employees to purchase stock
50:18 - Where to find more information on stock compensation for private companies

Want to learn more? Refer to previous episodes in our Compensation toolkit series on making sense of stock award modifications, equity or liability classification and unraveling complex vesting conditions. Also refer to our Stock-based compensationguide for more helpful information.

Ken Stoler is a partner in PwC’s National Office with over 25 years of experience. Ken specializes in financial reporting and plan design issues related to equity compensation arrangements, retirement and healthcare plans, and other benefits, helping companies navigate their employee compensation issues during an IPO, spin off, acquisition, or other major transaction or event.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

Compensation toolkit: Making sense of stock award modifications Aug 16, 2022

Show notes

In our Toolkit podcast series, we take a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering stock-based compensation – a complex subject with a variety of accounting and reporting considerations.

In this episode, Heather Horn was joined by PwC National Office partners Jay Seliber and Ken Stoler to discuss a number of scenarios and accounting considerations related to stock-based compensation award modifications.

In this episode, you will hear them discuss:

1:22 - An overview of stock option modifications
12:20 - Four types of modifications to awards with vesting conditions
29:22 - How to think through changes to the classification of an award
37:34 - Accounting for changes to performance conditions
45:52 - Working through changes to market conditions
53:22 - Final advice for companies dealing with stock option modifications

Want to learn more? Refer to previous episodes in our Compensation toolkit series on equity or liability classification and unraveling complex vesting conditions, along with earlier podcasts on stock-based compensation including back to basics and presentation and disclosure. See also our Stock-based compensationguide. Stay tuned for more insightful episodes in the coming weeks.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

Compensation toolkit: Classifying awards as equity or liability Aug 09, 2022

Show notes

In our Toolkit podcast series, we take a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering stock-based compensation – a complex subject with a variety of accounting and reporting considerations.

In this episode, Heather Horn was joined by PwC National Office subject matter specialists Jay Seliber and Nicole Berman to discuss the challenging topic of classifying stock option awards as equity or a liability.

In this episode, you will hear them discuss:

1:32 - An overview of equity and liability classification of stock options and their key differences
5:26 - Common examples of exceptions to the general classification rules
16:31 - Accounting for awards with redemption features
30:30 - How to think about awards with put or call features
36:56 - Accounting for awards with repurchase features
43:27 - Final advice for dealing with equity and liability classification of stock options

Want to learn more? Refer to the first episode in our compensation toolkit series on unraveling complex vesting conditions, along with earlier podcasts on stock-based compensation podcasts including back to basics, award modifications and presentation and disclosure. For more on stock-based compensation, refer to our Stock-based compensationguide. Stay tuned for more insightful episodes in the coming weeks.

Nicole Berman is a Director in PwC's National Office. She advises clients on the 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.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

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