In this podcast, host Heather Horn sits down with Emily Kirsch, a director in PwC's sustainability practice, to discuss how companies are approaching the Corporate Sustainability Reporting Directive (CSRD) implementation process. The clock is ticking as companies navigate the various phases of the process, including scoping, the double materiality assessment, the gap assessment, and remediation. In this episode, we discuss: 2:08 – CSRD implementation process overview and where companies are in t...
Jun 13, 2024•38 min
We continue our miniseries on consolidation accounting and dive into the evaluation of variable interests and the characteristics of a variable interest entity (VIE). In this episode, we discuss: 1:24 – An overview of the VIE model 3:30 – Determining whether there is a variable interest 11:25 – Identifying “at-risk” equity 15:28 – Evaluating whether an entity is a VIE by assessing the following characteristics exist: 16:00 – Insufficient equity investment at risk 24:27 – Equity lacks decision ma...
Jun 11, 2024•49 min
In this episode, Heather sits down with Marie Hache, PwC Sustainability partner, to discuss the practical challenges companies will face in implementing new mandatory sustainability reporting requirements. They cover leading practices including data quality considerations and getting ready for assurance. In this episode, we discuss: 1:55 - Marie's background in sustainability and her work with companies on implementing new rules and standards 2:29 - How companies are preparing for upcoming susta...
Jun 06, 2024•38 min
We kick off our miniseries on consolidation accounting with an overview of the consolidation models and lay the foundation to go deeper into the variable interest entity model in the next two episodes. In this episode, we discuss: 02:59 - Background on the two consolidation models 12:54 - The overall consolidation framework 14:20 - The variable interest entity model 20:25 - The voting interest entity model 23:13 - Consolidation scope exceptions 28:13 - VIE model scope exceptions For more informa...
Jun 04, 2024•41 min
In this podcast, host Heather Horn sits down with Katie Woods, a senior director in PwC's Global Corporate Reporting Services group, to discuss the recent activities of the International Sustainability Standards Board (ISSB). They discuss the standards issued by the ISSB to date, recent decisions reached by the board regarding future standard setting activities, updates on jurisdictional activity, and more. In this episode, we discuss: 2:16 - Refresher on the issued IFRS® Sustainability Disclosu...
May 30, 2024•29 min
We wrap up our miniseries on accounting for financing transactions with a focus on the accounting for equity-linked instruments. In this episode, we discuss: 2:03 - Why companies issue equity-linked instruments 7:23 - Determining whether an instrument is freestanding or embedded 13:13 - Determining whether an instrument is indexed to the entity’s own stock 17:23 - Exercise contingencies 19:50 - Settlement adjustments 32:36 - Convertible debt instruments 39:51 - Equity or liability classification...
May 28, 2024•54 min
With the finalization of the SEC’s climate disclosure rules and subsequent stay, along with other developments in the sustainability reporting landscape, the pace of change can seem dizzying. In this podcast, host Heather Horn sits down with Kyle Moffat, PwC National Office partner, and Casey Herman, PwC Sustainability partner, to take stock of the landscape and consider what companies can and should be doing now to navigate the uncertainty and prepare for future compliance. In this episode, we ...
May 23, 2024•28 min
Next up in our miniseries on accounting for financing transactions is mezzanine equity. When an instrument is presented as mezzanine equity, it is not permanent equity or a liability. We explain what that means and provide an overview of how to account for it as well as the financial statement impacts. In this episode, we discuss: 1:56 - Background and the associated SEC guidance on mezzanine equity 3:52 - When mezzanine equity presentation is appropriate 27:20 - Measurement 36:20 - Extinguishme...
May 21, 2024•42 min
While the Inflation Reduction Act (IRA) was enacted into law in 2022, the Department of the Treasury continues to provide guidance to taxpayers on how to utilize the provisions of the law. Such guidance has been issued with increasing volume in recent months. In this episode, host Heather Horn sits down with Matt Haskins, principal in PwC's Washington National Tax Services office who focuses on renewable energy transactions, to discuss the latest IRA guidance and the implications for businesses....
May 16, 2024•53 min
We continue our miniseries on accounting for financing transactions with a focus on preferred shares. In this episode we provide an overview and walk through the key judgments in accounting for different types of preferred stock. In this episode, we discuss: 2:01 - An overview of preferred stock, common features, and reasons companies may issue it over other forms of financing 9:40 - The accounting model for preferred stock 14:30 - Classification, recognition, and measurement of preferred stock ...
May 14, 2024•44 min
The concept of a circular economy emphasizes reducing, reusing, repairing, and recycling to minimize waste and maximize resource use in the context of a planet with finite resources. And as you’ll hear in this episode, circularity is increasingly becoming a business issue, both a challenge and opportunity, that interacts with multiple sustainability topics. This week, Heather Horn is joined by Tom Beagent, a partner in PwC UK’s Global Sustainability and Climate Change practice, to discuss the ci...
May 09, 2024•38 min
We kick off our miniseries on accounting for financing transactions with a focus on share repurchases. We provide an overview of the different methods and reasons companies may repurchase their own shares as well as the accounting implications. Spoiler alert – the type of arrangement really matters as it dictates the accounting. In this episode, we discuss: 3:38 – An overview of the different methods and reasons companies repurchase shares 11:43 – Accounting implications depending on the method ...
May 07, 2024•38 min
While the SEC has stayed its climate disclosure rule for now, our team is still fielding many questions as preparers work toward complying with global sustainability reporting regulations. In this episode, host Heather Horn sits down with PwC National Office partners Kevin Vaughn, Diana Stoltzfus, and Valerie Wieman to break down some frequently asked questions on the SEC climate-related disclosures rules. In this episode, we discuss: 2:05 - The implications of the SEC staying the new climate di...
May 02, 2024•37 min
This episode provides an overview of new FASB income tax guidance requiring disaggregated information about a reporting entity’s effective tax rate reconciliation as well as income taxes paid. The FASB’s updates are intended to benefit investors by providing more detailed income tax disclosures that may be useful in making capital allocation decisions. In this episode, we discuss: 0:20 - Background on and an overview of the new guidance 6:50 - Disaggregated rate reconciliation disclosures 26:16 ...
Apr 30, 2024•42 min
Companies subject to multiple sustainability reporting regulations are sorting through how best to meet each framework’s requirements in an effective and efficient manner. In this episode, host Heather Horn sits down with Valerie Wieman, PwC National Office Partner, to discuss the concepts of interoperability and equivalence across global sustainability reporting frameworks as well as the importance of a data-driven assessment. In this episode, we discuss: 2:31 - Defining the concepts of interop...
Apr 25, 2024•38 min
The final episode in our lease accounting miniseries focuses on embedded leases. Although it may not be explicitly stated, your contract may contain a lease that needs to be accounted for. We cover some of the key considerations and common difficulties. In this episode, we discuss: 1:35 - Embedded leases, including examples 7:43 - The model used to identify an embedded lease 08:56 - Identified asset considerations 16:52 - Control considerations 30:18 - Identification of lease versus non-lease co...
Apr 23, 2024•37 min
A critical step in getting ready for new sustainability reporting requirements is building a comprehensive governance framework. In this episode, host Heather Horn sits down with Stephen Parker and Matt DiGuiseppe of PwC’s Governance Insights Center to discuss the new regulatory environment and what it means for board members looking to discharge their oversight responsibilities effectively and management looking to get the board ready. In this episode, we discuss: 2:21 - Reactions to new sustai...
Apr 18, 2024•47 min
In this next episode in our miniseries on lease accounting, we focus on lessee accounting for real estate leases. From lease incentives to build-to-suit arrangements and more, we cover some of the key areas that lessees should consider in accounting for real estate leases. In this episode, we discuss: 03:25 - Lease incentives 08:23 - Distinguishing between lessee and lessor assets 11:28 - Accounting for lessee assets 13:50 - Accounting for lessor assets 17:20 - Determination of the lease commenc...
Apr 16, 2024•35 min
While the changing global sustainability reporting landscape may pose challenges for preparers, there continue to be opportunities for companies in every industry to take a holistic approach to disclosure – whether mandatory or voluntary. In this episode, host Heather Horn sits down with Marc Siegel, PwC National Office partner, for a discussion of the key focus areas and action steps for C-suite executives as they ready their companies for the future of global sustainability reporting. In this ...
Apr 11, 2024•43 min
We continue our miniseries on lease accounting. In this episode, we discuss “day 2” lease accounting, focusing on lease remeasurements, subleasing, and lease impairments. In this episode, you’ll hear a discussion of: 01:18 - Events requiring remeasurement 02:17 - Full lease remeasurements 06:19 - Partial lease remeasurements 7:47 - Lease term and purchase option remeasurements 13:44 - Lease modification remeasurements 21:34 - Subleasing arrangements 25:58 - A refresher on ROU asset impairments F...
Apr 09, 2024•36 min
The International Sustainability Standards Board (ISSB) under the IFRS Foundation last year released IFRS S1 and IFRS S2, representing a step toward the organization’s goal of achieving a comprehensive global baseline of sustainability disclosures. But implementing such a global baseline effectively goes beyond simply setting standards – it requires a new set of capabilities, infrastructure, knowledge, and talent in economies around the world. New sustainability reporting requirements in jurisdi...
Apr 04, 2024•39 min
This first episode in a miniseries on lease accounting focuses on lease classification. We provide an overview of the differences between finance and operating leases and discuss the criteria for classifying leases. In this episode, you’ll hear: 3:30 - An overview of the key differences between finance and operating leases, including expense recognition and cash flow classification 5:15 - A discussion of how to determine if a lease should be classified as finance or operating including: 6:35 - L...
Apr 02, 2024•48 min
Companies around the world are now facing the difficult task of operationalizing multiple sustainability reporting regulations, and doing so within an unprecedented timeline. How are they managing the pressures? In this episode, host Heather Horn sat down with Alan McGill, PwC UK’s Sustainability Reporting, Measurements, and Assurance Leader, to illuminate some of the ways that companies are most effectively navigating the current regulatory landscape. In this episode, we discuss: 2:45 - The com...
Mar 28, 2024•46 min
We wrap up our miniseries exploring accounting for property, plant, and equipment with a discussion of asset acquisitions. In this episode Host Heather Horn is joined by PwC National Office partners Matt Sabatini and Alexander Martin who team up to share their knowledge and insights on this topic. In this episode, you’ll hear: 04:41 – A discussion of how to determine whether a transaction is an asset acquisition or a business combination 24:26 – An explanation of the asset acquisition accounting...
Mar 26, 2024•1 hr
The SEC’s new climate-related disclosures rules include new required disclosures on greenhouse gas (GHG) emissions reporting and assurance will be required. In this episode, host Heather Horn sits down with Marcin Olewinski, a Trust Solutions partner, to unpack the key GHG emissions reporting requirements in the SEC’s new rules and to share insights for companies navigating the intersection among regulatory reporting requirements globally. In this episode, you’ll hear: 2:20 - An overview of GHG ...
Mar 21, 2024•41 min
We continue our miniseries exploring accounting for property, plant, and equipment. In this second episode we discuss the treatment of long-lived assets that are held for sale, from impairment to accounting for the sale of non-financial assets. Host Heather Horn is once again joined by Beth Paul, Deputy Chief Accountant in PwC’s National Office, to walk through specific considerations and complexities on this topic. In this episode, you’ll hear: 00:22 – An overview of the impairment model for lo...
Mar 19, 2024•27 min
Got property, plant, and equipment? We’ve got you covered with a miniseries that explores the key judgments and complexities on the topic. We kick off with the impairment of long-lived assets that are held and used. Host Heather Horn is joined by Beth Paul, Deputy Chief Accountant in PwC’s National Office, to break down what is important. In this episode, you’ll hear: 00:28 - An overview of long-lived asset impairments and how asset classes are relevant 03:17 - A refresher on how to identify ass...
Mar 14, 2024•30 min
In this episode, host Heather Horn sits down with Kyle Moffatt, PwC’s Professional Practice leader, and PwC National Office partners Kevin Vaughn and Valerie Wieman to break down the much-anticipated SEC climate-related disclosures rules. For more information on the SEC climate-related disclosure rules, refer to our In brief publication . Note: On March 15, 2024, the US Court of Appeals for the Fifth Circuit temporarily stayed the rules. Next steps, including the timing and location of a potenti...
Mar 12, 2024•52 min
The GHG Protocol has been one of the most widely used sustainability reporting frameworks for companies reporting GHG emissions information. With the evolution of the sustainability reporting landscape, including the adoption of regulatory sustainability reporting frameworks both in the United States and globally, the criticality of GHG emissions information and the GHG Protocol is reinforced by its incorporation in the primary sustainability reporting frameworks. In this episode, host Heather H...
Mar 07, 2024•40 min
We continue our podcast series focused on financial statement presentation. In this episode, host Heather Horn sits down with Bret Dooley, Deputy Chief Accountant in PwC’s National Office leading our financial instruments team, for a refresher on restricted cash – a focus area due to its impact on liquidity and the recent statement from the SEC Chief Accountant on the cash flow statement. Together, they break down the judgments in identifying and presenting restricted cash. In this episode, you’...
Mar 05, 2024•36 min
