At the intersection of two trending topics, AI and sustainability, there are a myriad of both costs and benefits to consider. Host Heather Horn is joined by Scott Likens, PwC Global Chief AI Engineer, to discuss the environmental impact of AI and the balance between AI's benefits and its environmental footprint. In this episode, they discuss: 3:17 – How AI is impacting sustainability 8:54 – Why AI and sustainability aren’t necessarily opposing forces 17:28 – Practical examples of utilizing AI to...
Oct 24, 2024•41 min
We continue our miniseries on loans and investments with a discussion of the current expected credit losses (CECL) impairment model, applicable to a broad range of financial assets. In this episode, we discuss: 3:42 – A refresher on the CECL model 8:02 – Impact of the current economic environment on credit losses 23:43 – Monitoring and governance of credit losses 26:46 – SEC comment letters and other activity related to CECL 30:49 – FASB developments related to CECL, including purchased financia...
Oct 22, 2024•45 min
The term “ESG” has been used for over two decades, including in this podcast miniseries title. Host Heather Horn sat down with guest Matt Sekol, Sustainability Global Blackbeltand author of ESG Mindset: Business Resilience and Sustainable Growth , to revisit the complexities of ESG and how companies can rethink the concept to not only build better resilience for the long term, but also find value in reporting. In this episode, they discuss: 3:42 – The key messages of ESG Mindset and redefining “...
Oct 17, 2024•51 min
We continue our miniseries on loans and investments with a discussion of the accounting by corporate entities for loan receivables, which can include items such as trade receivables and other receivables with customers, suppliers, employees and more. In this episode, we discuss: 1:43 – The definition of a loan and types of loan arrangements 3:18 – Recognition and measurement of loans 7:40 – Classification and accounting for loans held for sale or held for investment 18:54 – Recording interest in...
Oct 15, 2024•37 min
Impact accounting is the process of attributing monetary value to disparate pools of datapoints across sustainability topics with the intent of creating comparability to drive investment decisions. This week, host Heather Horn is joined by a special guest from the International Foundations of Valuing Impacts (IFVI), CEO and President, Rob Zochowski, to discuss the relatively new concept of impact accounting and how it can complement existing sustainability reporting for business decision-making....
Oct 10, 2024•46 min
We kick off our miniseries on loans and investments with an episode on accounting for debt securities for corporate entities. We discuss key considerations applicable to corporates and share insights on some of the more complex areas. In this episode, we discuss: 5:31 – Identifying the applicable accounting guidance 13:24 – Instruments that qualify as cash equivalents 22:07 – Classification of debt securities and the accounting implications 31:36 – Valuation of debt securities 36:33 – Financial ...
Oct 08, 2024•45 min
Host Heather Horn is joined by Mardi McBrien, Chief of Strategic Affairs & Capacity Building at the IFRS Foundation, and Katharina Bryan, Head of International Sustainability Reporting Policy at Amazon, to highlight the PwC and IFRS Foundation NYC Climate Week event: Sustainability disclosure in practice . Together they break down the event and share highlights, practical perspectives, and takeaways for preparers on their own sustainability reporting journeys. In this episode, they discuss: ...
Oct 03, 2024•40 min
With an unprecedented level of change in recent years, the PCAOB has become a standard setter to watch – not just for audit firms but for companies. The episode brings the latest in PCAOB standard setting developments, including what they mean for preparers. Our guest is Brian Croteau, PwC’s US Chief Auditor, who leads our team that follows all things PCAOB. In this episode, we discuss: 3:35 – The current landscape at the PCAOB 10:07 – Overview of the PCAOB’s standard setting process 15:14 – New...
Oct 01, 2024•53 min
In the second episode of our miniseries on the building blocks of greenhouse gas (GHG) emissions reporting, we discuss how to establish organizational boundaries. Host Heather Horn is joined again by Marcin Olewinski, an Assurance partner, and Kelsey Pizza, a senior manager in PwC’s National Office, who illustrate the importance of including the correct entities, assets, and operations through real world examples. Different frameworks may prescribe different approaches while others provide some ...
Sep 26, 2024•44 min
We continue our miniseries on foreign currency accounting with an episode on foreign currency remeasurement and translation. Foreign currency measurement is the process by which an entity expresses transactions whose terms are denominated in a foreign currency in its functional currency. Foreign currency translation is the process of expressing a foreign entity’s functional currency financial statements in the reporting currency. In this episode, we discuss: 03:09 – An overview of the accounting...
Sep 24, 2024•46 min
This week we introduce a miniseries on the building blocks of greenhouse gas (GHG) emissions reporting. To kick off the miniseries, host Heather Horn is joined by Marcin Olewinski, an Assurance partner, and Kelsey Pizza, a senior manager in PwC’s National Office, to give an overview of the process and zero in on the first step, understanding reporting requirements. They highlight the GHG Protocol's foundational role and its similarities and differences with other standards. In this episode, they...
Sep 19, 2024•34 min
We kick off our miniseries on foreign currency accounting with an episode on determining functional currency, which is the currency of the primary economic environment in which a distinct and separable operation operates. In this episode, we discuss: 03:52 – Identifying distinct and separable operations 19:01 – Determining functional currency 25:45 – Common pitfalls in evaluating functional currency 37:37 – Changes in functional currency 40:19 – Highly inflationary economies For more information...
Sep 17, 2024•48 min
We continue our miniseries on stock-based compensation awards with a focus on 5 important things for private companies to know. This is an area for which the accounting tends to be more complicated for nonpublic companies. In this episode, we discuss: 3:12 – Measurement of liability-classified awards 5:59 – Secondary market transactions 16:39 – Profit sharing arrangements 22:44 – Equity restructurings 31:25 – Recourse and nonrecourse loans For more information, see chapter 6 of our Stock-based c...
Sep 10, 2024•38 min
We kick off our miniseries on stock-based compensation with a focus on 5 important things to know when accounting for modifications to stock-based compensation awards. In this episode, we discuss: 2:40 – How to determine whether a change in terms or conditions should be accounted for as a modification 5:00 – The stock-based compensation modification framework 8:29 – Four types of modifications related to vesting conditions 18:39 – Modifications that change classification 22:15 – Modifications of...
Sep 03, 2024•28 min
We continue our miniseries on software costs. They are accounted for using two different models depending on whether the software is used internally or externally. In this episode, we discuss the internal-use model applicable to software developed or obtained to meet the reporting entities’ internal needs. In this episode, we discuss: 3:24 – The scope of internal-use software 10:29 – The three stages of software development 14:07 – Cloud computing arrangements 17:50 – Practical challenges in app...
Aug 27, 2024•36 min
We kick off our miniseries on software costs. They are accounted for using two different models depending on whether the software is used internally or externally. In this episode we focus on the external use model applicable to software to be sold, leased, or otherwise marketed as a separate product or embedded within a product or process. In this episode, we discuss: 3:20 – How to determine whether the internal use or externally-marketed software models apply 10:08 – An overview of the externa...
Aug 20, 2024•40 min
Named the year of global elections, 2024 will see more than 50 countries with over half of the world’s population exercise their right to vote. On today’s episode, host Heather Horn reunites with Craig Stronberg from PwC Intelligence to discuss the depth of the 2024 elections – not just in the US but worldwide – and the downstream impacts they could have, including what companies need to consider when making business decisions. Hear what Craig has to say companies should be focused on now as the...
Aug 13, 2024•38 min
This episode is your one-stop shop covering the latest reporting and rulemaking developments at the SEC. With almost 40 years of combined experience at the SEC, our guests, National Office partners Kyle Moffatt and Kevin Vaughn, share their insights on all things SEC. In this episode, we discuss: 2:10 – Potential impacts of a change in presidential administration 5:40 – The SEC's rulemaking agenda 7:28 – Recent court actions impacting the SEC 21:10 – Non-GAAP measures 29:00 – Cybersecurity 37:24...
Aug 06, 2024•49 min
There continues to be a significant amount of activity at a high velocity as it relates to the Inflation Reduction Act (IRA). In this episode, host Heather Horn welcomes back Matt Haskins, principal in PwC's Washington National Tax Services group, who focuses on renewable energy transactions, to discuss the latest IRA developments and what is on the horizon in this election year and beyond. Find out where companies should be focusing their efforts now and how to prepare for any changes that may ...
Aug 01, 2024•40 min
We conclude our revenue miniseries with an episode on collaborative arrangements, which has its own guidance (ASC 808, Collaborative Arrangements ) but also often interacts with other guidance, including that on revenue from contracts with customers. In this episode, we discuss: 4:55 – Criteria to meet the definition of a “collaborative arrangement” 16:20 – An overview of the collaborative arrangement accounting model 20:27 – Application of an accounting policy for recognition and presentation 2...
Jul 30, 2024•44 min
This week, host Heather Horn is joined by a special guest from the International Sustainability Standards Board (ISSB). Vice Chair, Sue Lloyd gives us an inside look into the ISSB’s workplan, new projects, and new strategic relationships. She also shares how the ISSB is supporting implementation of the standards. In this episode, they discuss: 4:15 – Insights from the adoption of ISSB standards around the world 9:20 – Variability of sustainability reporting and interoperability guidance 19:08 – ...
Jul 25, 2024•43 min
We continue our revenue podcast miniseries discussing contract modifications. Contract modifications are accounted for as either a separate contract or as part of the existing contract, depending on the nature of the modification. In this episode, we discuss: 4:47 – An overview of contract modifications 5:57 – Modifications that are accounted for as separate contracts 6:54 – Modifications that are accounted for prospectively 10:08 – Modifications that result in cumulative catch-up adjustments 11...
Jul 23, 2024•32 min
This episode provides an overview of the new standard from the International Accounting Standards Board, the IASB. IFRS 18 is the new standard on presentation and disclosure in financial statements, with a focus on updates to the income statement. This is a significant development in IFRS financial reporting - even companies not reporting under IFRS will want to be aware of these updates. In this episode, we discuss: 1:10 – An overview of the new standard 5:00 – Aggregation and disaggregation (i...
Jul 18, 2024•39 min
Our revenue miniseries continues with identifying the contract, the first step in the five-step model in the revenue standard. It's important to get this step right to appropriately apply the model for recognizing revenue. In this episode, we discuss: 4:10 – The five criteria to have a contract with a customer under the revenue standard 8:23 – The impact of master services agreements and enforceable rights 16:03 – Assessing collectibility of the consideration in the contract 27:08 – Determining ...
Jul 16, 2024•41 min
Host Heather Horn welcomes back Will Evison, a director in PwC UK’s Global Sustainability, Climate, and Nature Strategy practice, to provide an update on the work of PwC’s Centre for Nature Positive Business and discuss the relationship between nature positive business strategy and reporting. In this episode, they discuss: 2:18 – The purpose and progress of PwC’s Centre for Nature Positive Business 8:57 – The impact of the Corporate Sustainability Reporting Directive adoption on company strategi...
Jul 11, 2024•34 min
This episode begins a podcast miniseries on revenue topics with a discussion of principal versus agent (PvA) or “gross versus net” revenue. In other words, the principal in a transaction records revenue on a gross basis and the agent records revenue net. The PvA analysis can be subjective but it's important to get it right as it can materially impact a key line item in the income statement, revenue from contracts with customers. In this episode, we discuss: 2:00 – An overview of the PvA model an...
Jul 09, 2024•36 min
This episode dives into valuation relating to goodwill impairments, long-lived asset impairments, and business combinations. We discuss: 1:15 – The meaning of “fair value” in financial reporting 5:55 – Valuation considerations and insights related 6:20 – Goodwill impairments 34:30 – Impairments of long-lived assets 42:53 – Business combinations For more information, read chapter 7 of our Fair value guide, chapters 2 and 9 of our Business combinations guide, and chapter 5 our Property, plant, equ...
Jul 02, 2024•52 min
In June 2024, PwC released its 2024 Global Corporate Sustainability Reporting Directive (CSRD) survey , which covers a variety of topics on the current state of companies’ CSRD implementation. In this week’s podcast, host Heather Horn welcomes back Nadja Picard, PwC’s Global Reporting Leader, to dive into the results of the survey conducted in April 2024, including company readiness, data availability, and the use of technology in reporting. In this episode, we discuss: 01:55 - Purpose of the 20...
Jun 27, 2024•43 min
This episode covers the latest developments in the world of crypto assets from the current landscape to the regulatory environment to the accounting. In this episode, we discuss: 4:13 – An overview of the market 8:42 – US legislative activity related to SEC Staff Accounting Bulletin 121 14:30 – Use cases for crypto assets and related technology 19:15 – Accounting for crypto assets and recent guidance from the FASB 31:15 – Key disclosure requirements 36:07 – SEC guidance related to lending arrang...
Jun 25, 2024•47 min
We conclude our miniseries on consolidation accounting with an episode on identifying the primary beneficiary of a VIE, the reporting entity required to consolidate the VIE. In this episode, we discuss: 3:15 – Determining which entity should consolidate the VIE 6:07 – The primary beneficiary power criterion 17:35 – The primary beneficiary economics criterion 21:17 – Related party impacts on the VIE model 26:00 – Ongoing reassessment of the primary beneficiary For more information on this topic, ...
Jun 18, 2024•31 min
