all star series

Continuing our October all-star series, Tom Barbieri, PwC US Chief Accountant, shares insights on the financial reporting ecosystem and how to stay engaged amid ongoing developments in the landscape.

Tom is joined by Kevin Vaughn, PwC National Office partner, and Ying Compton, PwC managing director, to unpack the financial reporting ecosystem, including the key players, how they work together, and the critical role they play in the capital markets.

In this episode, you’ll hear:

• 4:58 - An overview of the key players in the financial reporting ecosystem and their significance to the investor-driven reporting mission
• 11:28 - How standard setting, application, and enforcement drive the US reporting environment
• 13:22 - The roles and composition of both the SEC and the FASB 
• 17:44 - Interaction between the SEC and FASB and the opportunities for preparers to collaborate with each
• 21:34 - Why preparers should pay attention to PCAOB developments
• 23:35 - A comparison of the rule-making processes across standard-setters and regulators, including the balance between high-quality reporting and its associated costs
• 30:14 - Final advice for preparers on engaging with other players in the ecosystem to enhance reporting quality and efficiency

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

Kevin Vaughn is a partner in PwC’s National Office. Prior to joining PwC, Kevin was senior associate chief accountant in the Office of the Chief Accountant (OCA) at the SEC where he spent almost 20 years focusing on complex financial reporting and technical accounting issues.

Ying Compton is a PwC managing director in the office of the vice chair. Prior to joining PwC,  Ying was a senior accounting and economic advisor in the Office of the Chief Accountant (OCA) at the SEC. She also holds a PhD in accounting from Massachusetts Institute of Technology (MIT). 

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.

Continuing our October all-star series, Tom Barbieri, PwC US Chief Accountant, shares insights on critical accounting and reporting topics.

Tom is joined by Nick Milone, a PwC practice partner with experience advising clients on hedging strategies, to discuss effective hedging strategies for various types of macroeconomic and business risks.

In this episode, you’ll hear:

• 2:47 - An overview of the theory and purpose of hedge accounting
• 6:04 - Initial considerations for applying hedge accounting, including an overview of the effectiveness assessment
• 10:07 - A breakdown of the three most common hedge strategies and why companies might use them
  • 10:21 - Cash flow hedges
  • 12:23 - Fair value hedges
  • 14:33 - Net investment hedges
• 17:49 - Common examples of and questions related to hedging strategies 
• 22:02 - Common pitfalls in applying hedge accounting
• 27:57 - An overview of other hedging strategies, their purpose and how to use them
  • 28:04 - Forecasted debt issuance hedges
  • 35:29 - Foreign currency hedges
  • 39:04 - Hedging strategies for companies with foreign subsidiaries
  • 42:42 - Commodity hedges
• 47:05 - Hedging strategies that do not qualify for hedge accounting
• 50:22 - Final reporting considerations and key reminders for companies using hedge accounting

For more information, read our Derivatives and hedging guide. 

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

Nick Milone is a partner in PwC’s Financial Markets practice, and formerly a practice fellow at the Financial Accounting Standards Board (FASB), with a wealth of experience advising clients on structured transactions, derivatives and hedging activities, transfers of financial assets, securitizations, financings, investments, valuation and other issues. 

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.

From inflation to labor markets to monetary policy, the economy has faced some unexpected headwinds in 2023. This week, host Heather Horn is joined by Chris Benko, PwC Intelligence chief economist, for an economic update to help companies prepare for the end of the year.

In this episode, you’ll hear:

• 2:53 - An overview of the current state of the economy, including the balance between inflation and recession
• 12:58 - A discussion of market factors, including the impacts of federal monetary policy and unemployment, as well as the definition of a “soft landing”
• 25:48 - Instability indicators companies should consider, including:
  • 28:10 - Domestic politics
  • 29:38 - The global economy
  • 32:01 - Geopolitics
• 33:36 - Insights on markets for companies looking to stay ahead of the curve as they head into the final quarter of the calendar year

Want to hear more about the geopolitical and macroeconomic factors impacting the global economy? Tune into the prior podcast in this mini series.

Chris Benko is PwC Intelligence chief economist, providing the firm and its clients with economic analysis and commentary. Chris leads a team of business and sector analysts, economists, and data scientists, leveraging data and analytics to develop points of view and inform strategic decision-making.

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.

Tom Barbieri, PwC’s Chief Accountant, is accelerating the first episode in our October all-star series to share insights on critical accounting and reporting topics.

To kick off the series, Tom is joined by Gary Sardo, Financial Accounting Standards Board (FASB) practice fellow, to discuss FASB’s disaggregation of income statement expenses (DISE) project.

In this episode, you’ll hear:

3:51 - An overview of investor feedback and background on the FASB’s decision to propose enhancing the disclosure requirements for income statement expenses
7:54 - Companies impacted by the proposed standards
10:32 - A breakdown of the proposed disclosure requirements, including:
13:42 - Defining “relevant expense captions,” distinguishing features of each caption and the associated proposed requirements
16:22 - Materiality considerations
17:30 - Investor and preparer feedback on the proposed standard, including practical challenges in the inventory expense breakdown
21:26 - Details on the proposal to further break down inventory and manufacturing expense
24:00 - Operability challenges and data needs that companies should be considering now
24:42 - Details on the proposed disclosure requirements for:
24:44 - “Other” expense categories
29:59 - Selling expenses
32:26 - A summary of the proposed reporting requirements, including timing considerations and how companies can prepare for the transition
37:53 - Next steps on the FASB’s agenda and final advice for companies who seek to get prepared and engaged prior to the end of the comment period

For more on the status and details of the project, refer to the exposure draft on the FASB website. Additionally, tune into PwC’s Q3 2023 quarterly accounting webcast for more on the DISE project.

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

Gary Sardo is a practice fellow at the Financial Accounting Standards Board. Prior to his role at the FASB, Gary was a director at PwC with over 15 years of experience, most recently in PwC’s Deals practice specializing in capital markets and accounting advisory services.

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.

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

Every Tuesday in September, Craig Stronberg, PwC’s Macro Intelligence Leader, is taking over the podcast to share insights on how geopolitical and macroeconomic trends, forces, and movements are likely to impact your business.

To continue the series, Craig is joined by Zain Siddiqui, PwC senior economist, to discuss the current state of the global supply chain and how companies should evaluate their supply chain strategies.

In this episode, you’ll hear a discussion of:

• 2:07 - The current state of the global supply chain
• 5:55 - How companies should think about their supply chain business strategies in light of external factors and risks
• 11:21 - The impact of government policy on economic policy and the incentives for domestic production
• 21:02 - Sector- and geographic-specific insights on supply chain challenges and opportunities, including:
  • 28:55 - The impact of geographical diversification on supply-chain resiliency
  • 30:55 - Expectations for long-term trends in the global supply chain
• 33:54 - Final advice for companies managing supply chain strategies

Want to hear more about the geopolitical and macroeconomic factors impacting the global economy? Tune into a prior podcast in this miniseries.

Craig Stronberg leads the business acumen capability for PwC Intelligence, spearheading the team of analysts that provides macroeconomic, sector, and geopolitical intelligence to key stakeholders. Named as one of the "100 Most Creative People in Business” by Fast Company, Craig had a nearly 20 year career in national security affairs working for and advising numerous agencies and international partners, having been decorated five times. 

Zain Siddiqui is a senior economist for PwC Intelligence with a specialty in macroeconomics and finance. He advises stakeholders and clients on the business implications of emerging macro and geopolitical vulnerabilities, and helps them shape business strategy. His research has appeared in books on international economic policy and macroeconomic journals.

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.

Every Tuesday in September, Craig Stronberg, PwC’s Macro Intelligence Leader, is taking over the podcast to share insights on how geopolitical and macroeconomic trends, forces, and movements are likely to impact your business.

To continue the series, Craig is joined by Zain Siddiqui, PwC Intelligence senior economist, to discuss India’s economy and the risks and opportunities it presents for companies worldwide.

In this episode, you’ll hear a discussion of:

• 4:50 - India’s evolving role as a key player in the global economy
• 10:54 - The driving factors, including population growth and its impact on the labor market, contributing to India’s positioning as a global force 
• 16:54 - Considerations that are key to understanding India’s economy, its influence and challenges, including:
  • 18:15 - Human capital - education, job creation, and equal opportunities in India
  • 27:50 - India’s economic tendencies as a domestic-driven, consumption heavy, services economy
  • 32:12 - India’s business sentiment and power to influence the global economy
  • 37:46 - Sector-specific insights
• 45:17 - Advice for companies navigating the risks and opportunities present in India’s economy

Want to hear more about the geopolitical and macroeconomic factors impacting the global economy? Tune into the prior podcast in this mini series.

Craig Stronberg leads the business acumen capability for PwC Intelligence, spearheading the team of analysts that provides macroeconomic, sector, and geopolitical intelligence to key stakeholders. Named as one of the "100 Most Creative People in Business” by Fast Company, Craig had a nearly 20 year career in national security affairs working for and advising numerous agencies and international partners, having been decorated five times. 

Zain Siddiqui is a senior economist for PwC Intelligence with a specialty in macroeconomics and finance. He advises stakeholders and clients on the business implications of emerging macro and geopolitical vulnerabilities, and helps them shape business strategy. His research has appeared in books on international economic policy and macroeconomic journals.

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.

Every Tuesday in September, Craig Stronberg, PwC’s Macro Intelligence Leader, is taking over the podcast to share insights on how geopolitical and macroeconomic trends, forces, and movements are likely to impact your business.

To kick off the series, Craig provides an overview of the global macroeconomic and geopolitical forces — the true “tectonic” forces — impacting companies in the near and longer term.

In this episode, you’ll hear a discussion of:

• 3:52 - Disequilibrium - what it means, where it stands, and what comes next
• 8:29 - Identifying and understanding the forces impacting the global economy 
• 15:02 - Why it’s important for companies to understand their business assumptions and how those assumptions may be changing
• 20:49 - Assessing major global forces and their impacts on our economy, including:
  • 20:55 - Geopolitical disruption, protectionism, and the impact on free trade
  • 28:39 - Polarization and its impact on risk management and business decisions
  • 38:06 - Balancing between trust and distrust in governments and markets
• 41:57 - How global forces are creating new opportunities for markets and companies

Want to identify how different macroeconomic trends could impact your accounting and reporting? Refer to our interactive tool, Accounting in uncertain economic times. 

Craig Stronberg leads the business acumen capability for PwC Intelligence, spearheading the team of analysts that provides macroeconomic, sector, and geopolitical intelligence to key stakeholders. Named as one of the "100 Most Creative People in Business” by Fast Company, Craig had a nearly 20 year career in national security affairs working for and advising numerous agencies and international partners, having been decorated five times. 

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.

Every Tuesday in August, Bret Dooley, Deputy Chief Accountant in PwC’s National office, is taking over the podcast to share insights on financial instruments hot topics. In each 25-minute episode, Bret will discuss 5 things you need to know.

In this episode, Bret is joined by John Horan, a managing director in PwC’s National office with a focus on financial instruments, to break down what we need to know on earnings per share (EPS).

In this episode, you’ll hear:

• 2:20 - Reminders on the basic EPS calculation, including considerations for participating securities and application of the the two-class method
• 11:45 - The impact of mezzanine equity on the basic EPS calculation
• 15:12 - The impact of new FASB guidance (ASU 2020-06) on EPS calculations for contracts that can be settled in cash or shares 
• 20:01 - Complexities in the dilution calculation for liability-classified warrants and convertible debt with bifurcated conversion options
• 21:48 - Why companies should evaluate repurchased convertible instruments separately

For more information, read chapter 7 of our Financial statement presentation guide. Additionally, check out a prior podcast in this mini series.

John Horan is a managing director in PwC’s National office where he assists clients with complex accounting issues in the areas of foreign currency, liabilities and equity, earnings per share, and derivatives and hedging. John specializes in large capital transactions and initial public offerings.

Bret Dooley is a Deputy Chief Accountant in PwC’s National office who leads teams focused on the financial services sectors and accounting for financial instruments. He has over 25 years of experience in the financial services, banking, and capital markets industries. Bret focuses on emerging financial reporting issues related to financial instruments, developing interpretive guidance, and assisting clients in resolving complex accounting matters.

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.

Every Tuesday in August, Bret Dooley, Deputy Chief Accountant in PwC’s National office, is taking over the podcast to share insights on financial instruments hot topics. In each 25-minute episode, Bret will discuss 5 things you need to know.

In this episode, Bret is joined by Chip Currie, another partner in PwC’s National office with a focus on financial instruments, to discuss convertible instruments and the impacts of updated accounting guidance in this area.

In this episode, you’ll hear discussion of:

• 1:38 - Why companies use convertible instruments and the complex financial decisions accompanying their use
• 6:38 - The impact of new accounting guidance for convertible instruments in ASU 2020-06 
• 9:49 - Key information when accounting for induced conversions
• 12:10 - Down round provisions in equity-linked instruments
• 19:27 - Judgments involved in determining whether to separate the conversion option and account for it as an embedded derivative 

For more information, read chapter 6 of our Financing transactions guide and chapter 3 of our Derivatives and hedging guide. Additionally, check out a prior podcast in this mini series.

Chip Currie is a partner in PwC’s National office with over 25 years of experience assisting companies in resolving complex business and accounting issues. He concentrates on the accounting for financial instruments under both current and emerging standards and works with many of the firm's largest financial services clients and a number of non-financial services clients on treasury-related matters.

Bret Dooley is a Deputy Chief Accountant in PwC’s National office who leads teams focused on the financial services sectors and accounting for financial instruments. He has over 25 years of experience in the financial services, banking, and capital markets industries. Bret focuses on emerging financial reporting issues related to financial instruments, developing interpretive guidance, and assisting clients in resolving complex accounting matters.

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.

Every Tuesday in August, Bret Dooley, Deputy Chief Accountant in PwC’s National office, is taking over the podcast to share insights on financial instruments hot topics. In each 25-minute episode, Bret will discuss 5 things you need to know.

In this episode, Bret shares insights on the current expected credit loss model, or CECL, and why it’s not just for banks. All companies, regardless of industry, need to understand the requirements.

In this episode, you’ll hear:

• 1:50 - A refresher on CECL
• 3:34 - Insights on the impacts of CECL across industries
• 7:03 - A discussion of how to apply CECL to various asset classes, considerations on estimation methodologies, and why companies should seek continuous improvement in the application of CECL
• 9:32 - Key information to consider when preparing CECL disclosures 
• 11:22 - How subsequent events could impact CECL estimates
• 20:43 - An overview of the FASB’s exposure draft that proposes changes to the accounting for purchased credit deteriorated assets

For more information, read chapter 7 of our Loans and investments guide. Additionally, check out the prior podcast in this mini series.

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

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.

Every Tuesday in August, Bret Dooley is taking over the podcast to share insights on financial instruments hot topics. In each episode, Bret will discuss 5 things you need to know in 25 minutes.

To kick off the series, Bret shares insights on accounting for investment securities, a topic of recent headlines. He breaks down the complexities of held-to-maturity and available-for-sale securities, and touches on foreign currency bonds.

In this episode, you’ll hear discussion of:

• 2:05 - Key reminders for identifying and accounting for debt securities
• 6:32 - Accounting for held-to-maturity (HTM) securities and the long-term implications of HTM designation
• 12:30 - Tips on accounting for unrealized losses on available-for-sale (AFS) securities
• 17:18 - An overview of accounting for foreign currency bonds
• 19:25 - Complexities in the application of the measurement alternative model for equity securities 

For more information, read chapters 2, 3, and 8 of our Loans and investments guide. 

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

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.

Every Tuesday in July, Jay Seliber is taking over the podcast to share insights on business combinations, which are often significant events in a company’s life cycle. Jay takes us on a journey through a deal, beginning with the complexities of the overall acquisition accounting model, then diving into some of the more complex areas—identifying the accounting acquirer, accounting for contingent consideration, and reporting with the SEC.

To continue the series, Heather and Jay are joined by Ryan Spencer, a PwC National office partner who specializes in SEC reporting, to break down the SEC filing requirements for business combinations, including the application of significance tests used to determine the reporting requirements.

In this episode, you’ll hear:

• 2:02 - A breakdown of the SEC filing requirements for business combinations
• 7:10 - A discussion of significance tests and how they help to determine filing requirements
• 17:36 - A summary of financial statement requirements, including considerations on timing and the age of financial information
• 23:38 - An overview of the unique guidelines for a company filing (1) a new registration statement, (2) transactional proxy statements, and (3)  reverse-merger information
• 32:30 - A summary of pro forma reporting requirements, including timing considerations
• 43:36 - The distinction between the SEC and US GAAP disclosure requirements
• 47:06 - Final advice for companies navigating the filing requirements for a business combination

For more information, read chapter 17 of our Financial statement presentation guide and the SEC Financial Reporting Manual. Also check out the prior podcast in this miniseries on business combinations. 

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.

Ryan Spencer is a partner at PwC's National office specializing in SEC financial reporting. He has over 20 years of experience serving clients and is a frequent contributor to PwC’s publications and communications.

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.

Every Tuesday in July, Jay Seliber is taking over the podcast to share insights on business combinations, which are often significant events in a company’s life cycle. Jay takes us on a journey through a deal, beginning with the complexities of the overall acquisition accounting model, then diving into some of the more complex areas—identifying the accounting acquirer, accounting for contingent consideration, and reporting with the SEC.

To continue the series, Heather and Jay are joined by Chip Currie, another partner in PwC’s National Office, to share insights on the intersection between contingent consideration and acquisition accounting, as well as the key decision points in the multi-step accounting model.

In this episode, you’ll hear:

• 2:25 - An overview of the accounting framework for contingent consideration arrangements from the buyer’s perspective, including:
  • 7:01 - The criteria for meeting the definition of contingent consideration
  • 12:04 - An assessment of whether the arrangement is part of the purchase price
  • 16:03 - A discussion of common pitfalls in the performing the assessment
• 23:19 - An analysis of the accounting for contingent consideration arrangements classified as compensation expense
• 24:25 - A discussion of the multi-step analysis of contingent consideration arrangements that is not classified as compensation expense, including:
  • 24:38 - Liability-classified contingent consideration and applying the liability versus equity accounting model
  • 29:59 - Equity-classified contingent consideration and applying the derivative accounting model 
• 41:56 - An overview of the impact of contingent consideration on earnings per share and the statement of cash flows 
• 48:40 - Final advice for clients dealing contingent consideration in a business combination

For more information, read chapters 2 and 3 of our Business combinations guide, chapter 5 of our Financing guide, and chapters 6 and 7 of our Financial statement presentation guide. Additionally, check out a prior podcast in this miniseries. 

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.

Chip Currie is a Partner in PwC’s National Office with over 25 years of experience assisting companies in resolving complex business and accounting issues. He concentrates on the accounting for financial instruments under 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.

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

Every Tuesday in July, Jay Seliber is taking over the podcast to share insights on business combinations, which are often significant events in a company’s life cycle. Jay takes us on a journey through a deal, beginning with the complexities of the overall acquisition accounting model, then diving into some of the more complex areas—identifying the accounting acquirer, accounting for contingent consideration, and reporting with the SEC.

To continue the series, Heather and Jay are joined by Matt Sabatini to share insights on the identification of the accounting acquirer, a key judgment that impacts the remaining accounting conclusions in the acquisition model.

In this episode, you’ll hear:

• 1:46 - A discussion of the importance of determining the account acquirer as the starting point, and the downstream implications of that determination
• 3:50 - An overview of the accounting framework from the acquirer’s perspective and the intersection with consolidation standards 
• 6:18 - Insights on performing a control assessment and a discussion of key indicators of control
• 17:30 - Accounting for the newco created as a result of a business combination
• 25:01 - The distinction between the legal acquirer versus accounting acquirer, including the financial reporting implications of that distinction, and the complexities of “reverse mergers”
• 34:40 - Final advice for clients dealing with business combinations

For more information, read chapter 2 of our Business combinations guide. Additionally, check out our prior podcasts on the VIE accounting model and the prior podcast in this miniseries. 

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.

Matt Sabatini is a partner in PwC's National office who helps 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.

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.

Every Tuesday in July, Jay Seliber is taking over the podcast to share insights on business combinations, which are often significant events in a company’s life cycle. Jay takes us on a journey through a deal, beginning with the complexities of the overall acquisition accounting model, then diving into some of the more complex areas— identifying the accounting acquirer, accounting for contingent consideration, and reporting with the SEC. 

To kick off the series, Jay shares insights on the foundations of acquisition accounting, including key areas of judgment in the model.

In this episode, you’ll hear discussion of:

• 1:58 - The importance of understanding acquisition accounting, even in times of low deal volume
• 3:50 - The foundational accounting considerations for business combinations, including the determination of which transactions qualify as business combinations, and the implications on the control assessment
• 8:04 - The acquisition method, including how to account for the various forms of consideration exchanged in a transaction
• 12:40 - The complexities involved in step acquisitions and partial acquisitions as well as their impact on the application of acquisition accounting
• 17:46 - Insights on the measurement of assets and liabilities acquired in a business combination
• 21:24 - The measurement and allocation of goodwill acquired in a business combination, including tips for bookkeeping of goodwill
• 29:43 - Reminders related to measurement period and conforming accounting policies
• 38:17 - Final advice for getting prepared and dealing with a live deal

For more information, read our Business combinations guide and listen to our prior podcast on disclosures required in business combinations. Additionally, refer to our In the loop on the impact of acquiring an asset vs. a business.

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.

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.

Every Tuesday in June, Angela Fergason is taking over the podcast to share the latest in her areas of specialty — including recent trends in revenue, how to consider whether your company is a principal or agent when recognizing revenue, software costs, and restructurings.

To continue the series, Angela shares insights on some accounting implications of workforce restructuring, including the different accounting models available for termination benefits.

In this episode, you’ll hear:

• 1:08 - An overview of the various accounting models applicable to workforce restructuring events
• Insights on accounting for:
  • 3:55 - One-time involuntary benefits, including severance payments
  • 8:54 - Termination benefits under an existing plan
  • 14:50 - Voluntary termination benefits and other benefit combinations 
  • 20:03 - Modifications of stock-based compensation awards, including both vested and unvested awards
  • 28:36 - Extending the exercise period of stock-based compensation awards
• 31:14 - Final advice on accounting for workforce restructuring events, including non-GAAP measures and restructuring charges

For more information on severance payment arrangements and stock-based compensation awards, read Chapter 8 of our Pensions and employee benefits guide. For more information on modifications of stock-based compensation awards, read Chapter 4 of our Stock-based compensation guide. Additionally, check out our prior podcast on non-GAAP measures.

Angela Fergason is a partner and standard setting leader in PwC's National Office who specializes in accounting for revenue and employee compensation arrangements. She also consults on a range of financial reporting issues impacting technology companies. 

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.

Every Tuesday in June, Angela Fergason is taking over the podcast to share the latest in her areas of specialty — including recent trends in revenue, how to consider whether your company is a principal or agent when recognizing revenue, software costs, and restructurings.

To continue the series, Heather Horn and Angela are joined by Mike Coleman to share insights on accounting for software costs and provide an update on the FASB’s project on software costs.

In this episode, you’ll hear:

• 1:38 - Considerations when accounting for software costs across industries, including the impact of digital transformations and the possible impact of new FASB standards in progress
• 6:17 - An overview of current guidance, including the two accounting models for software (externally marketed software and internal use software)
• 10:13 - Accounting considerations from the perspective of the software vendor
• 14:51 - Accounting considerations from the perspective of the software buyer
• 17:03 - An update on the FASB’s project to modernize accounting for software costs
• 25:29 - Final advice to clients when accounting for software costs

For more information on accounting for software costs, read our Software costs guide. Also, to stay updated on the status of the FASB’s project to modernize software costs, refer to the FASB website.

Angela Fergason is a partner and standard setting leader in PwC's National Office who specializes in accounting for revenue and employee compensation arrangements. She also consults on a range of financial reporting issues impacting technology companies. 

Mike Coleman is a partner in PwC's National Office with over 30 years of experience. Mike specializes in accounting for revenue and software arrangements and has served technology clients for much of his career. In addition, Mike has represented the firm on the AICPA Software Task Force.

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.

Every Tuesday in June, Angela Fergason is taking over the podcast to share the latest in her areas of specialty — including recent trends in revenue, how to consider whether your company is a principal or agent when recognizing revenue, software costs, and restructurings.

To continue the series, Heather and Angela are joined by Mike Coleman, a partner in PwC’s National Office, to share insights on the challenges in the principal versus agent analysis.

In this episode, you’ll hear discussion of:

• 1:37 - An overview of the principal versus agent assessment
• 3:52 - Practical examples
• 7:09 - An overview of the two-step assessment of whether the company acts as the principal or agent from the perspective of the intermediary
• 17:22 - An overview of the two-step assessment of whether the company acts as the principal or agent from the perspective of the vendor
• 18:22 - Considerations when accounting for revenue based on the results of the principal versus agent analysis
• 22:35 - Final advice to clients and engagements teams when performing the principal versus agent assessment

For more information, read chapter 10 of our Revenue guide for principal versus agent considerations.

Angela Fergason is a partner and standard setting leader in PwC's National Office who specializes in accounting for revenue and employee compensation arrangements. She also consults on a range of financial reporting issues impacting technology companies. 

Mike Coleman is a partner in PwC's National Office with over 30 years of experience. Mike specializes in accounting for revenue and software arrangements and has served technology clients for much of his career. In addition, Mike has represented the firm on the AICPA Software Task Force.

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.

Every Tuesday in June, Angela Fergason is taking over the podcast to share the latest in her areas of specialty — including recent trends in revenue, how to consider whether your company is a principal or agent when recognizing revenue, software costs, and restructurings.

To kick off the series, Angela shares insights on current trends in the accounting for revenue transactions.

In this episode, you’ll hear discussion of:

• 1:38 - An overview of accounting for revenue
• 4:16 - “Everything as a Service” (XaaS) arrangements and their embedded complexities, including interaction with the lease accounting model
• 12:38 - Revenue contract modifications, including scope reductions
• 17:32 - The non-cash consideration revenue model, including equity payments for both vendors and customers as well as interaction with stock-based compensation guidance
• 23:04 - Considerations when revenue arrangements include significant financing
• 26:05 - SEC comment letter trends and final advice on accounting for revenue

For more information, read our Revenue, Leases and Stock-based compensation guides. Additionally, check out our prior podcasts on the subscription economy, identifying embedded leases, and Revenue: 2022 SEC comment letter trends.

Angela Fergason is a partner and standard setting leader in PwC's National Office who specializes in accounting for revenue and employee compensation arrangements. She also consults on a range of financial reporting issues impacting technology companies. 

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.

Every Tuesday in May, Jennifer Spang is taking over the podcast to share the latest on income tax accounting — recent global and US tax policy developments, standard setting activity, and tax accounting considerations related to common transactions, such as business combinations and spinoffs.

To continue the series, Heather and Jenn are joined by Matt McCann, a partner in PwC’s National Office, to share insights on the practical challenges that arise in the tax accounting for spinoff transactions.

In this episode, you’ll hear discussion of:

• 1:30 - What a spinoff transaction is and the SEC filing requirements, including the preparation of carve-out financial statements
• 7:48 - Considerations related to allocating the consolidated income tax provision to the carved-out entity 
• 18:22 - Other practical tax challenges in carve outs including valuation allowance assessments, uncertain tax positions, and tax sharing agreements 
• 28:30 - The importance of robust disclosures when attributes or assertions are expected to change post spin
• 35:52 - Planning for tax complexities post spin and final advice for companies 

For more information, read our Income taxes and Carve-out financial statements guides. Additionally, check out our prior podcast on taxes in separate company financial statements. 

Jennifer Spang is PwC’s National Office income tax accounting leader, specializing in tax accounting under US GAAP and IFRS. She has over 25 years of experience helping companies in a variety of industries navigate complex tax accounting matters. 

Matthew McCann is a partner in PwC's National Office who provides consultation in the areas of revenue recognition and income taxes. He has over 25 years of experience and previously served as the leader of the Consumer & Industrial Products Sector Assurance Practice in North Texas.

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.