Pwc's Cfodirect Podcast

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 PCAOB10:07 – Overview of the PCAOB’s standard setting process15:14 – Newly adopted PCAOB standards related to: 15:44 – Other auditors16:26 – Confirmations18:50 – General responsibilities of the auditor in conducting an audit (AS 1000)19:54 – Technology-assisted analysis of information in electronic form28:53 – Quality control35:12 – Non-compliance with laws and regulations (NOCLAR)39:17 – Other recent PCAOB proposals45:49 – What's on the horizon for PCAOB standard setting For more information on thes

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 flexibility so it is key to understand your reporting requirements (as discussed in the first episode in this miniseries, Talking GHG: Reporting requirements for greenhouse gas emissions). We’ll highlight different approaches and the impacts (sometimes more significant than one would expect) that an organizational boundary can have on reporting.This episode discusses:2:48 – What it means to establish organizational boundaries 4:33

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.PwC provides a summary of the latest accounting, financial reporting, and regulatory updates to support your quarterly reporting.The adoption of the new segment reporting guidance is just around the corner for many public companies. As we approach year end, we begin this edition of The quarter close by providing timely reminders for those preparing to adopt that guidance. We also take a closer look at annual goodwill impairment assessments, which companies often elect to perform this time of year. In regulatory developments, we provide the latest updates on sustainability reporting and highlight new chapters in our global Sustainability reporting guide, a one-stop shop for finance and sustainability teams as they comply with the reporting frameworks expected to have the broadest impact globally. We also summarize recent SEC staff guidance on the SEC’s new cybersecurity incident reporting requirements.Expect significant a

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 for foreign currency remeasurement and translation05:56 – Measurement of foreign currency transactions09:56 – Exchange rate considerations22:26 – Translating financial statement of foreign entities 29:00 – Releasing cumulative translation adjustments (CTA)For more information see chapters 4 and 5 of our Foreign currency guide. Also, check out our other episode in this miniseries, Foreign currency accounting – Determining function

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 discuss:02:22 – Background on the building blocks of GHG emissions reporting04:30 – The history of the GHG Protocol and how it’s used today19:16 – How the GHG Protocol interacts with other frameworks, including the European Sustainability Reporting Standards and IFRS® Sustainability Disclosure Standards 31:08 – Advice for companies for understanding GHG reporting requirements and interoperabilityFor more information on GHG em

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 operations19:01 – Determining functional currency25:45 – Common pitfalls in evaluating functional currency 37:37 – Changes in functional currency40:19 – Highly inflationary economiesFor more information, see chapter 3 of our Foreign currency guide. Additionally, follow this podcast on your favorite podcast app for more episodes.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 reportin

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 awards5:59 – Secondary market transactions16:39 – Profit sharing arrangements22:44 – Equity restructurings31:25 – Recourse and nonrecourse loansFor more information, see chapter 6 of our Stock-based compensation guide. Also, check out our other episode in this miniseries, Stock-based compensation - 5 things to know about modifications. Additionally, follow this podcast on your favorite podcast app for more episodes.Ken Stoler is a partner in PwC’s National Office who specializes in financial reporting and plan design issues related to equity compensation arrangements, retirement and healthcare plans, and other benefits. He has helpe

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 modification5:00 – The stock-based compensation modification framework8:29 – Four types of modifications related to vesting conditions18:39 – Modifications that change classification22:15 – Modifications of performance conditionsFor more information, see chapter 4 of our Stock-based compensation guide. Additionally, follow this podcast on your favorite podcast app for more episodes.Ken Stoler is a partner in PwC’s National Office who specializes in financial reporting and plan design issues related to equity compensation arrangements, retirement and healthcare plans, and other benefits. He has helped companies navigate their employee comp

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 software10:29 – The three stages of software development14:07 – Cloud computing arrangements17:50 – Practical challenges in applying this model25:05 – An overview and update on the FASB's current software costs projectFor more information, see chapter 3 of our Software costs guide. Also, check out our other episode in this miniseries, Accounting for the cost of externally marketed software. Additionally, follow this podcast on your favorite podcast app for more episodes.Mike Coleman is a partner in PwC's National Office who specializes in accounting

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 externally marketed software model (ASC 985-20)11:25 – When technological feasibility of software is established19:55 – The types of costs capitalized under the model for externally marketed software22:40 – Practical challenges in applying the externally marketed software model27:55 – Applying the guidance to Artificial Intelligence (AI) 31:10 – An update on the FASB’s software costs projectFor more information, see chapter 2 of our Softwa

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 international spotlight shifts towards the United States. In this episode, they discuss: 01:46 – The significance of the year of global consequential election 04:15– The impacts of recent European elections 08:31 – Global elections beyond Europe that could have notable outcomes, including Mexico and Bangladesh 14:16–What a company should know about a country when assessing market entry on both a macro and tactical level, includin

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 administration5:40 – The SEC's rulemaking agenda7:28 – Recent court actions impacting the SEC21:10 – Non-GAAP measures29:00 – Cybersecurity37:24 – Artificial intelligence41:33 – Other SEC focus areas46:36 – 90 years of history at the SECFor more information on topics discussed during the podcast see our publications To GAAP or to non-GAAP, SEC adopts cybersecurity disclosure rules, and SEC comment letter trends. For more on the SEC’s 90 year history, follow the SEC on LinkedIn. Also, for more of our episodes follow this podcast on your favorite podcast app.Kyle Moffatt is P

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 come. Spoiler alert – stay the course.In this episode, they discuss:3:30– With even more IRA developments, what companies should focus on now, including transferability of tax credits 6:48 – Meeting the prevailing wage and apprenticeship requirements to unlock the full value of the IRA10:57 – Additional IRS guidance on domestic content requirements13:56 – The latest developments on Section 48C credits19:00 – Changes to expect

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 model20:27 – Application of an accounting policy for recognition and presentation 25:04 – Timing of recognition, presentation, and disclosure32:42 – Other areas of GAAP that may apply to the arrangementFor more information, see section 2.4.1 of our Revenue guide. Also, check out other episodes in our miniseries: Modifying a contract? Your revenue recognition may change, Gross versus net revenue: Is your company the principal or agent?, and Identifying the contract – The first step in recognizing revenue. Additionally

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 world9:20 – Variability of sustainability reporting and interoperability guidance19:08 – Challenges reporting under multiple frameworks and ISSB partnerships to address them25:31 – Responsibilities to report under other frameworks, such as California SB 261 (based on TCFD)29:41 – Working to address investor needs and concerns31:35 – Aligning ISSB reporting and sector standards35:10 – How the ISSB is supporting implementation38:40 – Advice for companies navigating the evolving sustainability reporting landscapeWant to hear

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 11:28 – Other types of modifications 13:16 – Common contract modification scenarios and related accounting pitfalls 23:22 – Contract terminations For more information, see section 2.9 of our Revenue guide. Also, check out other episodes in our miniseries: Gross versus net revenue: Is your company the principal or agent? and Identifying the contract – The first step in recognizing revenue. Additionally, follow this podcast on your f

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 standard5:00 – Aggregation and disaggregation (impacting all primary financial statements and notes)9:00 – Structural changes to the statement of profit or loss18:25 – Getting started with implementation and the timeline21:19 – Management-defined performance measuresFor more information, read our publication, IFRS 18 is here: redefining financial performance reporting. Additionally, follow this podcast on your favorite podcast app for more episodes.Gary Berchowitz is the non-fina

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 rights16:03 – Assessing collectibility of the consideration in the contract27:08 – Determining the contract term For more information, read chapter 2 of our Revenue guide. Also, to hear more on revenue topics, listen to the first episode in this miniseries, Gross versus net revenue: Is your company the principal or agent?. Additionally, follow this podcast on your favorite podcast app for more episodes.Mike Coleman is a partner in PwC's National Office with over 30 years of experience. Mike specializes in accounting

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 strategies 10:45 – The importance of nature positive business12:58 – Nature reporting developments, including those related to the European Sustainability Reporting Standards and the Task Force on Nature Related Financial Disclosures (TNFD)23:27 – Insights on how companies can combine nature strategy and reporting28:55 – What’s on the horizon for nature positive business Interested in more background on measuring and reporting nature and b

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.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 and reporting impacts8:45 – Key considerations in the PvA analysis9:50 – Assessing control16:25 – Challenges in applying the PvA analysis to specific arrangements, including:16:59 – Healthcare services24:15 – Payment processing30:12 – Additional reminders relating to the PvA analysis and related disclosuresFor more information, read chapter 10 of our Revenue guide. Additionally, follow this podcast on your favorite podcast app fo