Pwc's Cfodirect Podcast

The European Union (EU) has ushered in a new era of sustainability reporting, as the Corporate Sustainability Reporting Directive (CSRD) is now effective. With impacts to both EU and non-EU headquartered companies, now is the time to understand the reporting requirements of this sweeping new regulation.  Continuing our CSRD series, in this episode we discuss how the investor community views and benchmarks sustainability requirements. This week, host Heather Horn is joined by Claire Berthier, CEO of French asset management firm Trusteam Finance, to share her viewpoint on how companies can align their sustainability reporting and corporate strategy to meet investor needs.  In this episode, you’ll hear: 3:35 - Background on why investors look for enhanced sustainability disclosures 10:11 - The explanation of strategy, mission, and other key initiatives in sustainability disclosures  19:52 - The importance of communications among investors, companies, and other stakeholders 32:22 - How the EU’s Green Taxonomy reg

In each episode of our 2023 SEC comment letter trends series, our guests bring you the latest themes in comment letters from the SEC’s Division of Corporation Finance. This week, host Heather Horn is joined by PwC National Office partner Ryan Spencer to discuss the continued focus in SEC comment letters on Management’s Discussion and Analysis (MD&A) and share insights for preparers on how to avoid the common pitfalls.In this episode, you’ll hear: 0:52 - An overview of the trends in comment letters related to MD&A, including sector-specific insights 3:59 - A refresher on MD&A reporting requirements and a deep dive into comment letter themes, including: 5:04 - Insights on the concentration of comments related to disclosures on the results of operations and the need for forward-looking discussions 8:05 - The focus on performance metrics and their connection to corporate strategy 10:56 - The rise in comments related to management’s analysis and quantification of material fluctuations 12:45 - Why prepa

The European Union (EU) has ushered in a new era of sustainability reporting, as the Corporate Sustainability Reporting Directive (CSRD) is now effective. With impacts to both EU and non-EU headquartered companies, now is the time to understand the reporting requirements of this sweeping new regulation. This week we zoom out to review the broader landscape of EU regulations. Introduced as a result of the European Green Deal strategic policy initiative, these regulations will have impacts on topics from carbon pricing, to foreign subsidy disclosures, to corporate governance, and more. In this episode, Heather Horn is joined by PwC Netherlands partners Niels Muller and Linda Thonen to review these regulations, and how they will impact entities that are in scope. In this episode, you’ll hear:4:05 - Background on the European Green Deal6:42 - The Carbon Border Adjustment Mechanism (CBAM) and its impact to carbon pricing on EU imports16:25 - The Foreign Subsidies Regulation (FSR) and its interaction with the Infla

In each episode of our 2023 SEC comment letter trends series, our guests bring you the latest themes in comment letters from the SEC’s Division of Corporation Finance.This week, host Heather Horn is joined by PwC Deputy Chief Accountant Beth Paul to discuss the rise in SEC comment letters on business combinations and share insights for preparers on how to avoid the common pitfalls. In this episode, you’ll hear:2:35 - Insights into the increase in comment letters related to business combinations, including sector observations6:34 - An overview of the themes and trends in comment letters related to business combinations11:44 - A deep dive into SEC staff comments as well as reminders on disclosure and filing requirements, including significance tests and pro forma reporting21:07 - A summary of comment letter trends related to fair value 23:22 - Considerations on goodwill impairment tests and market cap reconciliations29:32 - Final advice for preparers dealing with business combinationsWant to learn more? Check o

The Task Force on Climate-related Financial Disclosures (TCFD) framework serves as a foundation for the major ESG disclosure frameworks, and also the basis for the California SB 261 climate disclosure rules recently signed into law. The UK first mandated reporting under the TCFD for listed companies beginning in 2021, and as such, there are two years of reports and insights available in 2023.  In today’s podcast, host Heather Horn sat down with Mark O’Sullivan, PwC UK’s Head of Corporate Reporting, to discuss PwC’s review of the second year of mandatory TCFD reporting for certain companies in the UK, and how insights from this review can help companies looking to start or enhance their climate-related disclosures. In this episode, you’ll hear:4:44 - Our review findings for year two of mandatory TCFD reporting in the UK10:12 - Current challenges, including the understanding and expectation gaps faced by companies required to “comply or explain”18:09 - Observations and trends by industry 24:01 - Key takeaways f

In each episode of our 2023 SEC comment letter trends series, our guests bring you the latest themes in comment letters from the SEC’s Division of Corporation Finance.This week, host Heather Horn sat down with PwC National Office partner Mike Coleman to discuss common issues noted in the SEC staff’s comments on revenue, and why it consistently remains a top area of focus.In this episode, you’ll hear:2:03 - An overview of comment letter themes related to revenue and a discussion of the prominence of revenue in financial reporting6:53 - Key considerations in determining performance obligations and the significance of judgments made14:19 - Insights on the continued focus on revenue estimates, including challenges related to recognizing variable consideration and determining standalone selling prices when estimates are embedded in transaction prices20:46 - Common pitfalls with revenue disclosures27:26 - Important reminders on principal-versus-agent considerations30:54 - Sector-specific insights and trends and the

The European Union (EU) has ushered in a new era of sustainability reporting, as the Corporate Sustainability Reporting Directive (CSRD) is now effective. With impacts to both EU and non-EU headquartered companies, now is the time to understand the reporting requirements of this sweeping new regulation. Continuing our CSRD series, this week we discuss the topic of “double materiality,” which represents the intersection between impact materiality and financial materiality. In this episode, Heather Horn is joined by Cécile Saint-Martin, PwC’s Global ESG Assurance Leader, to go over this critical element in determining the applicable impacts, risks, and opportunities, as well as extent of disclosures under CSRD.In this episode, you’ll hear:3:09 - Lessons learned from legacy reporting under the Non-financial Reporting Directive (NFRD), the predecessor to CSRD4:32 - Introduction to double materiality 10:17 - Examples of the double materiality assessment for specific topics17:29 - The interplay between ESRS and oth

In each episode of our 2023 SEC comment letter trends series, our guests bring you the latest themes in comment letters from the SEC’s Division of Corporation Finance.This week, host Heather Horn sat down with PwC National Office partner Kevin Vaughn to discuss the SEC staff’s continued focus on non-GAAP measures, the area with the highest number of comments.In this episode, you’ll hear:3:06 - The significance of non-GAAP measures and why they continue to be a focus area for the SEC7:50 - Updates on new and amended compliance and disclosure interpretations (C&DIs) related to non-GAAP measures and their impact on comment letters18:19 - Advice for preparers when responding to SEC staff comments20:08 - Insights on pervasive comment letter themes, including:20:27 - Undue prominence of non-GAAP measures21:40 - Reconciliation of non-GAAP measures and the differentiation between recurring and non-recurring expenses27:10 - Other top comment letter themes in non-GAAP comments, including nature of non-GAAP adjustme

The European Union (EU) has ushered in a new era of sustainability reporting, as the Corporate Sustainability Reporting Directive (CSRD) is now effective. With impacts to both EU and non-EU headquartered companies, now is the time to understand the reporting requirements of this sweeping new regulation. Continuing our CSRD series, this week we dive deeper into the EU’s “green” taxonomy regulation, which requires disclosure of certain metrics related to a company’s environmentally sustainable activities as early as 2024. In this episode, Heather Horn welcomes back PwC Germany senior manager Martin Schönberger to address common questions related to interpretation of the rules, eligibility of the activities, and calculation of the metrics as they apply to non-financial services companies. In this episode, you’ll hear discussion of:2:32 - The evolution of EU green taxonomy reporting from the original two objectives to the current six12:15 - Using the promulgated reporting templates as a tool to align activities t

On October 7, 2023, California Governor Gavin Newsom signed into law two landmark climate-disclosure bills that are poised to change the landscape of climate reporting in the United States. Over 10,000 US companies - including both public and private companies as well as subsidiaries of non-US headquartered companies - will be subject to the climate disclosure requirements in the near term.In this episode, podcast host Heather Horn brings you an audio version of our publication covering the expansive impact of these new laws. In this podcast, you’ll hear:1:38 - Background and introduction7:13 - Who would be subject to the new laws, and applicability of AB 1305: Voluntary carbon market disclosures15:44 - Disclosure requirements28:43 - Monitoring31:24 - SB 54: Venture capital diversity disclosures32:34 - What’s nextRefer also to the print version, California's not waiting for the SEC's climate disclosure rules.Heather Horn is PwC’s National Office thought leader, responsible for developing our communi

With year-end reporting around the corner, we kick off our 2023 SEC comment letter trends series, in which our guests bring you the latest themes in comment letters from the SEC’s Division of Corporation Finance.This week, Heather Horn is joined by Kyle Moffatt, PwC National Office Professional Practice Leader, to share an overview of the 2023 comment letter trends, a breakdown of the SEC’s review process, and insights into the SEC staff’s key priorities.In this episode, you’ll hear:2:01 - A breakdown of the SEC review process, including the staff’s current priorities, review timing, and key enforcement actions18:28 - The impact of a potential government shutdown on the SEC’s review process and on the capital markets more broadly22:43 - An overview of the the top SEC comment letter trends in 202329:14 - Insights into changes in the SEC’s priorities and volume of comment letters, updates on the climate disclosure proposal, and 2024 enforcement priorities34:11 - Key insights into what preparers should focus on,

The European Union (EU) has ushered in a new era of sustainability reporting, as the Corporate Sustainability Reporting Directive (CSRD) is now effective. With impacts to both EU and non-EU headquartered companies, now is the time to understand the reporting requirements of this sweeping new regulation. Continuing our CSRD miniseries, this week we discuss the EU’s “green” taxonomy regulation, which requires disclosure of certain metrics related to a company’s  environmentally sustainable activities. Under these rules, companies that are in the scope of CSRD will be further required to identify and disclose the extent of their operations that align with the promulgated classification of sustainable activities. In this episode, Heather Horn is joined by PwC Germany senior manager Martin Schönberger to discuss the essentials of the regulation, including an overview of sustainable activities, how to determine whether activities are “aligned” with environmentally sustainable objectives, and disclosure requirements

With increasing costs of living and an unpredictable economic environment, the concept of paying a “living wage” is gaining attention from businesses and governments around the world. As pay adequacy becomes a mandated disclosure for many companies via the European Union’s Corporate Sustainability Reporting Directive (CSRD), paying a living wage is becoming a growing priority for organizations that are focused on creating a sustainable business.PwC recently published the inaugural Global Living Wage survey to provide deeper insights on this topic and its impact to businesses. In this episode, host Heather Horn welcomes PwC partners Barry Murphy and Paula Letorey to discuss the survey results, market trends, and key steps organizations should take now to prepare for market and regulatory movement.In this episode, you’ll hear discussion of:4:43 - Why PwC conducted the Global Living Wage survey7:13 - Defining a “living wage”9:45 - Key findings from the survey17:01 - Common challenges to adopting a living wage22:

As the end of the year approaches, it is helpful to understand what is top of mind under International Financial Reporting Standards (IFRS) and what lies ahead from the International Accounting Standards Board (IASB).In this episode, Heather Horn was joined by Gary Berchowitz, a leader in PwC’s Global Assurance Quality - Corporate Reporting Services group, and Laura Kennedy, a director in the Corporate Reporting Services group, to discuss key reminders for year-end reporting under IFRS as well as some timely updates on new IFRS initiatives on the horizon.In this episode, you’ll hear:2:37 - An overview of the current status of IFRS Accounting Standards and what’s to come, including:4:29 - A breakdown of IFRS 17, Insurance Contracts, which became effective in 2023 and applies to non-insurers as well as insurers5:50 - New amended requirements for currency transactions8:10 - The global political and economic outlook and its impact on reporting, including assumptions for accounting determinations such as impairmen

The European Union (EU) has ushered in a new era of sustainability reporting, as the Corporate Sustainability Reporting Directive (CSRD) is now effective. With impacts to both EU and non-EU headquartered companies, now is the time to understand the reporting requirements of this sweeping new regulation. Continuing our miniseries focused on the essentials of the CSRD, this week we discuss options a company may have in its approach to reporting. In this episode, Heather welcomes back Emily Kirsch, director in PwC’s sustainability practice, to share practical considerations in a company’s determination of the most effective reporting approach for its organization. In this episode, you’ll hear discussion of:5:03 - Scope requirements under the CSRD7:37 - Available reporting exemptions 11:46 - Initial considerations for deciding the level of reporting, and whom to involve16:19 - How to consider data availability, IT systems, and organizational structure23:27 - Timing of reporting deadlines and phase-in reliefs for

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 mission11:28 - How standard setting, application, and enforcement drive the US reporting environment13:22 - 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 each21:34 - Why preparers should pay attention to PCAOB developments23:35 - A comparison of the rule-making processes across standard-setters and reg

The European Union (EU) has ushered in a new era of sustainability reporting, as the Corporate Sustainability Reporting Directive (CSRD) became effective in January 2023 and the European Sustainability Reporting Standards (ESRS) are now final. With impacts to both EU and non-EU headquartered companies, now is the time to understand the applicability and scope of these reporting requirements.To launch our podcast miniseries on the CSRD, host Heather Horn is joined by Emily Kirsch, director in PwC’s sustainability practice, and Soné Beyers, director in PwC’s National Office, to provide a refresher course on the basic requirements and applicability of the EU’s sweeping sustainability reporting directive.In this episode, you’ll hear discussion of:4:04 - Background and latest developments on the CSRD12:54 - The final set of 12 ESRS, which will be effective starting in 2024 15:36 - What companies are within the scope of the CSRD and required to follow ESRS21:32 - Key dates for CSRD effectiveness, scoping threshold

Assessing whether a company is in scope of the European Union (EU) Corporate Sustainability Reporting Directive (CSRD) has some inherent complexities. The scope of companies directly impacted is expansive — including US and other non-EU headquartered companies — making scoping a question that merits priority focus by companies with operations in the EU.A company may have options in its approach to fulfilling its CSRD reporting requirements, and there are practical considerations that may inform a company’s determination of the most effective reporting approach for its organization under the CSRD. In this episode, Heather Horn brings you an audio version of our In the loop publication discussing these scoping and reporting approaches under the CSRD. In this podcast, you’ll hear:1:15 - Background and introduction4:52 - Four steps to decide on how to report9:20 - What is the scope of reporting obligations, and are there any exemptions?13:35 - What information needs to be gathered?26:32 - What is the timing of re

Integrating sustainability in business strategy may increase the attractiveness of business to lenders, investors, and customers. However, with the multitude of sustainability reporting frameworks for multinational companies, it can be difficult to determine the best way to tell a unified story to all stakeholders that is consistent with the company’s overall sustainability strategy.In this episode, host Heather Horn welcomes Esther An, Chief Sustainability Officer of Singapore-based real estate firm City Developments Limited, to discuss how companies can manage multiple disclosure frameworks while utilizing sustainability reporting as a catalyst for business innovation, investment, and impact. In this episode, you’ll hear discussion of:5:02 - Esther’s professional background and sustainability leadership in Singapore12:06 - How COVID-19 accelerated awareness of sustainability17:35 - Creating business value through sustainability and achieving the “triple bottom line” of profit, people, and planet20:58 - Four

As effective dates for sustainability reporting requirements inch closer, companies face pressure to stand up reporting workstreams before it is too late. With multiple frameworks coming into play in the near term, managing the data gathering, aggregation, and reporting of numerous metrics is a manual exercise for many companies. But is there technology that can help?In today’s episode, host Heather Horn is joined by Sammy Lakshmanan, principal in PwC’s Sustainability Consulting Solutions practice, to discuss the ways that leading companies are integrating technology into their sustainability reporting work plans. Sammy provides insights on how companies can leverage the power of technology to generate value that goes beyond compliance. In this episode, you’ll hear discussion of:4:02 - Expected impacts of the shift from voluntary to mandatory ESG reporting7:47 - The current landscape of sustainability reporting technology solutions 10:29 - A roadmap for digital transformation, including the sequencing of even