Full disclosure: The income statement

Our Full disclosure podcast series brings you back to the basics on all things related to financial statement presentation and disclosure, from the top of the financial statements through the footnotes.

Our second episode in this series focuses on the income statement. Valerie Wieman and Ashleigh Pierce from our National office join host Heather Horn to share helpful insights and key reminders.

Topics include:

• 1:28 - General presentation reminders. Valerie sets the stage for today’s discussion with a breakdown of the general income statement presentation requirements.
• 6:31 - Revenue presentation. Valerie and Ashleigh take us through the SEC requirements for presenting revenue and how to distinguish between revenues and gains.
• 11:55 - Cost of sales and operating expenses reminders. Valerie and Ashleigh remind us of the judgment involved when allocating your expenses between cost of sales and operating expenses.
• 18:52 - Operating measures and subtotals. Ashleigh provides some key reminders for companies that choose to present an operating measure on their income statement.
• 21:20 - SEC comment letters. Valerie highlights relevant SEC comment letter trends, including cost classification, depreciation and amortization, and gross profit subtotals.
• 23:24 - Other specific presentation requirements. Our guests walk through presentation and disclosure of research and development costs, collaborative arrangements, long-lived asset impairments and non-operating income and expenses.
• 30:27 - Government grants. Ashleigh shares presentation and disclosure reminders related to the receipt of government grants.
• 35:54 - Standard setting update. Ashleigh and Valerie wrap up by highlighting projects on the FASB’s technical agenda that impact the income statement and related disclosures.

Want to learn more? Read Chapter 3: Income statement of our Financial statement presentation guide.

And listen to our Podcast: Disaggregated expense disclosures – The FASB’s new DISE standard

Valerie Wieman is PwC’s National office Editor-in-chief. She manages the creation, development, and publication of our brand-defining thought leadership. Prior to that role, she was part of PwC’s National office SEC services group, helping clients navigate SEC rules and regulations.

Ashleigh Pierce is a director in PwC’s National office specializing in technical accounting matters, strategic thought leadership, and podcast content. She has experience serving multinational clients, both public and private, primarily in the consumer markets, healthcare, not-for-profit, higher education, and industrial products sectors.

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, as well as periodic webcasts for the power and utilities industry. With nearly 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

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