PwC's accounting podcast

In our Toolkit podcast series, we are taking a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering income taxes–an area that generates numerous technical questions.In this episode, Heather Horn was joined by Jenn Spang and Matt McCann, partners in PwC’s National Office, to discuss valuation allowances, an often challenging topic that contains multiple decision points and requires ongoing evaluation.In this episode, you will hear:2:02 - The definition of a valuation allowance4:28 - An overview of the applicable accounting guidance7:08 - Tips on when a timely scheduling analysis may be helpful10:38 - Negative evidence represented by cumulative losses in recent years16:05 - The relative weight of projections of future income 24:23 - How tax planning strategies factor into available evidence31:24 - Common misconceptions in performing valuation allowance assessments36:16 - Navigating reversals of valuation allowances: timing, documentation, and disclosures42:04 - Takeaways on improving the process of performing valuation allowance assessmentsWant to learn more? Listen to the previous podcasts in our Tax toolkit in which we discuss how to consider uncertain tax positions, separate company financial statements, divestitures, and the scope of ASC 740. Also, refer to the chapter on valuation allowances in our Income taxes guide.Jenn Spang is a partner in PwC’s National Office and serves as the 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.Matt 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. Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

In our Toolkit podcast series, we are taking a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering income taxes–an area that generates numerous technical questions.Companies prepare separate financial statements of subsidiaries for various reasons, such as spin offs, regulatory requirements, or compliance with debt covenants. In this episode, Heather Horn was joined by Jenn Spang and Matt McCann, partners in PwC’s National Office, to discuss the accounting guidance for income tax provisions in separate company financial statements.In this episode, you will hear:1:15 - An overview of guidance for allocating a tax provision to subsidiaries under ASC 7406:26 - An introduction to the separate return method12:15 - Common modifications to the separate return method, including benefits-for-losses17:50 - How tax sharing agreements impact the provision and related balance sheet accounts25:22 - How to account for uncertain tax positions in separate company financial statements27:59 - Specific considerations for carve-out financial statements35:33 - Final advice on how to effectively navigate the complexities of separate financial statementsWant to learn more? Listen to our previous podcasts, Working with uncertain tax positions, and read about separate company financial statements in our Income taxes guide.Jenn Spang is a partner in PwC’s National Office and serves as the 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.Matt 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.Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

In our Toolkit podcast series, we are taking a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering income taxes–a multifaceted area that generates numerous technical questions.In this episode, Heather Horn was joined by Jenn Spang and Kassie Bauman from PwC’s National Office to discuss the accounting guidance for divestitures, focusing on some of the primary judgments.In this episode, you will hear:4:06 - Considerations during the period of time that a company is contemplating a divestiture8:38 - Key judgments when assessing valuation allowances before a divestiture is classified as held-for-sale17:56 - How the timing of deferred tax liability reversals could impact valuation allowances20:26 - Held-for-sale accounting: how to determine whether deferred taxes are included in the disposal group28:32 - Financial statement presentation considerations for after the divestiture has occurred42:20 - Additional focus areas to keep in mind for successful divestiture tax accountingWant to learn more? Listen to our previous podcast, Working with uncertain tax positions, and read about how a disposal impacts Valuation allowances in our Income taxes guide.Jenn Spang is a partner in PwC’s National Office and serves as the 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.Kassie Bauman is a managing director in PwC's National Office who consults on tax accounting under US GAAP and IFRS. Kassie has more than 20 years of auditing and accounting experience, including significant experience addressing complex technical accounting matters as part of the firm’s National Office.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.Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

In our Toolkit podcast series, we are taking a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering income taxes–a multifaceted area that generates numerous technical questions.In this episode, Heather Horn was joined by Jennifer Spang and Kassie Bauman from PwC’s National Office to discuss the accounting guidance for uncertain tax positions, focusing on some of the primary judgments that need to be made.In this episode, you will hear:1:32 - What constitutes an uncertain tax position (UTP)5:11 - Rules covering the measurement and recognition of UTPs9:32 - How to assess multiple outcomes and cumulative probability when recording UTPs15:07 - Key judgments to exercise when evaluating the consistency of a position with administrative practice and precedence23:58 - The importance of periodic reassessment and continuing to evaluate new information that could impact how UTPs are recorded33:59 - Disclosure considerations40:33 - Final advice on preparing disclosures and related documentationWant to learn more? Listen to our previous podcast, Uncertain tax positions: the basics, and read our chapter on Accounting for uncertainty in income taxes in our Income taxes guide.Jennifer Spang is a partner in PwC’s National Office and serves as the 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.Kassie Bauman is a managing director in PwC's National Office who consults on tax accounting under US GAAP and IFRS. Kassie has more than 20 years of auditing and accounting experience, including significant experience addressing complex technical accounting matters as part of the firm’s National Office.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. Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

While market participants continue to discuss the potential impact of the SEC’s proposed climate disclosure rules, companies are currently receiving comment letters under existing SEC climate disclosure guidance.In this episode, Heather Horn and Valerie Wieman, partners in PwC’s National Office, bring you an audio version of our In the loop on the existing guidance, including:1:35 - Background on SEC climate disclosure guidance, including its historical timeline6:49 - The specific Regulation S-K items drawing the attention of the staff today10:50 - Examples of the types of events that may require disclosure15:21 - Example original and follow-up comments from the SEC staff about climate disclosuresRefer also to the print version, Don’t wait until the SEC staff asks you about climate change. For more on the proposed guidance, refer to our publication, The SEC wants me to disclose what? The SEC’s climate disclosure proposal. Also, listen to our previous podcasts giving you a closer look at the proposal, along with legal and regulatory perspectives.Valerie Wieman is PwC’s National Office Editor-in-chief. She is involved in the creation, development, and publication of our brand-defining thought leadership, with a recent focus on ESG reporting. Prior to this role, she was part of PwC’s National Office SEC Services group, helping clients navigate SEC rules and regulations.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.Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

In the last of our four-episode series covering the implications of the war in Ukraine, we focus on accounting considerations for indirect impacts of the conflict, such as those related to customers.In this episode, Heather Horn was joined by Angela Fergason and Bret Dooley, partners in PwC’s National Office, to discuss some of the specific, but indirect, accounting topics and questions companies should consider.In this episode, you will hear:1:52 - How to perform collectibility assessments for transactions with impacted customers8:12 - Broad credit risk considerations that go beyond customers’ financial health10:32 - Accounting considerations when a company chooses to discontinue customer relationships13:25 - Dealing with payables to vendors in Russia when payment cannot be tendered due to sanctions14:55 - Impairment and valuation considerations for financial assets20:08 - Considerations for designated hedge transactions when the forecasted transaction may no longer be probable23:22 - Key reminders: disclosures on collectibility and impairments, and careful consideration of any non-GAAP adjustmentsWant to learn more? Check out our previous podcasts covering the geopolitical implications of the war in Ukraine, an overview of the current state of sanctions, and accounting for impacted operations. Also read our publication, Implications of the Russian government's invasion of Ukraine.Angela Fergason is a partner in PwC's National Office with over 20 years of experience who specializes in accounting for revenue and employee compensation arrangements. She also consults on a range of financial reporting issues impacting technology companies. Angela is a frequent speaker on accounting and financial reporting topics and is a contributor to many PwC National Office publications, including our accounting guides on revenue and stock-based compensation.Bret Dooley is a Deputy Chief Accountant in PwC’s National Office and the financial instruments accounting leader, with over 25 years of experience specializing in the financial services, banking, and capital markets industries. He focuses on emerging financial reporting issues relating 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.Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

In the third of four episodes covering the implications of the war in Ukraine, we focus on accounting considerations for operations that have been impacted by the conflict.In this episode, Heather Horn was joined by Jay Seliber and Reto Micheluzzi, partners in PwC’s National Office, to discuss some of the specific accounting topics and questions companies may need to consider.In this episode, you will hear:1:52 - Factors that determine whether deconsolidation of impacted subsidiaries may be necessary7:12 - How to account for deconsolidation14:18 - Impairment considerations for non-financial assets18:46 - Devaluation of the Ruble and related foreign currency impacts22:10 - When to present operations in Russia as assets held for sale26:25 - Other areas to revisit for impairment assessments, including inventory and equity method investments29:11 - How the war in Ukraine is exacerbating supply chain disruptions, and the related accounting implications32:48 - The importance of quality information as well as transparent and timely disclosures about material issuesWant to learn more? Check out our previous podcasts covering the geopolitical implications of the war in Ukraine and an overview of the current state of sanctions, and read our publication, Implications of the Russian government's invasion of Ukraine.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 to the FASB's Emerging Issues Task Force.Reto Micheluzzi is a partner in PwC’s National Office with over 25 years of experience solving companies’ most complex accounting and financial reporting issues, creating a path through the dense regulatory framework and bodies of rules. He has a deep understanding of the demands associated with today’s accounting complexities and potential SEC reporting issues, primarily related to M&A, consolidation, reorganizations, and income taxes.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. Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

In the second of four episodes covering the implications of the war in Ukraine, we focus on understanding the nature of sanctions that have been imposed on Russia, and their implications for businesses.Heather Horn was joined by Eric Lorber, a principal in PwC’s Cyber, Risk & Regulatory Consulting Solutions practice and Jeannette Chu, a Managing Director in PwC’s Export Controls and Trade Sanctions group, who took a deep dive into US and other government sanctions, with some important insights for finance professionals to consider.In this episode, you will hear:3:12 - The reasons countries have moved quickly and in a multilateral fashion to enact current sanctions6:03 - Comparison of the current sanctions with those imposed on Russia in 201412:26 - Overview of the different categories of restrictions that have been put into place since the beginning of the conflict16:03 - Explanations of specific export and import controls19:50 - Perspectives on the challenges of sanctions for companies and what’s driving the most compliance questions26:44 - What potential expulsion from the G20 would mean for Russia, and discussion of the overall intent and objectives of the sanctions34:54 - Viewpoints on the effectiveness of sanctions in achieving the desired result41:14 - Important next steps for the finance organization, including reviews of compliance programs and other key action itemsWant to learn more? Check out our previous podcast covering the geopolitical implications of the war in Ukraine.Eric Lorber is a Principal in PwC’s Cyber, Risk, & Regulatory practice who advises financial institutions, fintech firms, and other global clients on issues related to compliance with sanctions, anti-money laundering, and anti-terrorism financing rules. Prior to joining PwC, he was a senior advisor to the Undersecretary for Terrorism and Financial Intelligence at the United States Department of the Treasury.Jeannette Chu is a Managing Director in PwC’s Export Controls and Trade Sanctions group, helping companies address compliance risks and challenges. She was formerly a senior US diplomat with leadership positions at the US mission in China for over twelve years, serving as the key subject matter expert on a broad range of complex policy issues, including strategic trade, export controls, and immigration. 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.Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

In the first of four episodes covering the implications of the war in Ukraine, we focus on the geopolitical and macroeconomic impacts that are likely to occur as the conflict continues. Heather Horn was joined by Craig Stronberg, a director in PwC Intelligence, to take us through potential scenarios to expect in the near term.In this episode, you will hear:1:41 - How the business environment is responding to global themes of fragmentation, regulation, and reorientation9:36 - Reasons why countries are generally aligned in their responses to the conflict13:56 - Broad impacts from the conflict that have implications for the future16:48 - Offshoring versus “re”-shoring: expectations for US industrial policy26:12 - Access to products produced in Russia and Ukraine, and the challenges posed by restrictions and conflict34:08 - Key elements for companies to focus on to navigate through the months ahead37:20 - Important questions for the CFO to consider40:12 - Green initiatives and the impact of the conflict on transitionWant to learn more? Check out our previous podcasts with PwC Intelligence, Special episode: Geopolitical and economic outlook for 2022.  Craig Stronberg leads the Business Acumean 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. His focus has been on numerous areas, including counterintelligence, economic espionage, counterterrorism, cyber threats, political-military issues, special operations integration, and support for major events such as the Olympic Games.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 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.Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

In our Toolkit podcast series, we are taking a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering each of the five steps in the revenue recognition model.In this episode, Heather Horn was joined by Angela Fergason and Pat Durbin, partners in PwC’s National Office, to discuss step five of the model: recognizing revenue.In this episode, you will hear:3:15 - Over time recognition - the three criteria to determine whether control transfers over time10:51 - Measures of progress that can be used in over time recognition13:12 - The importance of selecting a method that best depicts the transfer of control, and when a time-based measure of progress may be appropriate18:45 - The “right to invoice” practical expedient22:04 - Point in time recognition and the five indicators that control has transferred28:33 - The impact of repurchase rights in determining whether control has transferred33:39 - Specific considerations for acceptance clauses35:13 - Licenses of intellectual property (IP), including how functional IP and symbolic IP are treated differentlyWant to learn more? Read our chapter on Recognizing revenue in our Revenue guide.Angela Fergason is a partner in PwC's National Office with over 20 years of experience who specializes in accounting for revenue and employee compensation arrangements. She also consults on a range of financial reporting issues impacting technology companies. Angela is a frequent speaker on accounting and financial reporting topics and is a contributor to many PwC National Office publications, including our accounting guides on revenue and stock-based compensation.Pat Durbin is a Deputy Chief Accountant in PwC’s National Office and the leader of the revenue and liabilities division. He has over 30 years of experience consulting with clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.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.Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.