PwC's accounting podcast

We continue our revenue accounting podcast miniseries with an episode focused on presentation and disclosure. From balance sheet and income statement classification to required disclosures under ASC 606, we highlight key guidance and address key areas where questions often arise in practice.In this episode, we discuss:1:27 – Income statement presentation of revenue4:16 – Balance sheet presentation considerations related to revenue 9:38 – Overview of revenue disclosure objectives and the five primary disclosure areas:11:27 – Disaggregated revenue18:40 – Performance obligations23:26 – Significant judgments26:31 – Contract balances29:01 – Costs to obtain or fulfill a contractFor more information, chapter 33 of our Financial statement presentation guide. You can also listen to the other episodes in this series: Revenue accounting reset – Recognizing revenue Revenue accounting reset – Variable considerationRevenue accounting reset – Consideration payable to a customerBe sure to follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to stay in the loop.About our guestsChristine Moore is a director in PwC’s National Office advising audit and non-audit clients on complex accounting and financial reporting matters. She advises on revenue arrangements for public and private companies across various industries, with a focus on companies in the pharmaceutical and life sciences industry.Mike Coleman is a partner in PwC's National Office who 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.About our guest hostGuest host Diana Stoltzfus is a partner in the National Office who helps to shape PwC’s perspectives on regulatory matters, responses to rulemakings and policy development, and implementation related to significant new rules and regulations. Prior to rejoining PwC, Diana was the Deputy Chief Accountant in the Office of the Chief Accountant (OCA) at the SEC where she led the activities of the OCA’s Professional Practices Group.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.comDid you enjoy this episode? Text us your thoughts and be sure to include the episode name.

We continue our revenue accounting podcast miniseries with a discussion on payments to customers—an area that can raise complex accounting questions, especially when those payments come in the form of equity. We examine when these payments reduce revenue versus when they represent consideration for a distinct good or service. We also highlight updates from the FASB’s new guidance on share-based consideration payable to a customer.In this episode, we discuss:0:56 – Overview of consideration payable to a customer5:41 – When to recognize payments to a customer15:15 – Applying ASC 718 to equity-based payments to a customer23:41 – Key provisions in FASB’s new guidance on equity consideration29:49 – Classifying, measuring, and recognizing equity payments36:41 – Accounting for payments to settle litigation claims or other disputesFor more information, see chapter 4 of our Revenue guide, chapter 7 of our Stock-based compensation guide, and our In brief, FASB issues guidance on share-based consideration payable to a customer. Listen to the other episodes in this series:Revenue accounting reset – Recognizing revenueRevenue accounting reset – Variable consideration Be sure to follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to stay in the loop. About our guestsKen 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 compensation issues during IPOs, spinoffs, acquisitions, and other major transactions or events.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.About our hostHeather Horn is the PwC National Office Sustainability and Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also 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.Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

We continue our revenue accounting miniseries with an episode taking a closer look at variable consideration—an essential and sometimes complex element in determining transaction price. From performance bonuses to volume-based rebates, we explore how to estimate and constrain variable amounts as well as when key exceptions apply.In this episode, we discuss:0:58 – Why variable consideration is a critical element of the ASC 606 model7:00 – The general model for estimating variable consideration9:02 – Applying the constraint on the amount of variable consideration18:25 – Common types of arrangements that include variable consideration, such as volume-based rebates and discounts20:59 – Key exceptions to the general model:21:10 – Sales- or usage-based royalty exception26:04 – Variable consideration allocation exception30:24 – Right-to-invoice measure of progress exceptionFor more information, see chapter 4 of our Revenue from contracts with customers guide. You can also listen to the first episode in this series, Revenue accounting reset – Recognizing revenue.Be sure to follow this podcast on your favorite podcast app and subscribe to our weekly newsletter for the latest thought leadership.About our guestsAngela 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.Chris Bourdon is a partner in PwC's National Office who specializes in accounting for revenue, inventory, and employee compensation arrangements. He also consults on a range of financial reporting issues impacting technology, media, and entertainment companies.About our hostHeather Horn is the PwC National Office Sustainability and Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also 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. Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

We kick off our latest accounting podcast miniseries on revenue accounting with a foundational discussion on revenue recognition. In this episode, we tackle recognizing revenue —the final step of the ASC 606 model—and examine how to determine whether performance obligations are satisfied over time or at a point in time.In this episode, we discuss:0:54 – Overview of the ASC 606 revenue model5:30 – Identifying performance obligations satisfied over time11:15 – Identifying performance obligations satisfied at a point in time21:19 – Measures of progress to determine the timing of revenue recognition33:45 – Exceptions to over-time revenue recognitionFor more information, see chapter 6 of our Revenue from contracts with customers guide.Be sure to follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to stay in the loop.About our guestsPat Durbin is a PwC National Office Deputy Chief Accountant. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.Mike Coleman is a partner in PwC's National Office who 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.About our guest hostGuest host Diana Stoltzfus is a partner in the National Office who helps to shape PwC’s perspectives on regulatory matters, responses to rulemakings and policy development, and implementation related to significant new rules and regulations. Prior to rejoining PwC, Diana was the Deputy Chief Accountant in the Office of the Chief Accountant (OCA) at the SEC where she led the activities of the OCA’s Professional Practices Group.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.comDid you enjoy this episode? Text us your thoughts and be sure to include the episode name.

We continue our lease accounting podcast miniseries with an episode focused on embedded leases. Some arrangements to provide services or purchase inventory rely on the use of a specific asset to fulfill the contract. Even if the word “lease” doesn’t appear, the rights conveyed to the customer may still meet the definition of a lease—shifting the transaction from simply purchasing services or goods to leasing an asset. We explain why identifying an embedded lease is critical and how it can significantly impact the accounting and financial reporting for both customers and suppliers.In this episode, we discuss:1:40 – An overview of embedded leases and common arrangements6:50 – Determining whether an arrangement contains a lease24:07 – Allocating contract consideration to lease and nonlease components34:19 – Available practical expedients39:01 – Accounting and reporting implicationsFor more information, see chapter 2 of our Leases guide and chapter 4 and 5 of our Revenue from contracts with customers guide. You can also listen to the other episodes in this series:Lease accounting reset - Presentation and disclosureLease accounting reset - Modifications and terminationsLease accounting reset – Variable rentsBe sure to follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to for the latest thought leadership.About our guestsMarc Jerusalem is a PwC National Office managing director specializing in leasing. Marc consults with clients on complex lease accounting issues and is a frequent contributor to many related PwC National Office publications.Pat Durbin is a PwC National Office Deputy Chief Accountant. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.About our guest hostGuest host Diana Stoltzfus is a partner in the National Office who helps to shape PwC’s perspectives on regulatory matters, responses to rulemakings and policy development, and implementation related to significant new rules and regulations. Prior to rejoining PwC, Diana was the Deputy Chief Accountant in the Office of the Chief Accountant (OCA) at the SEC where she led the activities of the OCA’s Professional Practices Group.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.comDid you enjoy this episode? Text us your thoughts and be sure to include the episode name.

Join Marc Jerusalem, a leasing expert at PwC, and Suzanne Stephani, a director specializing in cash flows and leasing guidance, as they dissect the nuances of variable lease payments. They delve into the differences between fixed and variable payments, touching on how usage-based and index-based payments influence lease classification. The duo also explores tenant improvement allowances, the impact of CPI on leases, and the complexities of lease remeasurement, offering valuable insights for navigating accounting practices under ASC 842.

Marcin Olewinski, a seasoned PwC Assurance practice partner with over 20 years in the energy sector, sheds light on the proposed amendments to IFRS S2 by the ISSB. He discusses the complexities of greenhouse gas disclosures, particularly the clarifications around scope 3 emissions. The conversation touches on the role of the Transition Implementation Group and the challenges in standardizing measurement methodologies. Marcin also emphasizes the importance of flexibility in reporting standards and the need for businesses to adapt to these upcoming changes.

We continue our lease accounting miniseries with an episode focused on modifications and terminations. From determining whether a change results in a new lease to navigating remeasurement requirements, we share practical insights and key reminders for applying the guidance.In this episode, we discuss:1:12 – How to determine if a lease modification should be treated as a new lease or a remeasurement of the existing lease10:31 – Key accounting steps in a lease modification and remeasurement17:49 – Differentiating a lease termination from a modification20:59 – Example of a lease modification for downsizing leased space24:07 – Modifications to combined versus separate lease contractsFor more information, see chapter 5 of our Leases guide. You can also listen to the first episode in this series, Lease accounting reset - Presentation and disclosure. Be sure to follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to for the latest thought leadership.About our guestsMarc Jerusalem is a managing director in PwC’s National Office specializing in leasing. Marc consults with clients on complex lease accounting issues and is a frequent contributor to many related PwC National Office publications.Suzanne Stephani is a director in PwC’s National Office specializing in the statement of cash flows as well as the application and interpretation of the accounting guidance related to financing and leasing transactions.About our hostHeather Horn is the PwC National Office Sustainability and Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also 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.comDid you enjoy this episode? Text us your thoughts and be sure to include the episode name.

Diana Stoltzfus, a regulatory expert and partner at PwC, shares insights on the evolving EU Omnibus package and its implications for sustainability regulations. The conversation highlights recent developments in the legislative process, including feedback from businesses and leaked information on proposed changes. Key topics include the potential impacts of the European Sustainability Reporting Standards and discussions surrounding disclosure simplification. Stoltzfus also addresses challenges faced by smaller firms and the importance of double materiality assessments for long-term sustainability.

We kick off our latest accounting miniseries on lease accounting with an episode on the related presentation and disclosure requirements. We break down key considerations across the balance sheet, income statement, and statement of cash flows, including what interim and annual disclosures are required as well as the treatment of lease incentives, sublease income, and more.In this episode, we discuss:2:12 – Current versus noncurrent lease liabilities5:37 – Presentation of lease incentives11:40 – Income statement presentation of lease expense16:29 – Classification of lease payments in the statement of cash flows26:25 – Annual and interim lease disclosure requirementsFor more information, check out our Leases guide and the leasing chapter of the Financial statement presentation guide.Be sure to follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to stay in the loop. About our guestsMarc Jerusalem is a PwC National Office managing director specializing in leasing. Marc consults with clients on complex lease accounting issues and is a frequent contributor to many related PwC National Office publications.Suzanne Stephani is a director in PwC’s National Office specializing in the statement of cash flows, as well as the application and interpretation of the accounting guidance related to financing and leasing transactions.About our hostHeather Horn is the PwC National Office Sustainability and Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also 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.comDid you enjoy this episode? Text us your thoughts and be sure to include the episode name.