PwC's accounting podcast

In our Toolkit podcast series, we take 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 stock-based compensation – a complex subject with a variety of accounting and reporting considerations.In this episode, Heather Horn was joined by Jay Seliber and Ken Stoler, partners from our National Office, who share accounting insights for stock-based compensation awards with vesting conditions.In this episode, you will hear them discuss:1:47 - An overview of vesting conditions11:04 - How different vesting conditions impact the measurement of an award and related expense recognition17:36 - Typical types of performance vesting conditions and the related accounting26:14 - The complexities of market vesting conditions and accounting36:45 - How to think about awards with both performance and market conditions45:52 - Final advice on accounting for stock-based compensation awards with vesting conditionsWant to learn more? Refer to our previous podcasts on stock-based compensation, including back to basics, award modifications and presentation and disclosure, as well as our Stock-based compensation guide. Stay tuned for more insightful episodes in the coming weeks.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 on the FASB's Emerging Issues Task Force.Ken Stoler is a partner in PwC’s National Office with over 25 years of experience. Ken specializes in financial reporting and plan design issues related to equity compensation arrangements, retirement and healthcare plans, and other benefits, helping companies navigate their employee compensation issues during an IPO, spin off, acquisition, or other major transaction or event. 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 take 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 derivatives–a complicated area that generates numerous questions. In this episode, Heather Horn was joined by Bret Dooley and Chip Currie, partners in PwC’s National Office, and Nick Milone, a partner in PwC’s Financial Markets practice, to share practical insights for navigating the implications of reference rate reform on LIBOR-based derivatives.In this episode, you will hear them discuss:1:20 - The background on reference rate reform and how the discontinuation of LIBOR will impact companies6:22 - The FASB’s response to reference rate reform (ASC 848) and its interaction with hedge accounting guidance12:56 - How to think about LIBOR-based cash flow hedges22:55 - How to think about LIBOR-based fair value hedges33:12 - The FASB’s proposed extension of ASC 848 and final advice for companies with LIBOR-based derivativesWant to learn more? Listen to other episodes in our derivative toolkit series, Do I have a derivative?, Hedging debt with derivatives, and Deciphering foreign currency hedging. For more on reference rate reform, listen to our podcast and refer to our Reference rate reform guide. Bret Dooley is a Deputy Chief Accountant in PwC’s National Office and the financial instruments accounting leader. He has over 25 years of experience specializing in the financial services, banking, and capital markets industries. Bret focuses on emerging financial reporting issues relating to financial instruments, developing interpretive guidance, and assisting clients in resolving complex accounting matters.Chip Currie is a Partner in PwC’s National Office with over 25 years of experience assisting companies in resolving complex business and accounting issues. He concentrates on the accounting for financial instruments under both current and emerging standards and works with many of the firm's largest financial services clients and a number of non-financial service clients on treasury-related matters.Nick Milone is a partner in PwC’s Financial Markets practice where he advises companies on current financial instruments issues and the application of accounting standards. Prior to this role, Nick was a Practice Fellow on the financial instruments team at the FASB, where he helped lead the hedge accounting and recognition and measurement projects.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. Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

In our Toolkit podcast series, we take 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 derivatives–a complicated area that generates numerous questions. In this episode, Heather Horn was joined by Bret Dooley and Chris Gerdau from PwC’s National Office to dive into the complexities of applying hedge accounting to foreign currency hedges.In this episode, you will hear them discuss:1:02 - An overview of foreign currency accounting 10:35 - Hedging of forecasted foreign currency transactions 18:26 - Net investment hedging and excluded components (“forward points”)27:01 - What to focus on with hedges of foreign currency denominated debt31:37 - Final advice and resources for more information Want to learn more? Listen to other episodes in our derivative toolkit series Do I have a derivative? and Hedging debt with derivatives, and refer to our Derivatives and hedging and Financial statement presentation guides. Bret Dooley is a Deputy Chief Accountant in PwC’s National Office and the financial instruments accounting leader. He has over 25 years of experience specializing in the financial services, banking, and capital markets industries. Bret focuses on emerging financial reporting issues relating to financial instruments, developing interpretive guidance, and assisting clients in resolving complex accounting matters.Chris Gerdau is a partner in PwC’s National Office specializing in accounting for financial instruments and banking-related topics. Chris also conducts technical reviews of SEC filings and provides technical support to PwC’s practice offices. With over 25 years of experience, Chris’s client service expertise includes the banking, capital markets, and insurance industries.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 take 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 derivatives–a complicated area that generates numerous questions. In this episode, Heather Horn was joined by Bret Dooley and Chip Currie from our National Office to dive into the complexities of accounting for hedges of debt.In this episode, you will hear them discuss:1:30 - The economics of debt issuance and risk management decisions4:01 - How derivatives fit into these decisions8:55 - What to think about from a hedge accounting perspective11:30 - Cash flow and fair value hedge models20:46 - The impact of debt not denominated in your functional currency 24:03 - Advice for dealing with the complexities of applying hedge accountingWant to learn more? Listen to the first episode in our derivative toolkit series, Do I have a derivative?, and refer to our Derivatives and hedging and Financial statement presentation guides. Stay tuned for more insightful episodes in the coming weeks.Bret Dooley is a Deputy Chief Accountant in PwC’s National Office and the financial instruments accounting leader. He has over 25 years of experience specializing in the financial services, banking, and capital markets industries. Bret focuses on emerging financial reporting issues relating to financial instruments, developing interpretive guidance, and assisting clients in resolving complex accounting matters.Chip Currie is a Partner in PwC’s National Office with over 25 years of experience assisting companies in resolving complex business and accounting issues. He concentrates on the accounting for financial instruments under both current and emerging standards and works with many of the firm's largest financial services clients and a number of non-financial service clients on treasury-related 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 our Toolkit podcast series, we take 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 derivatives – a complicated area that generates numerous questions. In this episode, Heather Horn was joined by Bret Dooley and Chris Gerdau from our National Office to dive into how to identify derivatives, explaining how to navigate through the definition, scope exceptions, and embedded derivative analysis. In this episode, you will hear them discuss:1:30 - How broad the definition of a derivative is and lesser known examples4:21 - Applying the three criteria needed to meet the definition14:15 - Understanding the scope exceptions 25:45 - What you need to know about the criteria for bifurcating embedded derivatives32:00 - Common examples of embedded derivatives and “hidden” features that need to be assessed  35:10 - A summary of key takeaways and an update on derivative standard settingWant to learn more? Refer to our Derivatives and hedging guide and our Financial statement presentation guide, and stay tuned for more insightful episodes in the coming weeks.Bret Dooley is a Deputy Chief Accountant in PwC’s National Office and the financial instruments accounting leader. He has over 25 years of experience specializing in the financial services, banking, and capital markets industries. Bret focuses on emerging financial reporting issues relating to financial instruments, developing interpretive guidance, and assisting clients in resolving complex accounting matters.Chris Gerdau is a partner in PwC’s National Office specializing in accounting for financial instruments and banking-related topics. Chris also conducts technical reviews of SEC filings and provides technical support to PwC’s practice offices. With over 25 years of experience, Chris’s client service expertise includes the banking, capital markets, and insurance industries.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 take 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 leasing–a multifaceted area that generates numerous questions. In this episode, Heather Horn was joined by Jillian Pearce and Marc Jerusalem from our National Office to dive into how to detect potential embedded leases in service or supply contracts and assess contract terms in the context of the leasing criteria.In this episode, you will hear them discuss:1:28 - The definition of a lease4:53 - How to think about the “in exchange for consideration” part of the definition and “free” leases10:34 - The identified asset criteria and “floating” leases15:47 - The substitution rights criteria and how to assess the ability to economically benefit from substitution20:52 - Common questions on understanding the right to substantially all economic benefits criteria27:03 - The right to direct the use of the asset criteria and predetermined rights38:07 - Common examples where embedded leases are found and final advice Want to learn more? Listen to our previous podcasts in our Leasing toolkit series on demystifying sale-leasebacks and build-to-suit arrangements, private company adoption and how to get lease measurements and modifications right. Jillian Pearce is a Partner in PwC's National Office, providing advice on financial instruments and other technical accounting issues to power and utilities clients. She was a Professional Accounting Fellow in the Office of the Chief Accountant at the SEC, and has over 15 years of auditing experience.Marc Jerusalem is a 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.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 take 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 leasing–a multifaceted area that generates numerous questions. In this episode, Heather Horn was joined by Chad Soares and Marc Jerusalem from our National Office to breakdown the complexities of sale-leaseback transactions and build-to-suit lease arrangements.In this episode, you will hear:1:24 - An overview of sale-leaseback transactions, including how the accounting changed in the updated leases standard7:59 - A deeper dive into meeting the risks and rewards of ownership criteria and the treatment of purchase and put options  18:50 - Accounting for sale-leasebacks and questions about fair value24:50 - What to do when transactions don’t qualify for sale-leaseback accounting31:10 - An overview of build-to-suit arrangements and changes from the more form driven prior guidance 39:42 - Things to look out for in sale-leaseback and build-to-suit transactions42:18 - Final advice for dealing with these complex arrangementsWant to learn more? Listen to our previous podcasts in our Leasing toolkit series on private company adoption and how to get lease measurements and modifications right. Chad Soares is a partner in PwC's National Office focused on leasing and financing arrangements. He was a primary author of PwC’s Leases guide and continues to contribute to a variety of thought leadership related to leasing and financial instruments.Marc Jerusalem is a 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.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 take 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 leasing–a multifaceted area that generates numerous questions. In this episode, Heather Horn was joined by C.J. Finn, a partner in PwC’s private company services group and Chad Soares and Marc Jerusalem from our National Office to discuss lessons learned and key judgments that need to be made for private company adoption.In this episode, you will hear:1:12 - An overview of an effective adoption approach6:03 - What previous adopters have learned about allocating the appropriate resources 11:19 - The definition of a lease under ASC 842 and recognition of lease and non-lease components20:24 - Transition and practical expedients 29:18 - FASB standard setting activity to ease the burden of implementation35:55 - Common legacy accounting issues that are challenging under the new standard40:40 - Final advice on how to drive an effective implementation of ASC 842Want to learn more? Listen to our previous podcast in our Leasing toolkit on how to get lease measurements and modifications right. Also, see our flowchart to think through lease classification in our Leases guide.C.J. Finn, PwC’s private company accounting change leader, has 18 years of experience working with public and private companies. He has advised large multinational clients on complex accounting areas, SEC reporting, system development, mergers and acquisitions, and purchase accounting and valuation.Chad Soares is a partner in PwC's National Office focused on leasing and financing arrangements. He was a primary author of PwC’s Leases guide and continues to contribute to a variety of thought leadership related to leasing and financial instruments.Marc Jerusalem is a 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.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 take 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 leasing–a multifaceted area that generates numerous questions.In this episode, Heather Horn was joined by Suzanne Stephani and Marc Jerusalem, Directors from PwC’s National Office, to discuss the accounting guidance for some of the primary measurement and lease modification judgments that need to be made.In this episode, you will hear:2:20 - Common questions related to lease measurement7:38 - Considerations around variable payments 10:08 - Key concepts and tools when accounting for lease incentives 16:38 - Determining the lease term when there are automatic renewals21:59 - The importance of periodic reassessment of the lease term for lessees31:10 - How to select the correct discount rate37:09 - Lease modifications: what they are and how to account for themWant to learn more? Listen to our previous podcast, Full disclosure: Leases, and read our chapter on modification and remeasurement of a lease in our Leases guide.Suzanne Stephani is a Director in PwC’s National Office specializing in the application and interpretation of the accounting guidance related to financing and leasing transactions as well as the cash flow statement.Marc Jerusalem is a Director in PwC’s National Office specializing in leasing. Marc consults with clients on complex lease accounting issues and is a contributor to many related PwC National Office publications.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 this episode, Heather Horn was joined by Rich Goode from PwC's ESG practice and Jillian Pearce from PwC's National Office to focus on the accounting and reporting for carbon offsets and renewable energy credits (RECs), including how they’re addressed in the SEC’s climate disclosure proposal.In this episode, you will hear:1:49 - An overview of RECs and carbon offsets7:37 - What is renewable energy?8:49 - Rich’s RSIO framework - reduce, switch, innovate, offset 11:56 - A refresher on scope 1, 2, and 3 greenhouse gasses in the GHG Protocol and how RECs and carbon offsets can be used to offset them14:49 - RECs and carbon offsets in the SEC climate disclosure proposal23:12 - Accounting for RECs and carbon offsets34:27 - Why companies using only RECs and carbon offsets may be missing out36:58 - Final advice for companies on use of offsets and RECsWant to learn more? Read our publication Accounting for your company’s zero-carbon future. And listen to our previous podcasts where we deep dive into GHG scope 1, scope 2, and scope 3. Rich Goode is a principal in PwC's ESG practice where he assists clients in the technology, media, and telecommunications sectors navigate key environmental, social, and governance issues. Leveraging 30 years of experience, Rich also currently serves as an Adjunct Lecturer at Harvard University.Jillian Pearce is a Partner in PwC's National Office, providing advice on financial instruments and other technical accounting issues to power and utilities clients. She was a Professional Accounting Fellow in the Office of the Chief Accountant at the SEC, and has over 15 years of auditing experience.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.