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.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.

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.

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 Mike Coleman, partners in PwC’s National Office, to discuss step four of revenue recognition: allocating the transaction price.In this episode, you will find:01:19 - The core objective of step four: allocating based on relative standalone selling price04:03 - Common approaches to estimating standalone selling price10:47 - How to apply the residual approach (for use in limited circumstances)15:03 - Special considerations for the allocation of discounts and variable consideration20:11 - The importance of consistency26:11 - Key tips about making judgments in your process of estimationWant to learn more? Listen to our previous Revenue toolkit episodes in which we discuss how to identify the contract, identify performance obligations, and determine the transaction price.Read chapter 5, Allocating the transaction price, in our Revenue from contracts with customers 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.Mike Coleman is a partner in PwC's National Office with over 30 years of experience. He specializes in accounting for revenue and software arrangements. Prior to his time in National, Mike was an audit partner in the firm's NY Metro assurance practice serving technology clients. In addition, he has been one of the firm's represented the firm on the AICPA Software Task Force. 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 Alexandra Pascu from PwC’s National Office, to discuss step three of revenue recognition: determining the transaction price.In this episode, you will find:3:18 - Determining whether the contract contains significant financing components7:52 - How noncash and variable consideration impact the transaction price12:32 - Methods for estimating variable consideration, and considering the measurement constraint19:54 - The key judgments needed for service level agreements or similar arrangements24:54 - Evaluating payments to customers as a form of variable consideration, and how they impact the transaction price26:58 - Key takeaways: step three in a nutshell, and additional resourcesWant to learn more? Read the Determining the transaction price chapter in our Revenue guide.Listen to our previous podcasts on Variable consideration: How it impacts your top and bottom line and Payments to customers? Receipts from vendors? Help!.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.Alexandra Pascu is a director in PwC’s National Office with over 9 years of experience. She focuses on revenue recognition, software costs, stock-based compensation, and inventory. Prior to this role, Alexandra  led audits of companies ranging from small emerging growth companies to public multinationals.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.This week Heather Horn was joined by Angela Fergason and Mike Coleman, partners in PwC’s National Office, to discuss revenue step two: identifying the performance obligations. Angela and Mike share the key points to consider carefully, especially because this step dictates the units of account for the entire contract.In this episode, you will hear:4:57 - How to find all relevant promises to the customer, and how to treat implied promises9:29 - The criteria utilized to assess whether a good or service is “distinct”16:30 - How to account for promises to transfer a series of distinct goods or services22:05 - How to treat a customer’s option to purchase additional goods or services 27:20 - How selling a “solution” may comprise multiple performance obligations, and other key final remindersWant to learn more? Read chapter 3, Identifying performance obligations, in our Revenue from contracts with customers 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.Mike Coleman is a partner in PwC's National Office with over 30 years of experience. Mike 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. 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 one of revenue recognition: identifying the contract. While it may appear straightforward, there are some judgments to be made and getting it right is critical for the rest of the revenue recognition process.In this episode, you will find:03:10 - Determining the applicability of accounting guidance for each arrangement12:19 - The five criteria that determine whether a contract exists for accounting purposes15:28 - Collectibility considerations22:10 - What to do if the criteria for contract existence are met after the initial assessment24:38 - How enforceable rights and obligations, rather than a stated term, dictate the contract term29:49 - Key takeaway: the importance of not taking shortcuts through the step one assessmentWant to learn more? Read Chapter 2 of our Revenue guide on scope and identifying the contract.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 partner in PwC’s National Office and has over 30 years of experience. He has expertise in financial reporting and extensive experience serving board, C-suite, and senior management level executives across a variety of industries and geographies both in the US and internationally.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 Talking ESG podcast series, we give an end-to-end look at what it takes to build effective ESG reporting in today’s environment. From investor to stakeholder expectations, from global frameworks to data, process, and controls—there’s something in it for everyone.This week Heather Horn sat down with Steve Bochanski, PwC’s Climate Risk Modeling leader, to discuss ESG reporting with a focus on the Task Force on Climate-related Financial Disclosures (TCFD) and how it may affect your company.Topics include:6:09 - What is the TCFD? The Task Force on Climate-related Financial Disclosures was established to focus on providing stakeholders with information about climate-related risks. Heather and Steve talk through the background of the TCFD and how it’s different from other ESG reporting frameworks.10:48 - Making a risk assessment. Most listeners will be familiar with the physical risks associated with climate change, and many companies already have processes in place to address them. But there’s also transition risk, which is less well-understood. Steve and Heather discuss how to get started assessing both of these risk categories and how correctly identifying risks upfront can improve your reporting.19:54 - Who is adopting the TCFD recommendations? The Task Force has structured its guidance for broad adoption across industries. Steve walks listeners through the steps involved in adoption and who should be involved from the organization.28:29 - Stakeholders and data quality. Most organizations have done more work than they think in their focus on conventional risk assessment processes that can be useful in a TCFD disclosure. Steve explains how companies can use these processes to accelerate their climate reporting process. Steve and Heather also talk through the importance of data quality.36:57 - Advice for listeners. Steve and Heather discuss some practical advice for companies that have adopted or are planning to adopt aspects of the TCFD framework. Steve provides his perspective on what the future holds for climate-related disclosures.Want to learn more?Listen to our previous podcasts in this series, Talking ESG: How SEC proposals may shape future reporting, Talking ESG: A focus on the Global Reporting Initiative, and Talking ESG: How new EU rules may impact your reporting.Steve Bochanski leads PwC's US Climate Risk Modeling team, comprising actuaries, financial engineers, and climate scientists, and other actuarial activities in the ESG space. He also leads PwC’s Actuary of the Future initiative globally, focusing on actuarial modernization, upskilling, and corporate risk modeling beyond the insurance sector.  Heather Horn is a Deputy Chief Accountant in PwC’s National Office and leader of the thought leadership group, 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. Transcripts available upon request for individuals who may need a disDid you enjoy this episode? Text us your thoughts and be sure to include the episode name.

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. This week we focus on the presentation and disclosure requirements for commitments and contingencies. Jay Seliber, PwC National Office partner, is back in the guest seat to share helpful insights and key reminders with our host, Heather Horn. Topics include:1:22 - Background. Jay and Heather discuss the scope of the commitments and contingencies guidance, including discussion of guarantees.4:43 - Presentation on the balance sheet and income statement. Jay walks listeners through when commitments need to be recognized. He also covers the contingency model and related presentation, including insurance recoveries. 20:03 - Disclosure requirements. Jay takes us through the disclosure requirements for commitments and contingencies in the financial statements, including some of the areas that require more judgment. 39:42 - Closing remarks. Jay closes with areas of GAAP where disclosures of other types of commitments are required. Heather tries to stump Jay with some niche accounting questions.Want to learn more?  Financial statement presentation guide Chapter 23: Commitments, contingencies, and guaranteesJay 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.  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.