PwC's accounting podcast

Variable consideration in revenue contracts is more common than you might think, and the accounting for it can require  a considerable amount of judgment. To help make sure you have the right revenue recognition, we’ve asked Angela Fergason, a partner in our National Office, to join host Heather Horn to walk through the guidance. Topics include: 0:47 - The many forms of variable consideration. We begin with an overview of variable consideration under the new revenue guidance and share some common examples of the common types of variable consideration in a revenue contract. 6:25 - Estimating variable consideration. We cover the two methods for estimating variable consideration at contract inception: the “expected value” method and the “most likely amount” method.9:36 - Constraint on variable consideration. An estimate of variable consideration is subject to a constraint. Listen as Angela breaks down what exactly this means.15:49 - Exceptions for estimating variable consideration upfront. There are a few situations when you might not have to estimate variable consideration upfront. Angela walks through a few of the scenarios.23:24 - Revenue vs lease components. We frequently see contracts with revenue and lease components. Angela explains how the revenue and lease models differ when contracts have variable fees.25:38 - Reminders and disclosures. We close by wrapping-up with key takeaways and an overview of the multiple disclosure requirements. Want to learn more? See chapter 4 of PwC’s Revenue from contracts with customers guide.Angela Fergason is a partner in PwC's National Office with over 20 years of experience, specializing in accounting for revenue and employee compensation arrangements. She 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.Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With nearly 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.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.

2020 has brought us a global pandemic, an election, and adoption of some major new accounting standards. So what does it all mean for your EPS calculations? In this episode, John Horan, a PwC managing director in our national office, joins host Heather Horn to discuss some important EPS reminders for companies to think about for their year-end reporting. Topics include: 0:45 - Basic EPS: 2:13 - Participating securities—John describes what they are and why you may need to consider them in your EPS calculations.11:53 - Mezzanine securities—John walks through how having securities classified here impacts  EPS.16:58 - Diluted EPS:18:45 - Settlements in cash or shares—how it settles makes a difference to EPS - we give examples on each.23:08 - Liability classified warrants—warrants classified as liabilities can be dilutive to EPS - even in periods of loss.26:09 - New convertible debt standard—how does the new FASB standard on liabilities and equity change the presumption of share settlement? John brings you the inside scoop.Want to learn more? See chapter 7 of our Financial statement presentation guide and listen to our podcast on Earnings per share: 5 things to know.John Horan is a managing director in PwC’s National office where he assists clients with complex accounting issues in the areas of foreign currency, liabilities and equity, earnings per share, and derivatives and hedging. John specializes in large capital transactions and initial public offerings.Heather Horn is PwC’s National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With nearly 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.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 financial statements users have always placed a lot of importance on the statement of cash flows, the focus has sharpened in today’s turbulent environment. Listen as host Heather Horn and Suzanne Stephani, a director in PwC’s national office, discuss frequently asked questions and share useful reminders for those in the process of preparing the cash flow statement for their year-end reporting. Topics include:0:16 - Debt restructuring. Debt restructuring often brings fees. We look at a few reporting scenarios and discuss the presentation of these fees. 7:04 - Borrowings and repayments under revolvers. Some companies are drawing down on their revolvers as a way to access liquidity. We discuss whether the borrowings and repayments under a revolver should be presented gross or net on the cash flow statement and share other key reminders.9:48 - Supply chain financing. As a result of liquidity struggles, companies have gotten creative with pushing out payment terms in a variety of ways—and this raises questions on the statement of cash flows. Through practical examples, we look at how these transactions should be presented and discuss the FASB’s project on the disclosure of supply chain finance programs.  16:38 - Lease modifications/terminations. During 2020, many companies made changes to their lease agreements, especially real estate leases. We talk through presentation considerations in this area. 18:42 - Sale of accounts receivables. What are the cash flow considerations when a company sells or factors their trade receivables? Suzanne explains.Have more cash flow presentation questions? Read our Financial statement presentation guide and listen to our podcast, Statement of cash flows: Back to basics. About our guestSuzanne Stephani is a director in PwC’s National Office specializing in the application and interpretation of the accounting guidance related to financing transactions.About our hostHeather Horn is PwC’s National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With nearly 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.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.