Pwc's Cfodirect Podcast

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.In each episode of our Year-end toolkit series, our guests share insights on key areas of the year-end accounting and reporting process. The conversations are relevant for all finance teams, even if it’s not year-end close time. And it’s relevant even for those not engaged in the company’s closing process – the episodes have something for everyone.To kick off the series, host Heather Horn is joined by Tim Carey, PwC National Office leader, and Kyle Moffatt, PwC National Office Professional Practice leader, to reflect on the key developments of 2024 from their perspectives and look ahead at what’s to come in 2025. In this episode, we discuss:1:45 – External factors impacting accounting and reporting, including the presidential election and the recent AICPA/SEC conference10:11 – Supreme Court case rulings impacting financial regulation and rulemaking from the year15:17 – What’s on the horizon for cryptocurrency accounting

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.This final episode of our 2024 SEC comment letter podcast miniseries discusses non-GAAP measures. Non-GAAP measures are commonly used by companies as supplements to their financial statements to deepen investors’ understanding of their performance or financial condition. Given their importance, not only does non-GAAP top the list this year, but it’s been a top focus area for the SEC staff in the last several years, and we expect that trend to continue. We discuss the issues most frequently raised by the SEC staff and offer advice to preparers for getting ahead of them.  In this episode, we discuss: 3:11 – Overview of non-GAAP comment letter trends 9:09 – Insights into comments on basic compliance areas 22:24 – Individually tailored accounting principles   27:27 – Adjustments for cash operating expenses that are normal and recurring41:17 – Controls over non-GAAP measures46:12 – Advice and other considerations when respond

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.PwC provides a summary of the latest accounting, financial reporting, and regulatory updates to support your quarterly reporting.It is that time of the year again. As 2024 comes to an end, the focus of many companies turns to their annual reporting process. We begin this edition of The quarter close by providing general income tax reminders and highlighting new guidance that will be effective for the first time this year.In regulatory developments, we provide the latest updates on sustainability reporting under the California climate disclosure laws as well as updates on frameworks outside of the US. And although the impact of the recent election remains to be seen, we’ve summarized expected impacts to keep you informed.As expected, the FASB made significant progress on its agenda by issuing final guidance on both the disaggregation of income statement expenses and induced conversions of convertible debt instruments proj

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.PwC recently released the results of our 2024 Global Investor Survey, which was conducted to better understand investor expectations and concerns about corporate reporting and the evolving business landscape. The annual survey results highlight the importance of transparency in technology use, especially Artificial Intelligence (AI), and the need for companies to adapt to global threats, climate change, and regulatory developments.This week, host Heather Horn is joined by Nadja Picard, PwC Global Reporting Leader, to break down the results and discuss the sometimes differing expectations between companies and investors. They also address how companies can better meet investor expectations through both action and communication.In this episode, we discuss:01:31 – Purpose of the 2024 global investor survey and demographics of survey participants05:11 – Highlights from the global investor survey, including what surprised our

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.This next episode of our 2024 SEC comment letter podcast miniseries discusses Foreign Private Issuers (FPIs). Many of the considerations we talk about for other SEC filers also apply to FPIs; however, there can be some differences and added complexities. We discuss the issues most frequently raised by the SEC staff, including those unique to FPIs, and offer advice to preparers for getting ahead of them. In this episode, we discuss:7:24 – Comment letter trends specific to FPIs, including those related to: 8:55 – Non-GAAP performance measures16:15 – Segment reporting21:32 – Revenue25:01 – Management’s Discussion and Analysis30:29 – Financial instruments41:39 – FPI status re-assessment44:53 – IFRS segment reporting considerations  47:45 – Other accounting and reporting reminders related to FPIsFor more information, see our full analysis of SEC comment letter trends. Also, check out our other episodes in this miniseries:SEC

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.In the sixth episode of our GHG miniseries on the building blocks of greenhouse gas (GHG) emissions reporting, we conclude our discussion on step 4: measure greenhouse gas emissions with scope 3 emissions. Host Heather Horn is joined again by Marcin Olewinski, an Assurance partner, and Chris Ostermann, a director in PwC’s Sustainability Services Group, to provide an introduction to scope 3 emissions, including an overview of their 15 categories downstream and upstream as well as the complexities in measuring these emissions. They share practical advice for measuring these emissions, which often yield more challenges than scope 1 and scope 2.In this episode, we discuss:01:54 – Scope 3 emissions and their related upstream and downstream categories10:49 – Double counting scope 3 emissions and its impact on greenhouse gas emissions reporting15: 33 – The measurement requirements of scope 3 emissions, including ESRS and ISSB f

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.This next episode of our 2024 SEC comment letter podcast miniseries discusses Management’s Discussion and Analysis (MD&A). Investors are often focused on MD&A as they look to understand management’s commentary on the results of the business, future trends, uncertainties, and more – making this an area that also frequently gets the attention of the SEC staff. We discuss the issues most frequently raised by the SEC staff and offer advice to preparers for getting ahead of them.In this episode, we discuss:2:21 – An overview of SEC comment letter trends related to MD&A 10:57 – The results of operations 20:43 – Liquidity and capital resources27:19 – Critical accounting estimates35:16 – Final reminders and best practices related to MD&A  For more information, see our full analysis of SEC comment letter trends. Also, check out our other episodes in this miniseries:SEC comment letters – What’s trending in 20242024

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.This next episode of our 2024 SEC comment letter podcast miniseries discusses segment reporting.  Segment reporting is an important disclosure for investors as it provides information about the different types of business activities in which a reporting entity engages and the different economic environments in which it operates – making this an area that frequently gets the attention of the SEC staff. We discuss the issues most frequently raised by the SEC staff and offer advice to preparers for getting ahead of them. In this episode, we discuss: 2:36 – An overview of SEC comment letter trends related to segment reporting11:49 – Identifying operating segments15:13 – Aggregation of operating segments 16:36 – Entity-wide segment disclosures 19:18 – Multiple measures of segment profit or loss20:55 – Reconciliations to segment profit or loss 23:18 – Considerations when adopting the FASB’s new segment reporting guidance35:21

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.In our fifth episode of our miniseries on the building blocks of greenhouse gas (GHG) emissions reporting, we discuss step 4: measure greenhouse gas emissions, continuing with scope 2 emissions. Host Heather Horn is joined again by Marcin Olewinski, an Assurance partner, and Chris Ostermann, a director in PwC’s Sustainability Services Group, to kick off the second of three episodes focused on measuring greenhouse gases. They will share more of what they’re seeing in practice working with companies who are calculating these emissions, a must listen given the complexity of the challenges can grow moving from scope 1 to scope 2 emissions.In this episode, they discuss:02:05 – Scope 2 emissions — how they are different from scope 1 emissions and the formula for calculating them06:39 – Location-based and market-based methods for calculating scope 2 emissions16:02 – Bundled and unbundled instruments and their related challenges

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.This next episode of our 2024 SEC comment letter podcast miniseries discusses business combinations. Business combination accounting can be complex, the required disclosures are comprehensive, and these are not routine transactions for most companies – all making this a challenging area that frequently gets the attention of the SEC staff. We discuss the issues most frequently raised by the SEC staff and offer advice to preparers for getting ahead of them.In this episode, we discuss:2:02 – An overview of SEC comment letter trends related to business combinations5:14 – Determining whether a transaction is an asset acquisition or business combination7:34 – The definition of a “business” in US GAAP as compared to SEC rules9:23 – Comments related to omitted disclosures12:39 – Pro forma disclosures and financial statements of acquired or to-be-acquired businesses25:45 – Other reminders and areas of focus related to business co

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.In the fourth episode of our miniseries on the building blocks of greenhouse gas (GHG) emissions reporting, we discuss step 4: measure greenhouse gas emissions, starting with scope 1 emissions. Host Heather Horn and frequent ESG podcast guest Marcin Olewinski, an Assurance partner, are joined by Chris Ostermann, a director in PwC’s Sustainability Services Group, to kick off the first of three episodes focused on measuring greenhouse gases. They will share what they’re seeing in practice working with companies who are calculating these emissions, including successes and (preventable) misapplications.In this episode, they discuss:02:24 – Scope 1 GHG emissions, including identifying sources and a complete inventory07:05 – Methods for measuring scope 1 emissions and how to select a measurement approach16:56 – Challenges associated with collecting data inputs22:53 – Explaining emissions factors and the challenges in selecting

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.In this next episode of our 2024 SEC comment letter miniseries, we discuss accounting for revenue. Revenue is the top line for a reason; it’s closely watched by investors and therefore, the SEC staff as well. From variable consideration to disaggregated revenue disclosure, we discuss the issues most frequently raised by the SEC staff and offer advice to preparers for getting ahead of them.In this episode, we discuss:2:25 – An overview of SEC comment letter trends related to revenue12:20 – Significant judgements and estimates in determining the transaction price23:57 – Timing or pattern of the transfer of control28:10 – Disaggregated revenue disclosures40:45 – Other reminders and areas of focus related to revenue44:22 – Industry-specific considerationsFor more information, see our full analysis of SEC comment letter trends, our Revenue from contracts with customers guide, and Chapter 33 of our Financial statement presenta

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.In the third episode of our miniseries on the building blocks of greenhouse gas (GHG) emissions reporting, we discuss step 3: determine operational boundaries. Host Heather Horn is joined again by Marcin Olewinski, an Assurance partner, and Kelsey Pizza, a senior manager in PwC’s National Office, who illustrate the importance of correctly identifying operational boundaries and the impact on the accuracy of GHG reporting. They also discuss how it’s a critical step to helping organizations clearly define and understand the scope of their emissions.Because different frameworks may prescribe different approaches while others provide some flexibility, it is key to understand your reporting requirements (as discussed in the first episode in this miniseries, Talking GHG: Reporting requirements for greenhouse gas emissions). We’ll highlight different approaches and the impacts (sometimes more significant than one would expect) t

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.We are kicking off our miniseries on 2024 SEC staff comment letters, helping to inform you on the latest trends as you gear up for year end. In this episode we share an overview of the 2024 comment letter trends, as well as insights into the SEC staff’s key priorities.In this episode, we discuss:1:56 – An overview of the SEC comment letter process14:19 – 2024 SEC comment letter themes15:31 – Key SEC staff focus areas related to management’s discussion and analysis18:59 – Key SEC staff focus areas related to non-GAAP measures21:37 – Other reminders and areas that preparers should focus on moving into year endFor more information, see our full analysis of SEC comment letter trends. Additionally, follow this podcast on your favorite podcast app for more episodes. Kyle Moffatt is PwC’s Professional Practice leader, leading a team responsible for working with standard setters and regulators as well as delivering brand-definin

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.This week, host Heather Horn is joined by a chief sustainability officer (CSO), whose impressive background in paleoclimate geology has propelled her into the world of sustainability. Allyson Anderson Book from Baker Hughes provides a practical perspective on her sustainability journey as a CSO. She shares the challenges overcome and perseverance needed in getting to the accomplishments – decarbonization and good reporting on the company’s efforts.In this episode, they discuss:6:23 – A CSO’s view on the role of reporting11:51 – Background on the company and how it is thinking about its emissions profile and its customers’24:55 – The importance of prioritizing data fidelity and management29:56 – What to think about when accounting for emissions33:31 – The pros and cons of absolute versus intensity measurement of emissions46:02 – Expected results when stakeholders are involved in sustainability efforts50:07 – Advice on nav

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.We wrap up our miniseries on loans and investments with a discussion of the accounting for equity interests, a topic that can impact companies across all industries.In this episode, we discuss:2:02 – Equity interests in scope of ASC 321, Investments—Equity Securities13:19 – Determining whether an equity interest has a readily determinable fair value15:10 – An overview of the “measurement alternative,” including:22:27 – Impairment of equity interests25:31 – Identifying observable transactionsFor more information, see chapter 2 of our Loans and investments guide. Also, check out our other episodes in this miniseries:Applying the CECL model to financial asset credit lossesAccounting for debt securities held by corporatesAccounting for loan receivables by corporatesAdditionally, follow this podcast on your favorite podcast app for more episodes.Chip Currie is a partner in PwC’s National Office with nearly 30 years of experie

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.At the intersection of two trending topics, AI and sustainability, there are a myriad of both costs and benefits to consider. Host Heather Horn is joined by Scott Likens, PwC Global Chief AI Engineer, to discuss the environmental impact of AI and the balance between AI's benefits and its environmental footprint.In this episode, they discuss:3:17 – How AI is impacting sustainability8:54 – Why AI and sustainability aren’t necessarily opposing forces17:28 – Practical examples of utilizing AI to optimize energy usage28:22 – The broader benefits of using AI to impact sustainability31:05 – Balancing AI’s benefits with its environmental footprint 38:32 – Advice for both companies and individuals leveraging AILooking for more on AI? Check out PwC’s Artificial Intelligence services as well as resources on responsible AI, including What is responsible AI and how can it help harness trusted generative AI?Scott Likens is the Gl

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.We continue our miniseries on loans and investments with a discussion of the current expected credit losses (CECL) impairment model, applicable to a broad range of financial assets. In this episode, we discuss:3:42 – A refresher on the CECL model8:02 – Impact of the current economic environment on credit losses23:43 – Monitoring and governance of credit losses26:46 – SEC comment letters and other activity related to CECL30:49 – FASB developments related to CECL, including purchased financial assetsFor more information, see chapter 7 of our Loans and investments guide. Also, check out our other episodes in this miniseries, Accounting for debt securities held by corporates and Accounting for loan receivables by corporates. Additionally, follow this podcast on your favorite podcast app for more episodes. Catherine Espino is a partner in PwC’s National Office with 20 years of experience serving large financial institutions,

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.The term “ESG” has been used for over two decades, including in this podcast miniseries title. Host Heather Horn sat down with guest Matt Sekol, Sustainability Global Blackbeltand author of ESG Mindset: Business Resilience and Sustainable Growth, to revisit the complexities of ESG and how companies can rethink the concept to not only build better resilience for the long term, but also find value in reporting.In this episode, they discuss:3:42 – The key messages of ESG Mindset and redefining “ESG”9:44 – How sustainability reporting can contribute to change12:26 – What leaders can do to leverage ESG in a material way20:06 – How companies can strike a balance between ESG and the success of the business35:19 – The interconnectedness of ESG and the macroeconomic environment45:12 – Key takeaway for addressing systemic ESG issuesLooking for the latest developments in sustainability reporting? Follow this podcast on your favorit

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.We continue our miniseries on loans and investments with a discussion of the accounting by corporate entities for loan receivables, which can include items such as trade receivables and other receivables with customers, suppliers, employees and more.In this episode, we discuss:1:43 – The definition of a loan and types of loan arrangements3:18 – Recognition and measurement of loans7:40 – Classification and accounting for loans held for sale or held for investment 18:54 – Recording interest income on loans23:29 – An overview of loan impairmentsFor more information, see chapter 4 of our Loans and investments guide. Also, check out our other episode in this miniseries, Accounting for debt securities held by corporates. Additionally, follow this podcast on your favorite podcast app for more episodes.Chip Currie is a partner in PwC’s National Office with nearly 30 years of experience assisting companies in resolving complex bu