Send us a Text Message. We kick off our miniseries on accounting for financing transactions with a focus on share repurchases. We provide an overview of the different methods and reasons companies may repurchase their own shares as well as the accounting implications. Spoiler alert – the type of arrangement really matters as it dictates the accounting. In this episode, we discuss: 3:38 – An overview of the different methods and reasons companies repurchase shares 11:43 – Accounting implications depending on the method of repurchase: 11:55 – Spot repurchases 15:07 – 10B5-1 plans 16:26 – Forw ..read more

While the SEC has stayed its climate disclosure rule for now, our team is still fielding many questions as preparers work toward complying with global sustainability reporting regulations. In this episode, host Heather Horn sits down with PwC National Office partners Kevin Vaughn, Diana Stoltzfus, and Valerie Wieman to break down some frequently asked questions on the SEC climate-related disclosures rules.  In this episode, we discuss: 2:05 - The implications of the SEC staying the new climate disclosure rules, and how the rules fit into an environment with multiple reporting frameworks ..read more

This episode provides an overview of new FASB income tax guidance requiring disaggregated information about a reporting entity’s effective tax rate reconciliation as well as income taxes paid. The FASB’s updates are intended to benefit investors by providing more detailed income tax disclosures that may be useful in making capital allocation decisions. In this episode, we discuss: 0:20 - Background on and an overview of the new guidance 6:50 - Disaggregated rate reconciliation disclosures  26:16 - Disaggregated income taxes paid disclosures 33:15 - Other changes to e ..read more

Companies subject to multiple sustainability reporting regulations are sorting through how best to meet each framework’s requirements in an effective and efficient manner. In this episode, host Heather Horn sits down with Valerie Wieman, PwC National Office Partner, to discuss the concepts of interoperability and equivalence across global sustainability reporting frameworks as well as the importance of a data-driven assessment. In this episode, we discuss: 2:31 - Defining the concepts of interoperability and equivalence 3:29 - What a “data first” approach means when it comes to preparing for ..read more

The final episode in our lease accounting miniseries focuses on embedded leases. Although it may not be explicitly stated, your contract may contain a lease that needs to be accounted for. We cover some of the key considerations and common difficulties. In this episode, we discuss: 1:35 - Embedded leases, including examples 7:43 - The model used to identify an embedded lease 08:56 - Identified asset considerations 16:52 - Control considerations 30:18 - Identification of lease versus non-lease components and allocation of consideration For more information on these topics, read chapter 2 ..read more

A critical step in getting ready for new sustainability reporting requirements is building a comprehensive governance framework. In this episode, host Heather Horn sits down with Stephen Parker and Matt DiGuiseppe of PwC’s Governance Insights Center to discuss the new regulatory environment and what it means for board members looking to discharge their oversight responsibilities effectively and management looking to get the board ready. In this episode, we discuss: 2:21 - Reactions to new sustainability reporting frameworks from senior management and boards 6:13 - Strategies for managing the ..read more

In this next episode in our miniseries on lease accounting, we focus on lessee accounting for real estate leases. From lease incentives to build-to-suit arrangements and more, we cover some of the key areas that lessees should consider in accounting for real estate leases.  In this episode, we discuss: 03:25 - Lease incentives 08:23 - Distinguishing between lessee and lessor assets 11:28 - Accounting for lessee assets 13:50 - Accounting for lessor assets 17:20 - Determination of the lease commencement date 19:06 - Multiple units of account in a lease 21:51 - Build-to-suit arrangements ..read more

While the changing global sustainability reporting landscape may pose challenges for preparers, there continue to be opportunities for companies in every industry to take a holistic approach to disclosure – whether mandatory or voluntary. In this episode, host Heather Horn sits down with Marc Siegel, PwC National Office partner, for a discussion of the key focus areas and action steps for C-suite executives as they ready their companies for the future of global sustainability reporting. In this episode, we discuss: 2:36 - How the market has spoken – and determined that sustainability disclo ..read more

We continue our miniseries on lease accounting. In this episode, we discuss “day 2” lease accounting, focusing on lease remeasurements, subleasing, and lease impairments. In this episode, you’ll hear a discussion of: 01:18 - Events requiring remeasurement 02:17 - Full lease remeasurements 06:19 - Partial lease remeasurements 7:47 - Lease term and purchase option remeasurements 13:44 - Lease modification remeasurements 21:34 - Subleasing arrangements 25:58 - A refresher on ROU asset impairments For more information on modifications and remeasurements of leases, read chapter 5 of our Lease ..read more

The International Sustainability Standards Board (ISSB) under the IFRS Foundation last year released IFRS S1 and IFRS S2, representing a step toward the organization’s goal of achieving a comprehensive global baseline of sustainability disclosures. But implementing such a global baseline effectively goes beyond simply setting standards – it requires a new set of capabilities, infrastructure, knowledge, and talent in economies around the world. New sustainability reporting requirements in jurisdictions around the world have resulted in the need for companies to take stock of their own capacity ..read more