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.In this next episode of our series, we discuss accounting and reporting reminders and timely insights with some of the top technical leaders from our National Office. A one-stop shop for year end, we cover a variety of accounting and reporting topics from contract modifications to financing transactions to segments and many things in between.In this episode, we discuss accounting and reporting reminders related to:2:03 – Natural disasters6:04 – Highly inflationary economies8:20 – Tax regulatory landscape12:07 – Close calls on impairments and other accounting estimates14:13 – Re

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 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.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.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 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.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,

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 favorite podcast app and subscribe to our weekly newsletter to stay in the loop for the latest th

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 business and accounting issues. He concentrates on the accounting for financial instruments

Impact accounting is the process of attributing monetary value to disparate pools of datapoints across sustainability topics with the intent of creating comparability to drive investment decisions. This week, host Heather Horn is joined by a special guest from the International Foundations of Valuing Impacts (IFVI), CEO and President, Rob Zochowski, to discuss the relatively new concept of impact accounting and how it can complement existing sustainability reporting for business decision-making. In this episode, they discuss:3:24 – Background on impact accounting and IFVI8:10 – The concept of impact valuation and its role in assigning monetary value to sustainability metrics15:18– Getting global feedback on impact accounting24:12– How impact accounting both measures and values corporate impacts to drive better decision-making29:48 – Leveraging impact accounting for both reporting and decision-making38:02 – Challenges in assigning monetary value to diverse impacts For more information on impacting accounting,

We kick off our miniseries on loans and investments with an episode on accounting for debt securities for corporate entities. We discuss key considerations applicable to corporates and share insights on some of the more complex areas.In this episode, we discuss:5:31 – Identifying the applicable accounting guidance13:24 – Instruments that qualify as cash equivalents  22:07 – Classification of debt securities and the accounting implications31:36 – Valuation of debt securities36:33 – Financial statement presentation considerationsFor more information, see chapter 3 of our Loans and investments guide. Additionally, follow this podcast on your favorite podcast app for more episodes.Bret Dooley is a Deputy Chief Accountant in PwC’s National Office who leads teams focused on the financial services sectors and accounting for financial instruments. He has over 25 years of experience in the financial services, banking, and capital markets industries. Bret focuses on emerging financial reporting issues related to financ

In the second episode of our miniseries on the building blocks of greenhouse gas (GHG) emissions reporting, we discuss how to establish organizational 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 including the correct entities, assets, and operations through real world examples.Different frameworks may prescribe different approaches while others provide some flexibility so 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) that an organizational boundary can have on reporting.This episode discusses:2:48 – What it means to establish organizational boundaries 4:33 – The three organizational boundary approaches outlined by the GHG Protocol 13:48 – Practi

We continue our miniseries on foreign currency accounting with an episode on foreign currency remeasurement and translation. Foreign currency measurement is the process by which an entity expresses transactions whose terms are denominated in a foreign currency in its functional currency. Foreign currency translation is the process of expressing a foreign entity’s functional currency financial statements in the reporting currency. In this episode, we discuss: 03:09 – An overview of the accounting for foreign currency remeasurement and translation05:56 – Measurement of foreign currency transactions09:56 – Exchange rate considerations22:26 – Translating financial statement of foreign entities 29:00 – Releasing cumulative translation adjustments (CTA)For more information see chapters 4 and 5 of our Foreign currency guide. Also, check out our other episode in this miniseries, Foreign currency accounting – Determining functional currency. Additionally, follow this podcast on your favorite podcast app for more episo

This week we introduce a miniseries on the building blocks of greenhouse gas (GHG) emissions reporting. To kick off the miniseries, host Heather Horn is joined by Marcin Olewinski, an Assurance partner, and Kelsey Pizza, a senior manager in PwC’s National Office, to give an overview of the process and zero in on the first step, understanding reporting requirements. They highlight the GHG Protocol's foundational role and its similarities and differences with other standards.In this episode, they discuss:02:22 – Background on the building blocks of GHG emissions reporting04:30 – The history of the GHG Protocol and how it’s used today19:16 – How the GHG Protocol interacts with other frameworks, including the European Sustainability Reporting Standards and IFRS® Sustainability Disclosure Standards 31:08 – Advice for companies for understanding GHG reporting requirements and interoperabilityFor more information on GHG emissions reporting, including the five-step process outlined in today’s episode, check out

We kick off our miniseries on foreign currency accounting with an episode on determining functional currency, which is the currency of the primary economic environment in which a distinct and separable operation operates.In this episode, we discuss:03:52 – Identifying distinct and separable operations19:01 – Determining functional currency25:45 – Common pitfalls in evaluating functional currency 37:37 – Changes in functional currency40:19 – Highly inflationary economiesFor more information, see chapter 3 of our Foreign currency guide. Additionally, follow this podcast on your favorite podcast app for more episodes.Bret Dooley is a Deputy Chief Accountant in PwC’s National Office who leads teams focused on the financial services sectors and accounting for financial instruments. He has over 25 years of experience in the financial services, banking, and capital markets industries. Bret focuses on emerging financial reporting issues related to financial instruments, developing interpretive guidance, and assisting

We continue our miniseries on stock-based compensation awards with a focus on 5 important things for private companies to know. This is an area for which the accounting tends to be more complicated for nonpublic companies. In this episode, we discuss:3:12 – Measurement of liability-classified awards5:59 – Secondary market transactions16:39 – Profit sharing arrangements22:44 – Equity restructurings31:25 – Recourse and nonrecourse loansFor more information, see chapter 6 of our Stock-based compensation guide. Also, check out our other episode in this miniseries, Stock-based compensation - 5 things to know about modifications. Additionally, follow this podcast on your favorite podcast app for more episodes.Ken Stoler is a partner in PwC’s National Office who specializes in financial reporting and plan design issues related to equity compensation arrangements, retirement and healthcare plans, and other benefits. He has helped companies navigate their employee compensation issues during IPOs, spin offs, acquisitio