PwC's accounting podcast PwC

In the first quarter 2023 edition of The quarter close, we highlight newly effective standards for 2023, featuring new required disclosures for supplier finance programs. We also take a closer look at the accounting and reporting implications of changes to reportable segments. Lastly, we provide the latest updates on ESG reporting proposals and the FASB’s standard-setting projects. Read or listen to The quarter close for these and other relevant accounting and reporting topics you should consider as you close out the first quarter of 2023.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

Every Tuesday in March, Suzanne Stephani, is taking over the podcast to bring you the latest on different types of financing arrangements - from debt to leases to supplier financings - including how the current macroeconomic environment impacts the accounting. 
In this episode, Heather Horn and Suzanne will discuss the impact of the current macroeconomic environment on the classification of debt as current or noncurrent.


In this episode, you’ll hear discussion of:
4:44 - Key judgments in assessing the impact of covenant violations when there are grace periods and waivers13:40 - What to think about when debt is modified in advance of a covenant violation17:12 - The importance of identifying cross default and cross acceleration clauses in debt agreements20:08 - What you need to know about subjective acceleration clauses (SACs), especially in the current economic environment  25:38 - Frequent debt refinancing questions and how SACs within refinancing agreements impact the ability to use them to achieve noncurrent classification For more information, listen to our previous podcast on the presentation and disclosure of debt, and stayed tuned for our next podcast in this miniseries, on debt restructuring. Also read our Financial statement presentation guide and frequently asked questions on accounting in uncertain times. 
Suzanne Stephani is a director in PwC’s National Office specializing in the statement of cash flows, as well as the application and interpretation of the accounting guidance related to financing and leasing transactions.


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.

GHG Protocol is one of the most widely known and applied sustainability reporting frameworks. Even as ESG reporting continues to increase in prominence with proposed disclosures from the European Union as part of the Corporate Sustainability Reporting Directive (CSRD), internationally by the International Sustainability Standards Board (ISSB), and in the United States by the Securities and Exchange Commission (SEC), the criticality of GHG Protocol is reinforced by its incorporation in each of these “big three” proposals.
In light of this changing landscape, the GHG Protocol has undertaken a process to survey stakeholders and determine what updates are needed to its protocol, standards, and guidance. Heather Horn was joined by Marcin Olewinski, a PwC Trust Solutions partner, to unpack the key points of feedback contained in PwC’s comment letter on the GHG Protocol’s open consultation. Heather and Marcin both led PwC’s global working group on developing our comments.

In this episode, you’ll hear discussion of:
1:58 - The importance of governance of the GHG Protocol for long-term operability10:38 - Our view that measurement, recognition, and baseline disclosures should form the building blocks of the standards16:40 - Suggestions for structuring and organizing the standards for ease of use19:17 - Dealing with disparities in data quality and availability through transparent disclosures23:51 - The importance of aligning organizational boundaries, lease accounting, and other areas in the Protocol with financial reporting32:21 - Recommendations to improve Scope 2 reporting39:57 - Final perspectives on aligning GHG reporting with financial reportingInterested in the contents of our comment letter to the GHG protocol? Read it here.
Marcin Olewinski is a partner in PwC’s Trust Solutions practice, with over 20 years of experience bringing valued perspectives and insights to large clients in the energy sector. Additionally, he’s focused extensively within PwC’s National Office on greenhouse gas and sustainability reporting.

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.

Every Tuesday in March, Suzanne Stephani is taking over the podcast to bring you the latest on different types of financing arrangements—from debt to leases to supplier finance programs—including how the current macroeconomic environment may impact the accounting. 
In this episode, Heather Horn and Suzanne are joined by Bret Dooley, a PwC partner who leads our team advising clients on the accounting for financial instruments. Suzanne and Bret explain what supplier finance programs are, share insights on assessing the balance sheet classification, and break down the new disclosure requirements from the FASB that are now (generally) effective for calendar year-end companies.  

In this episode, you’ll hear discussion of:
2:32 - The broad range of supplier finance programs that exist in the market and why companies enter into them12:12 - Why classification on the balance sheet as either a trade payable or debt matters15:19 - Indicators commonly used in practice to assess classification and key judgments to consider 32:42 - What’s required to be disclosed under the FASB’s new guidance and when38:58 - Final advice on thinking through the accounting and reporting for these programs For more information on the accounting and disclosure of supplier finance programs, check out our Financial statement presentation guide. 
Suzanne Stephani is a director in PwC’s National Office specializing in the statement of cash flows, as well as the application and interpretation of the accounting guidance related to financing and leasing transactions.

Bret Dooley is a Deputy Chief Accountant in PwC’s National Office and the financial instruments accounting leader. He has over 25 years of experience specializing in the financial services, banking, and capital markets industries. Bret focuses on emerging financial reporting issues relating to financial instruments, developing interpretive guidance, and assisting clients in resolving complex accounting matters.

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.

After 2022 brought proposed ESG disclosures from the EU as part of the Corporate Sustainability Reporting Directive (CSRD), internationally by the International Sustainability Standards Board (ISSB), and in the US by the Securities and Exchange Commission (SEC), many companies began in earnest to mock up potential disclosures, understand gaps in information quality and availability, and establish work plans for creating consistent, reliable reporting. 
This month marks one year since the SEC’s proposal was released, and we wanted to ask – how have companies been preparing over the past year, and what should they be doing for the next year as we move toward mandatory ESG reporting in many jurisdictions? Heather Horn was joined by Brigham McNaughton, a PwC ESG Services & Strategy partner, to unpack these questions and provide the latest updates on what companies can do now to be prepared for upcoming requirements.

In this episode, you’ll hear discussion of:
1:54 - Where companies have focused their readiness efforts over the last twelve months8:09 - Dealing with estimation in greenhouse gas reporting14:28 - Disclosure controls and the importance of cross-functional teams21:31 - How companies are re-evaluating their governance, strategy, risks, targets, and goals as they prepare for the new disclosure requirements31:06 - Preparing for mandatory ESG reporting requirements in the European Union under the CSRD36:59 - How companies can work to build mature processes for reportingLooking for more information on getting ready for mandatory ESG reporting? Check out our publication, Preparing for tomorrow's rules today.
Brigham McNaughton is a partner in PwC’s ESG practice. He has served global clients in a range of industries including utilities, automotive, and financial services, advising on core ESG strategy development and stakeholder engagement. Brigham has also worked closely with the Sustainability Accounting Standards Board on a variety of reporting initiatives.

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.

Every Tuesday in March, Suzanne Stephani, is taking over the podcast to bring you the latest on different types of financing arrangements - from debt to leases to supplier financings - including how the current macroeconomic environment impacts the accounting. 
To kick off the series, Heather Horn and Suzanne are joined by Marc Jerusalem, a PwC managing director who also specializes in leasing, to discuss how the current macroeconomic environment impacts the accounting for leases.


In this episode, you’ll hear discussion of:
2:23 - Recent FASB standard setting on leases between entities that are under common control 7:38 - How rising interest rates may make it more challenging to use an existing borrowing rate to measure a lease14:21 - Remeasurement events that may occur more frequently during times of economic uncertainty and what assumptions may need to be updated as a result of them20:37 - Impairment of right-of-use asset considerations when a company decides to sublease or abandon a leased space31:37 - Frequent questions on the classification of lease activity in the statement of cash flows For more information, listen to our other podcasts in PwC’s Leasing Toolkit series and read our publication on frequently asked questions on accounting in uncertain times. 
Suzanne Stephani is a director in PwC’s National Office specializing in the statement of cash flows, as well as the application and interpretation of the accounting guidance related to financing and leasing transactions.

Marc Jerusalem is a managing director in PwC’s National Office specializing in leasing. Marc consults with clients on complex lease accounting issues and is a frequent contributor to many related PwC National Office publications.

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.