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Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.We continue our back-to-basics series on financial statement presentation with an episode focused on consolidation disclosures. These disclosures can be complex, covering both consolidated entities – such as variable interest entities (VIEs) and voting interest entities (VOEs) – as well as variable interests in VIEs that are not consolidated. This episode breaks down the relevant frameworks, presentation principles, and disclosure requirements.In this episode, we discuss:2:00 – The purpose of consolidated financial statements and the guiding frameworks5:50 – General consolidation presentation and disclosure principles8:00 – Principles and objectives for the presentation and disclosure of variable interests in VIEs, including from the perspective of:12:22 – A holder of variable interests in a VIE, regardless of primary beneficiary status14:21 – A primary beneficiary of a VIE16:17 – An entity with variable interests in VIEs for which it is not the primary beneficiary20:35 – Presentation and disclosure considerations for VOEsFor more information, see chapter 18 of our Financial statement presentation guide and our Consolidation guide. You can also listen to the other episodes in this miniseries:Reporting reset – Presentation fundamentalsReporting reset – Fair value disclosuresAbout our guestsAlexander Martin is a partner in PwC's Deals practice who specializes in helping clients solve complex accounting, financial reporting, and business issues arising from deals, structured transactions, and other transformational events. With over 15 years of experience, Alexander has deep expertise in US GAAP and SEC reporting, gained through his roles as an advisor in PwC's Deals practice, a regulator at the SEC, and most recently as a partner in PwC's National Office.Matt Sabatini is a partner in PwC's National Office who helps clients and engagement teams navigate the accounting and financial reporting for complex transactions. He specializes in the accounting for M&A, consolidations, corporate reorganizations, recapitalizations, joint ventures, and other investments.About our guest hostDiana Stoltzfus is a partner in the National Office who helps to shape PwC's perspectives on regulatory matters, responses to rulemakings, and policy development, and implementation related to significant new rules and regulations. Prior to rejoining PwC, Diana was the Deputy Chief Accountant in the Office of the Chief Accountant (OCA) at the SEC where she led the activities of the Professional Practices Group within the OCA.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.We kick off our latest accounting series focused on financial statement presentation and we go back to the basics. This first episode sets the stage by covering foundational reporting principles, key disclosure considerations, notable differences between public and private company financial statements, and accounting changes and error corrections.In this episode, we discuss:1:04 – Foundational GAAP and SEC requirements for financial statement presentation2:46 – Determining appropriate reporting periods5:01 – Balance sheet presentation: classification, required disclosures, and best practices11:23 – Income statement presentation: structure and key considerations21:10 – Accounting changes, estimates, and error corrections31:50 – Subsequent events: recognition and disclosureFor more on this topic read the following chapters in our Financial statement presentation guide:Chapter 1: General presentation and disclosure requirementsChapter 2: Balance sheetChapter 3: Income statementChapter 28: Subsequent eventsChapter 30: Accounting changesAdditionally, follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to stay in the loop for the latest thought leadership. About our guestPat Durbin is a PwC National Office Deputy Chief Accountant. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.About our hostGuest host Diana Stoltzfus is a partner in the National Office who helps to shape PwC's perspectives on regulatory matters, responses to rulemakings, and policy development, and implementation related to significant new rules and regulations. Prior to rejoining PwC, Diana was the Deputy Chief Accountant in the Office of the Chief Accountant (OCA) at the SEC where she led the activities of the Professional Practices Group within the OCA.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.Tariffs are dominating headlines and reshaping global trade. In this episode we break down what they may mean for businesses and financial reporting, and we share insights on how companies can prepare. In this episode, we discuss:1:44 – Overview of tariffs and the current state of play16:28 – Key financial reporting impacts21:12 – Reciprocal tariffs: Country- and industry-specific impacts25:44 – Accounting implications: Cost capitalization, customer contracts, asset impairments, income taxes, and disclosures37:30 – Strategies for managing tariff impactsFor more on this topic, read our publications, Accounting implications of tariffs and How Trump's tariffs could impact US companies. About our guestsChristopher Desmond is a leader in PwC's US Global Trade Services team with over 20 years of experience in transfer pricing. He is known for customized offerings in trade / tariffs combined with other specialties such as supply chain, transfer pricing, and international tax. Chris develops transfer pricing and value chain strategies to help clients manage their businesses using a “best foot forward” approach. Pat Durbin is a PwC National Office Deputy Chief Accountant. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.About our hostHeather Horn is the PwC National Office Sustainability and Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC's global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC's accounting and reporting weekly podcast and quarterly webcast series.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com. 

A summary of the key differences between US and UK GAAP

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 tax accounting and reporting reminders with Jennifer Spang, PwC's National Office income tax accounting leader. We cover a variety of tax accounting and reporting topics, including the impact of recent election results and the associated tax impacts expected in 2025.In this episode, we discuss:2:40 – Anticipated tax implications following the 2024 US election results10:50 – Pillar Two 17:36 – The FASB's disclosure standard 21:58 – Uncertain tax positions27:56 – Inflation Reduction Act credits and valuation allowances32:43 – Advice for year-end income tax accountingFor more information about key developments at the AICPA & CIMA conference, see our publication, 2024 AICPA & CIMA Conference: Current SEC and PCAOB Developments and see our publication, Accounting for Pillar Two: Frequently asked questions for the latest on the topic.Also, check out our other episodes in this miniseries:Year-end toolkit: Audit reminders for preparersYear-end toolkit: Year in review from the corner officeYear-end toolkit: Accounting and reporting reminders for 2025And please follow this podcast on your favorite podcast app for more episodes.Jennifer Spang is PwC's National Office income tax accounting leader, specializing in tax accounting under US GAAP and IFRS. She has over 30 years of experience helping companies in a variety of industries navigate complex tax accounting matters.Guest host Kyle Moffatt is PwC's Professional Practice leader, leading a team responsible for working with standard setters and regulators as well as delivering brand-defining thought leadership and educational materials. He also consults with engagement teams and audit clients on SEC reporting matters. Before PwC, Kyle spent almost 20 years with the SEC, most recently as Chief Accountant and Disclosure Program Director in the Division of Corporation Finance.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com. 

#215 Your Guide to Adopting US GAAP Standards with Katrina Nacci https://open.spotify.com/episode/2QAyBEewKZYCwqzkK2mKC2 As global markets become increasingly interconnected, the need for European companies to align their accounting practices with US GAAP standards has become paramount. Navigating the complexities of cross-border accounting can be a daunting task, but with the right guidance, businesses can seamlessly transition and unlock the benefits of US GAAP compliance. In this insightful podcast episode, Katrina Nacci, a seasoned cross-border accounting advisor with KN CPA, shares her expertise and insights on the challenges and opportunities that arise when European companies embrace US GAAP standards. The adoption of US GAAP standards is a critical step for European businesses seeking to expand their reach and access the lucrative US market. By aligning their financial reporting with the widely recognized US accounting framework, these companies can enhance transparency, improve investor confidence, and streamline cross-border transactions. However, the process of converting from European accounting standards, such as IFRS or local GAAP, to US GAAP can be complex and fraught with potential pitfalls. Katrina Nacci's wealth of experience in this niche field provides invaluable guidance to European businesses navigating this transition. Throughout the podcast, Katrina delves into the nuances of the conversion process, highlighting the importance of understanding the specific needs and nuances of each client's accounting practices. She emphasizes the need for a tailored approach that goes beyond simply applying a one-size-fits-all solution, ensuring that the final US GAAP-compliant financial statements accurately reflect the company's unique circumstances. By involving clients in the conversion process and fostering knowledge transfer, Katrina's approach aims to empower businesses to maintain their US GAAP compliance long-term, rather than relying on a temporary fix. Key topics covered:  Katrina's career journey from PwC in Boston to becoming a cross-border accounting specialist in Frankfurt The nuances of converting from European accounting standards (IFRS, local GAAP) to US GAAP, and the importance of understanding the specific needs of each client The drivers behind US investors' requirements for US GAAP-compliant financial statements, including consolidation and audit requirements Katrina's approach to educating clients and involving them in the conversion process to ensure long-term sustainability The competitive landscape and Katrina's strategies for building a steady client pipeline, including networking, marketing, and exploring fractional roles Katrina's vision for the future, including potential expansion and the development of passive income streams https://youtu.be/lXJYTzk3a9Y Links Katrina Nacci on LinkedIn Kevin Appleby on LinkedIn GrowCFO Mentoring Timestamps 0:01:44 - Introductions and catch-up 0:03:32 - Katrina's career journey and expertise in cross-border accounting 0:09:05 - Navigating the challenges of moving to Germany without knowing the language 0:15:25 - Differences between IFRS and US GAAP and the importance of understanding client-specific needs 0:24:51 - The necessity of US GAAP compliance for companies seeking US IPOs 0:33:16 - Katrina's approach to knowledge transfer and client involvement in the conversion process 0:41:33 - Katrina's advice to her past self and the challenges of running a solo advisory business Find out more about GrowCFO If you enjoyed this podcast, you can subscribe to the GrowCFO Show with your favorite podcast app. The GrowCFO show is listed in the Apple podcast directory, Spotify and many others. Why not subscribe there today? That way, you never miss an episode. GrowCFO is a great place to extend your professional network.

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 – Revenue15:56 – Contract modifications25:41 – Capital raising transactions32:35 – Statement of cash flows37:05 – Segment reporting43:28 – Supplier finance obligations44:59 – New standards and looking ahead to 2025Check out the other episode in this miniseries, Year-end toolkit: Year in review from the corner office. Additionally, follow this podcast on your favorite podcast app for more episodes. Beth Paul is a Deputy Chief Accountant in PwC's National Office responsible for a team of consultants that specialize in business combinations and related areas, such as consolidations, disposals, impairments, and segment reporting. She has over 30 years of experience consulting with clients and engagement teams on complex accounting matters.Bret Dooley is a PwC National Office Deputy Chief Accountant 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 clients in resolving complex accounting mattersPat Durbin is a PwC National Office Deputy Chief Accountant. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.Guest host Kyle Moffatt is PwC's Professional Practice leader, leading a team responsible for working with standard setters and regulators as well as delivering brand-defining thought leadership and educational materials. He also consults with engagement teams and audit clients on SEC reporting matters. Before PwC, Kyle spent almost 20 years with the SEC, most recently as Chief Accountant and Disclosure Program Director in the Division of Corporation Finance.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.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 combinationsFor more information, see our full analysis of SEC comment letter trends, our Business combinations guide, and Chapter 17 of our Financial statement presentation guide. Also, check out our other episodes in this miniseries: SEC comment letters – What's trending in 2024 2024 SEC comment letter trends: Revenue Additionally, follow this podcast on your favorite podcast app for more episodes.Beth Paul is a Deputy Chief Accountant in PwC's National Office responsible for a team of consultants that specialize in business combinations and related areas, such as consolidations, disposals, impairments, and segment reporting.Kevin Vaughn is a PwC National Office partner specializing in SEC reporting matters. Kevin leverages his extensive experience to support PwC public company and pre-IPO clients on accounting and SEC reporting matters. Prior to joining PwC in 2023, Kevin spent over 18 years at the SEC, most recently serving on the leadership team in the SEC's Office of the Chief Accountant where he focused on technical accounting consultations, SEC rulemakings, and standard setting matters.Kyle Moffatt is PwC's Professional Practice leader, leading a team responsible for working with standard setters and regulators as well as delivering brand-defining thought leadership and educational materials. He also consults with engagement teams and audit clients on SEC reporting matters. Before PwC, Kyle spent almost 20 years with the SEC, most recently as Chief Accountant and Disclosure Program Director in the Division of Corporation Finance. 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.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 presentation guide. Also, check out our other episode in this miniseries, SEC comment letters – What's trending in 2024. Additionally, follow this podcast on your favorite podcast app for more episodes.Pat Durbin is a Deputy Chief Accountant in PwC's National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.Mike Coleman is a partner in PwC's National Office who specializes in accounting for revenue and software arrangements and has served technology clients for much of his career. In addition, Mike has represented the firm on the AICPA Software Task Force.Heather Horn is the PwC National Office Sustainability and Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC's global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC's accounting and reporting weekly podcast and quarterly webcast series.Follow this podcast on your favorite podcast app for more episodes.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com. 

In this episode of What's New at CFI on FinPod, we discuss accounting for leases, focusing on the key differences between operating and finance leases under US GAAP and IFRS. We explain the recent changes in accounting standards and how they impact financial analysts when comparing companies using different reporting frameworks. We cover essential topics like how to treat lease liabilities and assets on the balance sheet and the implications for financial analysis and valuation. Whether you're dealing with finance leases, operating leases, or comparing companies across accounting standards, this discussion provides practical tips and real-world examples to help you navigate the complexities of correctly classifying leases, adjusting for different accounting treatments, and ensuring accurate financial reporting. If you're a financial analyst or just interested in understanding the latest insights in lease accounting, this episode is packed with insights to expand your knowledge and improve your ability to interpret financial statements

Text us your thoughts on this episodeWe continue our miniseries on software costs. They are accounted for using two different models depending on whether the software is used internally or externally. In this episode, we discuss the internal-use model applicable to software developed or obtained to meet the reporting entities' internal needs.In this episode, we discuss:3:24 – The scope of internal-use software10:29 – The three stages of software development14:07 – Cloud computing arrangements17:50 – Practical challenges in applying this model25:05 – An overview and update on the FASB's current software costs projectFor more information, see chapter 3 of our Software costs guide. Also, check out our other episode in this miniseries, Accounting for the cost of externally marketed software. Additionally, follow this podcast on your favorite podcast app for more episodes.Mike Coleman is a partner in PwC's National Office who specializes in accounting for revenue and software arrangements and has served technology clients for much of his career. In addition, Mike has represented the firm on the AICPA Software Task Force.Pat Durbin is a Deputy Chief Accountant in PwC's National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.Heather Horn  is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC's global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC's quarterly webcast series.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com. 

Text us your thoughts on this episodeWe kick off our miniseries on software costs. They are accounted for using two different models depending on whether the software is used internally or externally. In this episode we focus on the external use model applicable to software to be sold, leased, or otherwise marketed as a separate product or embedded within a product or process.In this episode, we discuss:3:20 – How to determine whether the internal use or externally-marketed software models apply 10:08 – An overview of the externally marketed software model (ASC 985-20)11:25 – When technological feasibility of software is established19:55 – The types of costs capitalized under the model for externally marketed software22:40 – Practical challenges in applying the externally marketed software model27:55 – Applying the guidance to Artificial Intelligence (AI) 31:10 – An update on the FASB's software costs projectFor more information, see chapter 2 of our Software costs guide. Additionally, follow this podcast on your favorite podcast app for more episodes. Mike Coleman is a partner in PwC's National Office who specializes in accounting for revenue and software arrangements and has served technology clients for much of his career. In addition, Mike has represented the firm on the AICPA Software Task Force.Pat Durbin is a Deputy Chief Accountant in PwC's National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC's global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC's quarterly webcast series.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com. 

Text us your thoughts on this episodeWe continue our revenue podcast miniseries discussing contract modifications. Contract modifications are accounted for as either a separate contract or as part of the existing contract, depending on the nature of the modification.In this episode, we discuss: 4:47 – An overview of contract modifications   5:57 – Modifications that are accounted for as separate contracts 6:54 – Modifications that are accounted for prospectively 10:08 – Modifications that result in cumulative catch-up adjustments 11:28 – Other types of modifications 13:16 – Common contract modification scenarios and related accounting pitfalls 23:22 – Contract terminations For more information, see section 2.9 of our Revenue guide. Also, check out other episodes in our miniseries: Gross versus net revenue: Is your company the principal or agent? and Identifying the contract – The first step in recognizing revenue. Additionally, follow this podcast on your favorite podcast app for more episodes.   Pat Durbin is a Deputy Chief Accountant in PwC's National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS. Angela Fergason is a partner and standard setting leader in PwC's National Office who specializes in accounting for revenue and employee compensation arrangements. She also consults on a range of financial reporting issues impacting technology companies. Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC's global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC's quarterly webcast series. Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

Text us your thoughts on this episodeOur revenue miniseries continues with identifying the contract, the first step in the five-step model in the revenue standard. It's important to get this step right to appropriately apply the model for recognizing revenue. In this episode, we discuss:4:10 – The five criteria to have a contract with a customer under the revenue standard 8:23 – The impact of master services agreements and enforceable rights16:03 – Assessing collectibility of the consideration in the contract27:08 – Determining the contract term For more information, read chapter 2 of our Revenue guide. Also, to hear more on revenue topics, listen to the first episode in this miniseries, Gross versus net revenue: Is your company the principal or agent?. Additionally, follow this podcast on your favorite podcast app for more episodes.Mike Coleman is a partner in PwC's National Office with over 30 years of experience. Mike specializes in accounting for revenue and software arrangements and has served technology clients for much of his career. In addition, Mike has represented the firm on the AICPA Software Task Force.Pat Durbin is a Deputy Chief Accountant in PwC's National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC's global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC's quarterly webcast series.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

Text us your thoughts on this episodeThis episode begins a podcast miniseries on revenue topics with a discussion of principal versus agent (PvA) or “gross versus net” revenue. In other words, the principal in a transaction records revenue on a gross basis and the agent records revenue net. The PvA analysis can be subjective but it's important to get it right as it can materially impact a key line item in the income statement, revenue from contracts with customers.In this episode, we discuss:2:00 – An overview of the PvA model and reporting impacts8:45 – Key considerations in the PvA analysis9:50 – Assessing control16:25 – Challenges in applying the PvA analysis to specific arrangements, including:16:59 – Healthcare services24:15 – Payment processing30:12 – Additional reminders relating to the PvA analysis and related disclosuresFor more information, read chapter 10 of our Revenue guide. Additionally, follow this podcast on your favorite podcast app for more episodes.Mike Coleman is a partner in PwC's National Office with over 30 years of experience. Mike specializes in accounting for revenue and software arrangements and has served technology clients for much of his career. In addition, Mike has represented the firm on the AICPA Software Task Force.Pat Durbin is a Deputy Chief Accountant in PwC's National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC's global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC's accounting and reporting weekly podcast and quarterly webcast series.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com. 

In this episode, we talk with our Chief Content Officer about the new "Accounting for Business Combinations and Other Equity Investments" course.Designed to meet the growing demand for accounting knowledge for finance professionals we cover topics including full consolidation for majority ownership, equity method accounting for significant influence, and fair value accounting for smaller stakes. The episode also covers differences between IFRS and US GAAP, with practical insights on using Excel for consolidations. This technical course is aimed at professionals who need to develop This concise, two-hour course aims to provide learners with the skills needed to analyze equity investments in financial statements confidently. Listen in for more details!

Send us your thoughtsIn this special episode of CFO 4.0, Mark Blackmore steps in for Hannah Munro to provide a mid-year roundup of our podcast's most impactful conversations from 2024. Join us as we revisit the wisdom, laughter, and ground-breaking ideas shared by our remarkable guests.Key Highlights:January:Scott Buchanan on the challenges and preparations for taking a company through the IPO process.Dominique Highfield from Purple Bricks on the dynamics of financial and operational leadership.Soufyan Hamid on the transformative power of storytelling in finance.Chris Ortega on generative AI and navigating business uncertainty.February:Hannah Williams, CEO of Alacrity, on effective team communication and the transition from CFO to CEO.Jamie Irwin on the dynamic world of CFO recruitment in private equity.March:Nicholas Boucher on the transformative power of Artificial Intelligence in finance.Tory Bauman on the intricacies of financial planning and analysis in telecommunications infrastructure.Christian Frantz Hansen on balancing quantitative and qualitative measures in performance management.April:Andy Burrows on developing a business-focused finance mindset.Marie Charpentier on transforming finance teams in high-growth companies.Clive Webb on the pivotal role of sustainability in mergers and acquisitions.May:Katrina Nacci on the complexities of US GAAP and proactive planning.Arjit Kumar on leading through major organisational changes.Howard Friedman and Akshay Swaminathan on leveraging data science for business success.June:Chris Lloyd Mostyn on mastering project requirements in financial transformation.David B Horne on fundraising, scaling businesses, and the challenges faced by diverse founders in venture capital.Episodes mentioned:158. The Road to IPO: A Bitcoin Depot Story with Scott Buchanan159. A Leadership Journey at Purplebricks – Insights into Cash Burn, Resilience, and Transformational Triumphs with Dominique Highfield160. Transforming Numbers into Stories: The Power of Financial Communication with Soufyan Hamid161. Navigating 2024: Agility, AI, and People-Centric Finance with Chris Ortega164. Leadership Evolution: Transforming from CFO to CEO with Hannah Williams165. PE Backed | Insider Information on the Recruitment of CFOs in Private Equity with Jamie Irwin167. AI's Role in the Future of Finance with Nicolas Boucher168. PE Backed | The Evolution of a Finance Leader: Journey Through Audit, IPO, Acquisitions to Private Equity with Tory Bauman169. Balancing Acts: Performance Management in Finance with Christian Frantz Hansen171. Beyond Numbers: Cultivating a Business-Focused Finance Mindset with Andy Burrows172. Global Expansion Tactics: Finance Strategies for Success with Marie Charpentier Explore other CFO 4.0 Podcast episodes here. Subscribe to our Podcast!

Send us your thoughtsJoin Hannah Munro as she dives into the complexities of US GAAP with cross-border accounting expert Katrina Nacci. This episode navigates the intricate world of international finance and expansion into the US markets. Here's what we cover:Discover Katrina's journey from PwC in Boston to becoming a cross-border accounting adviser in Frankfurt.Insights into the major hurdles companies face when expanding into the USA detailed look at converting from UK or European GAAP to US GAAPUnderstanding the additional layers of compliance that come with US GAAP and how to prepare for US audits.Strategies for finance teams to manage US GAAP conversions effectivelyAdvice on preparing for funding rounds or acquisitions by US entities, emphasizing the strategic advantage of understanding US GAAP ahead of time.Links mentioned:Katrina's LinkedinLearn more about Katrina's workFree Notion Guide for European CFOs on US Accounting & Reporting Explore other CFO 4.0 Podcast episodes here. Subscribe to our Podcast!

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 guidance6:50 - Disaggregated rate reconciliation disclosures 26:16 - Disaggregated income taxes paid disclosures33:15 - Other changes to existing income tax disclosures35:18 - Effective dates and transitionFor more information, read our publication, FASB issues guidance on income tax disclosures. Additionally, follow this podcast on your favorite podcast app for more episodes.Jennifer Spang is the PwC National Office income tax accounting leader, specializing in tax accounting under US GAAP and IFRS. She has over 30 years of experience helping companies in a variety of industries navigate complex tax accounting matters.Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC's global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC's accounting and reporting weekly podcast and quarterly webcast series.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com. 

In today's episode of the IC-DISC show, I sit down with Dan Corredor, the owner of Strategic CFO, to discuss how his firm is revolutionizing the accounting landscape through near-shoring in Mexico. We explore Dan's journey starting in Colombia and arriving in Houston, where his bilingual skills have helped Strategic CFO carveout a unique niche. Our conversation reveals how Strategic CFO blends accounting expertise with innovative strategies to strengthen businesses from the inside out. Through insights on US GAAP, technology, and building capable teams, Dan shows us why accounting is about more than compliance - it's about fostering strategic growth. Near the end, Dan offers us personal anecdotes about cultivating early savings habits and his culinary interests. Our discussion provides a blueprint for navigating accounting challenges with an international perspective and strategic foresight to propel businesses higher.   SHOW HIGHLIGHTS Dan Corredor's firm, Strategic CFO, is leading a cost-saving revolution by near-shoring back-office accounting services to Mexico, significantly reducing costs compared to traditional US-based services. Strategic CFO was acquired by Dan Corridor in 2017 after the passing of founder Jim Wilkinson, and Dan has continued to evolve the company while maintaining its legacy. We discuss the importance of differentiating between bookkeeping and accounting, where bookkeeping involves recording transactions and accounting involves analyzing and interpreting financial data according to US GAAP. We highlight how an effective accounting team can steer companies beyond outdated systems, and how technology is transforming financial statement preparation. Dan emphasizes the symbiotic client relationships that result from a combination of coachability and strategic foresight in financial matters. There's a discussion about the challenges in the US accounting landscape, including talent shortages and wage inflation, and how near-sourcing with Mexican talent offers a solution. The near-sourcing model involves Mexican employees supervised by Texas-based controllers, ensuring quality control while offering CFO-level support to US companies. We touch upon the personal side of Dan Corridor's journey, including the importance of early financial savings and sharing personal culinary favorites, to connect with the audience. Strategic CFO brings a unique international perspective to each client they serve, emphasizing their hands-on approach and operational expertise. We wrap up with anecdotes and stories that provide insight into the practical application of financial strategies and how companies can scale efficiently with the right accounting support. LINKSShow Notes Be a Guest About IC-DISC Alliance About Strategic CFO GUEST Dan CorredorAbout Dan TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Dave: Hi, my name is David Spray. Welcome to another episode of the IC-DISC Show. Today, my guest is Dan Corredor, the owner of Strategic CFO. Strategic CFO is like many virtual CFO service companies, except that Strategic CFO has an interesting twist that they implemented a little over a year ago. They use what Dan calls near-shoring similar to offshoring, but done in Mexico, where it is very near, and we go into great detail about how they have developed a model that allows for providing professional grade back office accounting for 60% less than a traditional US-sourced solution. There's a lot of great ideas in here, whether you're looking at developing a professionalized accounting group or not. I hope you enjoy this episode as much as I did. Good morning, Dan. Welcome to the podcast. Dan: Good morning David. Thanks for having me. My pleasure, my pleasure. Dave: So where are you calling in from today? What part of the world are you in? Dan: So we are in Shurgland, texas, which is a suburb of Houston, houston, gotcha. Dave: So let's so. You're a native of Houston. Dan: No, I was actually born in Bogota, colombia, in South America. Dave: Okay. Dan: My family moved to the States when I was a baby about six months old, grew up First 10 years in Ohio, moved to Houston area in 1976, and we've been here ever since. Dave: Oh wow, Did y'all speak Spanish at home then? Dan: We did. That was my first language. My dad always said speak Spanish at home and I don't care what you speak outside of house. We learned English outside the house when I went to school and we still speak Spanish today, and my kids do as well. Dave: That's awesome. I'm so jealous. My heritage is German and both of my grandmothers were born in the Dakotas in German communities. They only spoke German until they started school, but then they married non-German guys and then it was during World War II where, you know, speaking German was kind of frowned upon, so we lost the language. I'm always jealous of you truly bilingual folks, and bilingual with no accent in either language, because I'm assuming your Spanish has a nice Colombian accent. Dan: Right, it's pretty good as well. Yeah, it's certainly paid off. I really think that I've gotten a couple of jobs I've had in my career because most of the time I spoke Spanish and could be in Latin America. Dave: That's awesome and good for you for keeping it going to the next generation. I'm told that's easy to kind of let it slide. Dan: Especially as kids grow up, you know, get a little bit older and they start talking back in English and we have to kind of remind them. But it works. You know, my kids are not 20 and 21, and they both are fluent Spanish and English. Dave: That's awesome. What a great skill set to launch them into the world with. Dan: Yeah, we're proud of them. Dave: That's great. So you end up in Houston at some point, at least when you went to college. Dan: Yes, I went to University of Houston, got an accounting degree there and I started working in Houston in oil and gas production first, and then oil and gas services. So yeah, it's always been in Houston, except for two years in Dallas and then almost about four years as an expat in Mexico. Dave: So other than that, always based in Houston- Okay, yeah, I tell people you go through it's like the stages of grief. I tell people that like it's the stages of Houston, right, like when you first get here at least this is what I went through you hate it. There's like it seems like an ugly city. It's flat, you know the traffic, the humidity in the summertime. Then after a while you start to tolerate it and then at some point it kind of gets in your blood and if you ever move away you're like, wow, I really miss that place. That place has got a lot going for it. Dan: Yeah, I've always enjoyed it. You know I've always liked the Houston area and love Texas. Houston has been great. I love the climate, except for these January February days where you know we made it up in 32 degrees. I don't like that. But I don't mind. It has grown a lot. The last few years has experienced a tremendous amount of growth. Dave: Especially where you are. Yeah, I remember when Sugar Land was the middle of nowhere, the country it was nothing. Dan: It was nothing. I remember going to school elementary school we'd go to private school, st Thomas Memorial, and I'd tell kids where I live and I thought I was crazy. You live where you know, but it was only a 30 minute drive back then, so I know. Dave: Well, let's talk about strategic when. When did you become involved in strategic CFO? When did you acquire it? Dan: So I acquired the business in October 2017. The business has been around since the mid 90s. The founder, jim Wilkinson, was a colleague of mine and I actually met him in the 90s and it was ironic. I met him because my brother-in-law and his family hired Jim Wilkinson back in 96 or 97 to help him on a project as a CFO and my brother-in-law said, hey, you got to meet this guy. He's a really nice guy. You know, in Houston is your area. So I met him back then and you know, jim and I had similar backgrounds in regards to the type of things. We worked on our personalities, so we would do lunch and breakfast, you know, quarterly or every six months. Over the years Never worked with each other or for each other, but we'd networked a lot and we'd run into each other. We stayed in touch. We even referred business back and forth to each other, so that you know Jim is the founder and started this business, started the brand, did a great name, developing the brand, the strategic CFO, and he started our online business where we sell a membership subscription and some coaching workshops. Jim was very much a strategic coach. He loved the academic side of accounting and operations. He was very involved with the entrepreneurship program at the University of Houston, so all that really strengthened the business. And, unfortunately, jim went to bed one day in 2017 in the summer and didn't wake up and passed away. So it was really sad. I unfortunately didn't hear about his passing for two or three months afterwards and I was not able to attend his funeral, but I heard it was a beautiful funeral with, you know, a thousand people. So that was Jim. You know he was a network, he had lots of friends and you know so when he passed, I was at a company called Opportun and I was a restructuring group and I was finding an opportunity to love that firm. They've done a great job over there. But when Jim passed, you know, I thought to myself. You know, I've always been, you know, kind of un-perno myself. I've always had the back of my mind wanting to do something on my own. So when Jim passed, I approached the family and asked them what are they going to do with the firm? And they really didn't have a plan of action. So they put me in touch with their attorney and, make long story short, I acquired the firm in October 2017. And it's been great ever since. This is a year six. I can't believe we've already been here six years and we've had a great firm, great growth. We've got really good people. The brand continues to build and strength and it's a well-known brand and I meet a lot of people that a new Jim you know, and they go yeah, I knew Jim, you know, and congrats for taking over Jim's business. You know, so to me it's a privilege to take on his legacy. Dave: Yeah, no, I really like Jim. I think the last time I had dinner with him he had a restaurant I forget where it was in West U that he liked to go to and we'd had dinner or drinks probably after work one day, but that was about a year before his passing, and also like you. Well, no, I think I did hear about it, but I was out of town, I was in, I was out of state and was not able to make the funeral. But same thing I heard. Yeah it was well attended. Well, I'm glad that you reached out to the family because I'm sure they were. His wife was likely in shock from the whole thing. And so that probably worked out well that there was somebody that she knew him had a clean relationship with. So that's great. So talk to me about who are the companies that you all are best set up to serve what's really your sweet spot and who you really can add value to Right. Dan: So people ask us what are the typical companies you work on and boy it's a wide range Our clients, our smallest clients probably seven million in revenue, and our largest client is literally a 13 billion public and trade company. Dave: So it's a wide range. Dan: Now what's right down kind of the middle of the fairway? It's that typical entrepreneur or family owned business that started small and grew and is now doing 40, 50, 80 million hours in revenue and they need to professionalize the back office. It's the companies that started with very basic financial statements and cash reporting and things like that and have bookkeepers and then they move on and now their bank or their partners or investors somebody or the business owner needs professional financial statements. So we professionalize the back office, we professionalize your financial statements. I always explain to business I have this same discussion almost every single day with business owners there's a difference between bookkeeping and accounting and everybody knows bookkeeping. Everybody does bookkeeping. Bookkeeping is entering transactions into a system. You enter a PAR, you push a button, generate a report. That's bookkeeping. We don't do bookkeeping. We don't do that clerical, administrative entering transactions. We will do it as support staff, but we do accounting. We apply accounting principles based on US GAF to those transactions and it starts with everything on the P&L and everything on the balance sheet. You can go to line by line and there are some accounting principles that apply to each one of those transactions. Perfect example Yesterday I was at a client meeting. It's been a fairly new client and they have a lot of manual processes and the transactions on the bookkeeping side. And we said, hey, we can automate this and then all you're going to need is the controller and the accounting manager. And his response is wait a minute, but if you automate all this transactions, I don't need anybody. And I was like well, you're automating the bookkeeping, you're not automating the accounting. Somebody has to apply the knowledge of accounting principles to all those transactions to make sure you have the right P&L and the right balance sheet. But if you just do the bookkeeping, then all you have, in whatever accounting system you're using, is transactions in a system that are really meaningless because you don't have the right margins, you don't have the right assets, you don't have the right liabilities, because you're not applying accounting principles. So oftentimes we find ourselves as a firm educating and coaching the business owners on what is accounting. Why do they need financial statements based on US GAAP? It's not just for the public and credit companies that are trading on the Dow Jones, it's not for those billion dollar companies Every business if you don't have the proper financial statements the financial we call it financial tools, because it's more than just financial statements. If you don't have good financial tools, how do you make decisions in your business? How do you know what projects are making money and not making money truly based on accounting principles, not on a cash basis? So we have to often educate them. So our ideal company is one. Well, one is the entrepreneur or business owner that wants to listen, because we have some that they don't know what they don't know and they think. I had one business owner not too long ago, probably four months ago, telling me that these financial tools and financial statements are just purple unicorns. I was like, okay, so if somebody doesn't want to accept the fact that I've been doing this for 32 years and we know what financial statements are and how they improve your business, if that business owner thinks that they know more than we do, we can help them. If they don't want to be coached, if they don't want to listen, we can't, and we've run into those. We've run into business owners that they think they know everything. They've run their business 20, 30 years, which they run very well. They have good widgets that they make, but they don't know anything about financial statements or accounting principles. So that's the ideal client when it's coachable when it allows us to bring process and procedures and US gap so that they can have not only good financial statements, which are all historical in nature, but also what do we do with that data? Now we have to interpret that historical information, forecast it, analyze it, look at margins so that the business owner can make better decisions about the future. And we that's hence our name, strategic CFO we always want to think strategically. What do we do with that data? To interpret it so that we can properly forecast and know where the business is going and keep it financially healthy. The balance sheet and the P&L are going to describe to you the health of the business and we want to make sure it stays healthy. So that's the ideal client. Dave: So it sounds like yeah. So it sounds like really it's. Companies are kind of a victim of their own success. You know, companies who have, I mean, a $5 million company who stays static for 20 years, you know probably can't add as much value, but that $5 million company that quadruples in revenue over five to 10 years, where they outgrow their accounting system, their processes, the team. It sounds like that's where the opportunity starts, with you all. Dan: That's right. That's right when they want to grow, they want to professionalize the back office, have professional finance savings. Now there's a lot of companies do what we do and since I bought the firm, I've always thought how can we differentiate ourselves? How can we really stand out and bring something to the table? So initially, the first five years of voting the business, I thought that you know we're and it's true, we are very different because we do have a tremendous amount of operational experience. Myself speaking, I've been CEO of companies with as many as 2000 people. I've been general manager of business. When I was in an expat in Mexico, I was general manager for that business after first being the CFO. So we've got tremendous, got tremendous operational experience. I've been interim CEO for one of our clients as strategic CFO. We have that operation, and operations and accounting always have to talk to each other, Sure, but about a year and one month ago, year and two months ago, we really came up with a differentiating factor where yeah. So we, you know I've always been against outsourced accounting and I've been asked previously if we do outsource counting. I've always said no and I don't want to do it because the companies that exist today that do the traditional outsource accounting. I have two main problems with them. Number one is that they are very far removed from the operation. They are located somewhere else. They never said foot in the business, so there's not that connection with operations. Number two is that those companies do outsource accounting. They're working on 10 other clients at the same time, so the business doesn't really get the biggest bang for their buck, and that always bugging as being an operating guy. So, out of a need, one of our clients who came to us said Dan, we love y'all, we love these two people you have here. They're doing a great job, they find us. They finally got us professional accounting, financial statements and these tools and we budget and forecasting all this stuff. But we can't afford you because we're charging U of S rates and we have to charge US rates. We have to pay our people good wages, fair wages. We have to have a little margin in it. We're not going to become millionaires out of this, but we have to have a margin. So I told the owner. I said you know what? You're right, you can't afford us, you're too small. They were seven million in our business. So I went to the drawing board and came back a couple months later and we have developed now a product called mirror sourcing. Mirror sourcing is outsourced accounting, improved and on steroids. We took those two things that I don't like, which is far removed from the operation and working on multiple clients at once. So what we've done with mirror sourcing we will hire an accounting team and it's it starts. It could be a team of two kind of the typical model. It could be one, it could be 10. We actually have one that's 20, but the typical model is a controller and accounting manager. We hire them. They're dedicated to your business and they are on live every day. They only work for you. They are on teams. You go to the group and teams and join a meeting. You're talking to your accounting teams, like having them down the hall Monday through Friday. So that that eliminates that they only work for you, they're not working for anybody else. Number two the onboarding of that team and quarterly visits are on site. So the business owner, the operating team, the clerical staff. They get to know the accounting team because the onboarding is there and on according to the basis. They fly in and they sit there and they do a quarterly review review with you and they're usually there three to five days with you at the office, working with you, hand in hand. So now you start developing that relationship. Now you have a connection between the accounting team and the operations and it's dedicated team and we're able to offer that at a 60% savings. That's six zero, wow, that's huge. Yeah, because the team happens to be located in Mexico. Now why Mexico? Mexico? I spent four years in NexFAT there. I got to work with all the big four firms, got to establish a good network over there in Latin America and Mexico and Columbia and other places. There are very strong professionals. And let's just talk about accounting. The accounting professionals. The accounting professionals that we hire usually have big four experience. They work for US companies. They're all bilingual, they speak very good English, they all know US GAAP and they just happen to work remotely for that period of time between their visits and the wages and economy in Mexico is much different than US. A controller in the US will easily a qualified controller. Let me start with that, because I've seen people labeled controllers that aren't. A qualified controller is the $150,000 person in the US. An accounting manager is going to be $85,000, $90,000 person. In the US. You're spending with benefits and 401k and taxes and everything else. You're going to spend over $300,000, $350,000 on just two people for a small 10 million dollar business. That's a big pill to swallow, sure, we realize that. So we've brought that cost down. So for $12,500 a month, which is less than half of what you'd pay here, you get a team of two qualified professionals dedicated to your business that are providing this professional accounting. We started this out of a need with one company we're up to 10 and we had a very. I have got a contact at a very large public-traded company and I was telling her about this over dinner. She came back to me a couple of days later and she goes you know near source thing you told me about, can you scale that up? I said absolutely. Make long story short. We've opened up an office in Monterey, mexico, only for this publicly-traded company of 13 billion and we now have yeah, we now have I think we're at 22 accounts and that's probably going to be over 30 or 40 accounts because again, any business will benefit from reducing costs. So this large public-traded company is shifting some accounting rules and it could be AP accounts, payable accounts, receivable fixed assets, inter-company cash applications, whatever the needs are. We're able to provide that a huge savings. So with that we've developed near source and it's a successful model. It applies to any business anywhere in the US but we're able to finally bring professional accounting the work done remotely but it's on-site business every three months for 60% savings. So that's a new differentiating factor for our firm at strategic CFO and we think that's going to really take. It has taken off. We think it's going to be a change, game changer for us and our future as a business. We'll continue to do everything we're doing. We're not leaving that, but we're just adding to our revenue stream. Dave: That's really. I really appreciate the innovation of that, and it also just seems like the college students just are not enamored with entering the accounting profession right. There just seems to be staffing shortages and whereas it seems like these countries outside the US there's a greater enthusiasm to do the work. Dan: Yep, there's a large pool. There's a large pool there. You're right. I heard numbers as high as 30% less enrollment in accounting in colleges over the last couple years than historical. So there are less people entering the accounting profession. A lot of them have retired. A lot of people have simply left the accounting profession. It can be grueling, it could be long days and long month ends and long quarters, long year ends. So people have found other ways to make a living and that means it's supply and demand. That means the ones that stay in place, that are controllers and account managers. The wages they're demanding higher wages because there's less of them and there's high turnover. That's. The other thing is that companies, if they hire us in our near sourcing team, if there's tone or turnover, that's our problem, it's not the company's problem. We will fill in a role, fill in a position, if somebody leaves the near sourcing team and we have such a large stack of resumes that we're able to do this quickly. So now we've got now over 30, 35 accounts in Mexico working for us and we hope to double that number in 2024. So we are going to have a very large pool. We have a formal legal entity, we've got Bank account in Mexico, we've got any in Mexico. Payroll in Mexico. We're paying our taxes in Mexico, so it's all legit. It's all meeting all the guidelines and labor requirements that we do in Mexico. But even with all that, we're able to save US businesses a tremendous amount of money. Dave: That's awesome, and I was just reading about a new Department of Labor ruling making it even more difficult for companies to have contractors. There's always this desire by the federal government to have as few people classified as contractors as possible, and it seems like your model avoids those issues as well, because these aren't even US contractors. Right, that's right. Dan: That's correct. Yeah, they're all our employees but they're through a Mexican entity that we have down in Mexico. I failed to mention that. Each team is supervised by one of the controllers we have here in Texas. That controller is available if the client says, hey, I need to see somebody tomorrow. You know, all right, fine, controller myself can the car and go see the client and a month end all the. We have quality control. The controller here in Houston reviews a month and reports, meets with the team several times during the week. So the controller usually supervises three or four teams and that's how we're splitting it up. So the controller is busy full time. We'll continue to hire local controllers in Houston because we need more supervisors and are supervising these accounting teams in Mexico. So we do have local support and, being the strategic CFO, our specialty is CFOs, so we actually bring that to the table also. So a company, by signing up with us for the near sourcing, yes, they get the team, but they also get the support of our firm at the CFO level. So I've attended many bank meetings, many business owner meetings you know, strategic meetings with business owners because they are our clients and we're able to provide that CFO support by them joining our near sourcing model. Dave: Now I really, I really love that and I, you know, our clients tend to be similar to yours, you know, except all of our clients are privately held. You know median annual revenues probably 60 or $75 million, and so here's a question so there's obviously a cost to professionalizing the back office accounting function. Dan: What are? Dave: some of the financial benefits to having more. So, as I mentioned, there's a cost to professionalizing your back office, right, but I'm sure there's also financial benefit. What are some of the financial benefits that you've seen from companies who do upgrade their accounting function, the quality of their financial statement? I mean, I can imagine some benefits, but what are some of the benefits you've seen? Dan: Great question and oftentimes a new business owner that I meet will ask me the same question. So my response is if you do not do this, if you do not spend money on professional accounting we call US GAAP accounting whatever books and records you're keeping are wrong Period they're wrong. The most common example is cash basis account. If you manufacture widgets or you install something or you have contracts and you do not have the professional US GAAP accounting, you do not have a true picture of your margins Period Because it's cash basis. The world we live in is a world of accrual accounting and I don't want to get into accounting and accruals and all that, but it's a timing difference. The easiest example is an invoice and a counter-sealable. That is, in essence, the most basic example of an accrual. We have a timing difference. That's the economy we live in. Unless you sell the company that does not need professional accounting like we provide, is the guy who has a hamburger stand and sells burgers for cash and receives every day, for example, a little bit bigger than the hamburger stand or hotdog stand. We really can't help. For example, a fast food business that's point of sale. They sell a burger and fries and they collect At the franchisee level. At that small business level, they're not going to benefit from US GAAP accounting. Now the company that owns them and has multiple franchises will, because they've got accruals, they've got vendors and they've got this and they've got that and they buy machines the cash basis transaction. In the most simplest explanation, if I sell you something for cash and I don't have any inventory and I don't have any receivable or any payable or anything else, and I don't buy equipment, they don't need us. But that's a tiny business. That's what the US government calls a micro business. The companies we deal with are not micro businesses. The company we deal with have employees, they've got insurance, they buy equipment, they have inventory or they have complicated services or they have contracts that go over 30 days. There's some nuance and by not having professional accounting, you don't have a good financial statement. If you don't have a good income statement, how do you know your margins? How do you know what you really have? How do you know if you're losing money? By having them, not only do you have good reporting tools, but we've also increased your enterprise value. I've had several investment bankers tell me over the years that the difference between having the professional accounting versus not is at least a multiple of one of enterprise value. That's huge. If you've got a business that does a million dollars of EBITDA, that's a multiple of one. We just added a million dollars of value by bringing a professional accounting to your business. Not only does it help you in the short term which is running the business, because now you understand your margins and you're able to forecast and plan your cash flow and determine if you're going to reinvest in your business but we're also adding value on a long-term basis enterprise value those are the benefits and we're never going to cost you that added value that we bring to the table. We're not going to cost you a million dollars a year, but we're adding that value and what about Most business owners? Dave: will listen yeah and I can also imagine that, let's say, their bank starts requiring reviews or audits. I'm guessing that the audit fees by the accounting firm are probably going to be less if you're providing them professional financial statements that are gap basis already. Dan: That's right. So if somebody, first of all, I would recommend that everybody go through an audit because it's just good to have. But if you're required to have an audit, yes, an audit firm which we do not do audits we're not a CPA firm, but an audit firm will come in and do an audit First of all, they cannot complete an audit if you don't have professional accounting Right. So what the audit firm is going to tell you is you need to hire somebody, get your books and records per US gap so we can audit you. Otherwise, we're going to audit you and you're going to have a qualified opinion because you don't meet any of the accounting principles. And the audit firm cannot do that service for you because they get conflicted out. Dave: They can audit their own work. 30 years ago, I think they had more latitude. Dan: Yes, yeah, before my prior employer, enron, before Enron in 2000,. You know, the Sarbanes Oxley was formed. A lot of accounting principles were changed at that time. I think it was at that time that it was required that if you have to split your services, if you're going to be auditing, you can't be consulting and you can't be auditing your own work. So, and we've been hired by companies that are going through an audit, and audit firms have contacted us and said hey, I have a client, here's what they need help on to get their books and records to this professional level. And we are hired by the client. The audit firm comes in later, after we're done, and they can complete their audit and we're able to save us some money by doing that. Dave: But yes, I know that makes sense. What do you enjoy most about your role with the company? Dan: I love dealing with businesses that trust us and I've got, and most of our clients do, 95% of our clients do, or 99. We may have one or two that don't believe yet because we're still new, but I love getting involved with the business owner or business owners that trust us and they allow us to deliver over time. Because it takes time, it doesn't happen overnight. It'll take three or four months to develop a relationship. It'll develop six or eight months to finally get things really where they're seeing the deliverables. But I love seeing the transformation and we've got many examples in our firm of transformation where a company started with no financial reporting that was accurate to really good financial reporting and cash flow forecasts and budgeting and financial models where we interpret that data and everything's working. So watching that transformation is very rewarding. That's what I love the most and I love dealing with business owners on the operating side where we can add value as well. Dave: Sure, yeah, no, I can certainly relate to that. Well, I can't believe how fast this time has flown by. I've just a couple of kind of fun questions for you. Are you ready for some outside the box questions? Bring it on, I love it Awesome. So let's say you could go back in time and give advice to your 25 year old self. What advice might you give to your 25 year old self with the benefit of you know, the last few decades? Dan: If I were to go back to my 25 year old self, I'd say start saving money early. And that's what I tell my children. We had a discussion over Christmas In your early 20s. Unless you're really smart and talented and I wasn't you don't understand the time value of money and compounding interest. Dave: Yeah. Dan: Like you do now. And if I literally told my kids to go for Christmas, we had this exact same discussion. I said you know, take 25% of your paycheck and put it away in some account that you're never going to touch, yeah, don't even think about it. And by the time you're 50 or 60, you're going to see a huge nest egg and it's going to feel very rewarding. That's something I would do differently. I was. I got married late, you know, I was 34. So I worked hard. In my 20s I was already working for very large companies in nice positions controller roles. In my time I was 30 controller roles. So I was busy with making good money but also spending money, you know, getting the nice. I was really focused on getting the nice car, you know, traveling and, you know, not so focused on planning ahead and planning a family. Then I stumbled onto my beautiful wife and said, oh my God, I got to get married, you know. And then you know, soon after, kids, and then you know the house, and then but so anyway, that's the long response I would say early, mid 25, start saving early. Dave: Okay, yeah, I see I read a study once that said and it was a crazy number Like if you saved a certain you know amount of money you know call it $10,000 a year from the time you were 22 until you were 30, and then you stop saving, you never saved again. You'd have more money, like when you were 65 or seven. Then if you started saving at like 40, and you saved that $10,000 a year for 25 years, like you'd end up with less money than saving for eight years early on, which just demonstrates that whole time value of money. I think Einstein said the compound interest was the most amazing invention in the history of the world, or some crazy thing. Dan: It's crazy that the effect on that dollar saved early on is huge, you know, and I think I would do that different. Dave: Okay, well, here's the last question. I guess I have one and a half questions. I have the last fun one and then the last one will just be if there's anything we did and you covered, that we should have but the fun one is barbecue or Tex-Max barbecue. Okay, that's usually the most common answer. I stole that question. We helped Chris Hans, like the managing partner, and Boiler Miller. We were able to help them launch a podcast, and that's one of his standard questions that I've copied. I find it to be a fun question. Dan: It's a tough one. I almost said Tex-Max it's a tough one, or? Dave: I guess I should have asked you barbecue Tex-Max or authentic Colombian food. Dan: Yeah, I'd still go with barbecue or Tex-Max. Yeah, club with food is okay. I find it to be a little bit blander, but it's okay, that's good, I'm gonna knock it. My Colombian friends will hate me, but I don't know. It's good. Dave: Well, is there anything that I didn't ask you that you wish I? Dan: had. Well, maybe you know one other comment that I'd like to add about our firm, which is a little bit differentiated. Facts is, we have a lot of good international experience, not just myself, but my managing director, oscar Pinoe, cindy Dinn. They both have tremendous audit and international experience, oscar also interesting. If we haven't made it, let me tell you Oscar's story. We actually met in a small town in Argentina 23, 24 years ago when we were both at Weatherford. I hired him when I was in at Weatherford as controller for Latin America and he was an accountant that I hired. He ended up staying at Weatherford for 20 plus years, did very well, grew throughout the. You know the ladder at Weatherford and he left Weatherford a couple years ago and joined our firm. But we've got tremendous international experience, tremendous operational experience that could also add value to companies. Dave: So okay, well, yeah, that is great to know. Well, Dan. And then, if people want to learn more about the services, what's the best place to learn more Best? Dan: place to go to is our webpage, strategiccfocom. There's two C's in the middle there strategiccfocom. Or just call my cell phone. You know I don't mind people call my cell phone 713-501-7481. But we're still small enough that we touch every client I do. I like meeting all our clients and spending time with them. We're very involved with all of them. Myself and our managing directors are available to any one of our clients at any time. So yeah, we'd love to continue Jim's legacy and continue to build this firm. Dave: That's awesome. Well, Dan, thank you again for spending time with me today. I know the listeners are really good. Thank you, David. More and especially this near sourcing model. I think that's really intriguing, and I hope you have a great day. Dan: Thank you very much, appreciate your time and thanks for having me All right. Special Guest: Dan Corredor.

We continue our month of podcasts focused on financial statement presentation hot topics. In this episode, host Heather Horn sits down with Pat Durbin, a deputy chief accountant in PwC's National Office, and Felix Perez, a partner in PwC's National Office specializing in SEC reporting, to discuss the significance of income statement presentation to the investor community and standard setters. Together, they break down key areas of judgment and the practical challenges involved in income statement presentation and classification.In this episode, you'll hear:1:34 - The significance of income statement presentation and classification in portraying financial performance, including general reporting considerations and the interaction between income statement presentation and non-GAAP metrics8:50 - The SEC's rules on the form and content of income statements, including considerations for financial institutions21:44 - Income and expense disaggregation reminders, including classification of operating versus non-operating expenses as well as considerations for cost of sales, depreciation, and amortization33:50 - The complexities of income statement classification in collaborative arrangements, discontinued operations, and impairments42:05 - An update on the FASB project on disaggregation of income statement expenses (DISE) projectFor more information, read chapter 3 of our Financial statement presentation guide. Additionally, follow this podcast on your favorite podcast app for more episodes.Pat Durbin is a Deputy Chief Accountant in PwC's National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.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.Felix Perez is a partner in PwC's National Office specializing in SEC reporting. He has over 25 years of experience serving clients and engagement teams across financial services and technology sectors.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

In each episode of our Year-end toolkit series, our guests share insights on key areas of the year-end accounting and reporting process. To kick off the series, guest host Valerie Wieman, PwC National Office partner, welcomes three of our deputy chief accountants to discuss what is top of mind for each of them this year end. In this episode, you will hear discussion of: 3:41 - Contingent consideration in a business combination, including the impact on the statement of cash flows 6:20 - Equity method investments and recording basis differences  10:08 - Disposing of a business, including when to apply the held-for-sale model 15:34 - Revenue contract modifications 18:40 - Avoiding common pitfalls with debt restructurings in a rising interest rate environment 23:55 - Fair value measurement after compensation and incentive arrangement modifications and the impact of the SEC's new clawback rule 35:39 - Updates on segment reporting  37:31 - Impact of the current macroeconomic environment on impairment analyses 39:58 - Tax implications of nonrecurring transactions and accounting for Inflation Reduction Act (IRA) credits 47:20 - Cash flow presentation of other financing sources, including revolving debt agreements and supplier finance programs For more information on presentation and disclosure requirements, read our Financial statement presentation guide, and for further insights on the latest accounting, financial reporting and regulatory updates, read our Q4 2023 quarter close. Additionally, follow this podcast on your favorite podcast app for upcoming episodes in our Year-end toolkit series, and for disclosure reminders on supplier finance programs, listen to our previous podcast.  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. Pat Durbin is a Deputy Chief Accountant in PwC's National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS. Beth Paul is a Deputy Chief Accountant in PwC's National Office responsible for a team of consultants that specialize in business combinations and related areas, such as consolidations, disposals, impairments, and segment reporting. Valerie Wieman is a PwC National Office partner with over 30 years of experience. She helps lead the creation, development, and publication of our brand-defining thought leadership, with a focus on domestic and international sustainability requirements.    Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com. 

Tony Silverman, director, credit rating criteria, research & analytics, AM Best, said combined ratios in non-life insurance will change, improving the quality of financial indicators. However IFRS 17 will mean that comparisons with other accounting standards such as US GAAP will require interpretation. Silverman spoke with AM Best TV at AM Best's Europe Insurance Market & Methodology Briefings – London.

Welcome to the Count Me In podcast with your host Adam Larson and special guest Dan DeGolier! In this episode, Adam and Dan, founder and CEO of Ascent CFO Solutions, dive into the fascinating world of AI and its application in the finance and accounting sectors. Discover how AI is enhancing efficiency and reducing errors, while also exploring the potential challenges and ethical considerations it presents. Join us as we explore the evolving landscape of AI in fractional leadership. Tune in now for an engaging discussion you won't want to miss!Full Episode Transcript: Adam:            Welcome back for another exciting episode of Count Me In. I'm your host, Adam Larson, and today we have a special guest joining us, Dan DeGolier. The founder and CEO of Ascent CFO Solutions. We start off by exploring current use cases of AI in the industry. Such as coding transactions and streamlining forecasting processes.  But as Dan points out, we're only scratching the surface of what AI can do. The potential for growth and efficiency is immense. But it's important to proceed with caution and be aware of the biases and ethical considerations that come along with it.  Throughout this episode we highlight the evolving role of finance and accounting professionals, in the age of AI, and how they can adapt to leverage its benefits. From bookkeepers, to CFOs, to fractional CFOs, AI has the power to enhance efficiency and transform the way we approach financial management. So grab your headphones, and join us as we uncover the exciting world of AI in accounting. Let's dive in. < Music > Well, Dan, we're so excited to have you on the podcast today, as we're going to talk about AI and fractional leadership. And just to get started, as we think about AI, how is it currently being applied to finance and accounting sectors? Obviously, it does things like enhance efficiency and reduce errors, but how is it being applied in those areas?  Dan:                Yes, thanks for having me on, Adam. It's a pleasure to meet you, pleasure to be here. I think we're just getting started, for one thing. AI, even though it's been around for a while, ChatGPT, GPT 4, and all those things, are relatively new to the mainstream. And, so, a lot of this stuff we're just starting to figure out right now.  Definitely, in the accounting side, we're starting to see some use cases for coding transactions and things like that. I think there are a lot of opportunities in our world, in the finance realm. When it comes to forecasting, to be able to streamline multiple scenarios and make iterations to financial models and forecasts.  I think that's an area that we're starting to see develop. And, then, things like pricing strategy and looking at different ways to price and run different scenarios around that. Using large language models, and data, and being able to bring in data and run multiple scenarios and see what things look like there. I think those are all some areas that we're starting to see.  But, honestly, because it's so early, what is really going to be the biggest use cases, two years from now, is probably something we haven't thought of. Or somebody's thought of but hasn't really been implemented, yet. Adam:            Yes, that's a great point, that we're so early in the generative AI phase that some organizations are adapting quickly, other ones aren't. And software companies are trying to integrate it into there but it's still in the early phases. So our traditional role- Dan:                And it's still prone to errors as well. Adam:            Exactly. Dan:                Yes, we've all read the articles about the lawyer who tried to use it for briefs and got in huge trouble, and the hallucinations are still rampant. So I think proceed with caution, but recognize that it has enormous potential and don't be left behind.  I was going to say, I've heard that it's been compared to if you look at Web 1.0, the emergence of the Internet, and commercial use, that this could be a 10x-type of opportunity. From a growth potential, from an efficiency potential, et cetera, it's just fascinating to me, just how massive this could be, and how life-changing this is. Adam:            Well, and also the bias that's implicit in there, in the AI. Because there are so many biases among how people think, wording, that's out there in the Internet and how it's learning. There's going to be that bias that you have to get over as well. Because it's going to be embedded in there because of how it is societally. Dan:                Correct, yes, I agree with that. I think one other ethical consideration that needs to be taken into account, when you're implementing AI, is things around copyright infringement, and intellectual property, and protection there. I think the chatbots aren't necessarily aware of what's IP and protected and what's not.  And, so, it's important that we take into that, that there's a human overseeing that, and making sure that there's nothing being taken out of context or being utilized improperly. And along the same lines, research is another area. Tax research and other types of accounting research is a place where there is a lot of use cases for AI.  But, again, this is where you need to be very careful around trusting that research and validating that it is accurate. So we don't end up in a situation, where something that's not valid is being utilized. Adam:            It's going to be very difficult to understand what has been verified and what hasn't, and as you're doing research and as you're looking at things online. I imagine new tools are going to have to be developed to verify, "Yes, this is valid." Or "No, it's not." And how do you trust those as you go forward? Dan:                Yes, that's really important, and there are going to be mistakes made. As we start to adopt this, we're going to see mistakes being made. And, as humans, we need to learn from our mistakes and learn from others' mistakes, that's how we evolve. Adam:            Mh-hmm. Do you think that the traditional roles in finance and accounting are going to change because of these? I mean, obviously, they are. But how can we adapt as we go forward? Dan:                Yes, I think, first thing I would suggest is pay attention to what's going on, see what's evolving, see where things are taking it. I think it's going to definitely change the accounting side, the day-to-day transactional stuff. There's a YouTuber out there, Hector Garcia, who has done some demos of how you can plug in a ChatGPT tool into QuickBooks Online, and how that can help ease the coding of transactions and things like that. So it's definitely going to change that bookkeeper and junior accountant role significantly, I think it'll change all aspects. The CFO's desk, it's going to still require somebody with experience, and knowledge, and understanding, to validate what's coming out of it. Just like in any other industry, there's a lot of need to confirm, and double-check, and be heavily involved at that strategic level. But I think it'll make us more efficient. Adam:            Yes, I definitely agree with that. And as you're talking about things like analysis and looking at it from that higher level. I mean, obviously, the AI has a better computing power, but we still need that human element. And how does that traditional human analysis going to affect, as we look at the output from the AI? Dan:                Yes, that it's still going to be critical. Machines are going to do a lot of the analysis and it'll find pattern. It's better at pattern recognition than us, especially. with large data sets. But when it comes back to that human element of truly understanding, and the uniqueness of certain things, it's going to require a human element.  In preparation for this call, I was thinking a lot about fraud detection, and you got large data sets out there. I think, again, back to pattern recognition, AI can be really good at identifying things that stand out and look unusual. I mean, if you think about, maybe, purchase orders or sales orders that look unusual.  Maybe have overrides from managers and they can look for patterns there, where particular users, within an accounting system or ERP system, might see that something that a particular manager might tend to override things more often. Or looking at addresses, and zip codes, and understanding if there might be some inappropriate payments made that match up to addresses, vendors matchup to employee addresses or things like that. So that could be bogus, that could be fraudulent.  I think those things are going to be a huge area for auditors, both, internal and external auditors starting to use those data sets. Where that AI tool can go in and start digging around and finding some unusual patterns.  Adam:            Yes, and thinking about implementing AI, within your organization, if you're really considering this, you've done all the research. What are some challenges or ethical considerations that should be addressed, when implementing it? Dan:                The first thing that comes to mind is security. Right now, I've been reading some things that we're trying to be able to bring it inside your intranet, bring in those tools inside your internet. But you don't want to have breaches of data, things that go out, where the chatbot is getting a hold of your corporate data and then utilizing that in the greater universe. And, so, that's going to be really critical, is that we solve for security concerns where things stay within the four walls very clearly. That's the first thing that comes to mind.  And I think the other one is touched on earlier, which is just trusting it too much and seeing that something that comes out of it is just trustworthy, as opposed to really validating it. Whether that's research around case law, when it comes to tax law, or whether it has to do with... Just what comes out of a financial model, and what's practical from a pipeline perspective and things like that, when you're forecasting your financials. Adam:            Yes, so as we look to the future, when it comes to AI. What are some of the breakthroughs that you think will happen within the finance and accounting industry, as we look to the future with AI? Dan:                Automation, in general, and that can take multiple forms. We touched on the accounting coding of transactions and things like that, I think that's a big part of it. There can be a lot more automation around all of the accounting cycles. Whether it be payroll, invoicing, accounts payable, there can be a tremendous amount of automation on that side.  Variance analysis when it comes to your soft close of the books, your initial review of a month-end close. I think there can definitely be an analysis and digging in a transaction, and looking for those variances to prior periods variances, to budget variances, to forecast, and pulling those out. So I think there can be some automation around that. And, then, again, on the financial modeling piece, the forecast piece, there will be automation there as well. Adam:            So one area of expertise that you have a lot of expertise in, is the fractional leadership, the fractional executive, and especially the fractional CFO. And as we're talking about AI and the changing of how that CFO looks. How do you see the ability to have this AI as a fractional CFO? How does that really enhance your ability to help the organizations, that you're within that fractional capacity? Dan:                Yes, well at our firm, we're technology first, and we've always been focused on automation where we can. So I think for us, it's going to be those same types of approaches. Where we find ways to be more efficient, to be more cost-effective, to really implement these tools. Identify the best use cases for these tools, kind of trust but verify. Make sure that you still got that adult supervision, with that AI tool. But really leaning into it and making it a tool that speeds up data for the C-suite.  The faster you can close your books, the faster you can update your model, the faster you can make adjustments. When you see something change with your pipeline, I think, more agile executive team can act. Adam:            So when you're coming in as a fractional executive, a lot of times the best place for that model is an organization in transition. And, so, that's what I've been reading when I've had other conversations. It seems like it's organizations that are in transition, and when you're in that transition, it seems like you would be looking at all your systems. But how do you come in and say, "Hey, I want to have this technology first and utilize these tools." But they have never used those before. How do you bridge that gap? Dan:                Yes, it's an incremental process. I mean, when we look at working with a company, they are often going through a transition. Maybe, they're looking to raise an additional round of capital. They've recently raised another round of capital. They've got a new board reporting requirements. They need better discipline when it comes to forecasting their cash flow.  So if they're a little behind the 8-ball, when it comes to technology, it's going to be incremental steps. You first have to get a really solid ERP, or accounting system in place that is trustworthy and fully GAAP. Whether they're audited or not, you want them to be fully on accrual GAAP basis.  Once you have that, then, you start to put in place those data visualization tools. That's something we've been leaning into really heavily the last year or two, is creating really robust dashboards and data visualization, that not only show your historical financials, but your forecast, and your HR, and your payroll, and your sales pipeline. And, so, those technologies first need to have really reliable actuals, before you can lean heavily into some of the other newer technologies, and more robust technologies. Adam:            That makes me think of how important it is to have good data. Because you don't want to have garbage in, then, it'll just be garbage out. So you have to really make sure your data is in a good spot. Dan:                You don't even want to start to forecast or implement those better tools until your historicals are accurate, for sure. And it's not just plain GAAP financials, it's also what your KPIs look like. What are the real drivers of your business? And that's one of the things we look at when we come into a new client, is really take the time to look at the true drivers of the business.  They may not be obvious at first, every company is a little bit different. What's driving their growth, and their revenue, and their cash flow. So we really lean into that. And, so, we'll often start with what we call an assessment phase. We'll spend 20 to 40 hours just really digging in deep, to understand every component of the business. Adam:            Do you think that all businesses would benefit from some a fractional executive coming in and relooking at things? A lot of times people bring in consultants to do that. But it's just like they look at everything, give you a PowerPoint, and head out the door. But that fractional seems to be like that person who partners with you for a period of time. Dan:                Yes, definitely, our model is based on long-term but part-time. So we're, generally, looking at companies in the SMB market. So, generally, we work with companies between 2 million and 100 million in revenue.  And, so, as that company scales, some companies are too quick to hire a full-time CFO. Where they might really just need a full-time controller, a really solid controller, and an accounting team. And, then, a fractional CFO for a couple of days a week, who's extremely well qualified and very experienced, could be a great fit for them. To bring in that true executive-level oversight, with decades of experience, to help them navigate, again, what those critical KPIs are. Where the holes are and the different strategies that are being considered and things like that.  So, yes, companies that are worth 75 or 100 million very likely to have a full-time CFO, a very qualified CFO. But companies under 75 million or depending upon the transaction complexity, and transaction volume, companies that are small and medium-sized businesses can really benefit from having a top-notch CFO on their team. But it may not need to be a 40-hour or 60-hour-a-week job. It can maybe be a 20-hour-a-week type of engagement. Adam:            So you get that full-time experience, that experienced person there. But you may not, necessarily, be able to afford the salary that would require to have that person on full-time. Dan:                Yes, and there may not be enough, truly strategic, CFO-level work for that person, that you need to have someone on a full-time basis. That's what our whole model is based on. As you grow and evolve, you get the resources you need on a fractional basis.  Our team is CFOs, and VPs of Finance, and controllers, accounting managers, financial analysts, senior accountants. So we've got a full stack of people with different levels of experience, who can come in and support a company during its growth phases, and you pay for what you need. As opposed to having a real heavy fixed cost on your G&A budget, G&A financials. Adam:            Yes, that seems like a really good benefit, especially, for the small to medium-sized businesses. Is it beneficial for a startup? If a startup is just getting going; as an entrepreneur, is it good to bring in fractional folks, or do you think full-time would be more beneficial? Dan:                Yes, fractional makes a lot of sense for an early-stage company. I look at as a step function. You start out maybe you just need a part-time accountant to make sure things are being coded properly. Once you have revenue and you're ready to raise around the capital, then, you probably want a strategic fractional CFO or VP of finance, who can help you with that capital fundraise, help you with a really robust financial model, and understanding what your KPIs and drivers are.  And, then, over time, you start to fill in some of those roles on a full-time basis, as you get a growth cycle. So it's not uncommon, maybe, you start with a fractional senior accountant and a little bit of oversight, from a fractional controller. And then that evolves into one or two full-time accountants and, then, a fractional CFO, and, then, eventually, you get a full-time controller, and it just builds as you go up the ladder in revenue, and fundraising. Adam:            So this does not have to do with fractional CFO. But I want to throw this question out there and you feel free to answer it or not. But do you think that the evolution of AI will help bridge the gap between US GAAP and IFRS, to make it a more international accounting standard? Dan:                I think it definitely has potential to. I think that there's logic in the way that things like RevRec and other things are being handled, between IFRS and US GAAP. So, I think, there's definitely some good potential there. Adam:            Yes, I don't know. Because I just feel like as we become a more global world and how we would do business and everything. It would make more sense to have a globally recognized accounting standard, so that everybody's doing the same, has the same standards that they live up to. Obviously different countries have different beliefs and stuff like that, but it would make sense for us to think globally. Dan:                Yes, I like that. I hadn't given that a lot of thought before, but that does make a lot of sense to me. Adam:            Mh-hmm, well, Dan, I want to thank you so much for coming on the podcast. It's been great talking with you. Thanks so much for sharing your knowledge and expertise with our audience. Dan:                My pleasure Adam. Really it was fun to meet you and fun to discuss these emerging technologies with you. < Outro > Announcer:    This has been Count Me In, IMA's podcast, providing you with the latest perspectives of thought leaders, from the accounting and finance profession. If you like what you heard and you'd like to be counted in for more relevant accounting in finance education, visit IMA's website at www.imainet.org.  

In today's episode, sustainability and financial reporting intersect. We discuss accounting for green incentives that arise from the Inflation Reduction Act (IRA). The IRA, signed into law in August 2022, provides climate and clean energy tax credits. With many types of credits available in the IRA, companies have raised questions about the financial accounting implications of the credits given the unique features that these credits have compared to past federal incentives. This week, Heather Horn is joined by Pat Durbin, a Deputy Chief Accountant in PwC's National Office, and Jillian Pearce, a partner in our utilities practice, both of whom have closely followed accounting for the credits, to discuss what to look out for in accounting for IRA tax credits.In this episode, you'll hear discussion of:2:38 - The background, including the breadth, scope, and structure of available IRA credits7:45 - The different pathways to realization of tax credits11:45 - How companies should allocate consideration paid for IRA credits17:07 - The difference between renewable energy credits (RECs) and IRA credits24:32 - Accounting for tax credits by analogy to IAS 20, Accounting for Government Grants and Disclosure of Government Assistance43:16 - Accounting for tax credits using under the ASC 740, Income Taxes, model56:44 - Tax credit disclosure and control considerationsLooking for more information on accounting for IRA energy incentives? Check out our latest publication on IRA credits. Additionally, check out our podcast episode on renewable energy credits for more information.Pat Durbin is a Deputy Chief Accountant in PwC's National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.Jillian Pearce is a partner in PwC's National Office, providing advice on financial instruments and other technical accounting issues to power and utilities clients. She was a Professional Accounting Fellow in the Office of the Chief Accountant at the SEC, and has over 15 years of auditing experience.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 July, Jay Seliber is taking over the podcast to share insights on business combinations, which are often significant events in a company's life cycle. Jay takes us on a journey through a deal, beginning with the complexities of the overall acquisition accounting model, then diving into some of the more complex areas—identifying the accounting acquirer, accounting for contingent consideration, and reporting with the SEC.To continue the series, Heather and Jay are joined by Ryan Spencer, a PwC National office partner who specializes in SEC reporting, to break down the SEC filing requirements for business combinations, including the application of significance tests used to determine the reporting requirements.In this episode, you'll hear:2:02 - A breakdown of the SEC filing requirements for business combinations7:10 - A discussion of significance tests and how they help to determine filing requirements17:36 - A summary of financial statement requirements, including considerations on timing and the age of financial information23:38 - An overview of the unique guidelines for a company filing (1) a new registration statement, (2) transactional proxy statements, and (3)  reverse-merger information32:30 - A summary of pro forma reporting requirements, including timing considerations43:36 - The distinction between the SEC and US GAAP disclosure requirements47:06 - Final advice for companies navigating the filing requirements for a business combinationFor more information, read chapter 17 of our Financial statement presentation guide and the SEC Financial Reporting Manual. Also check out the prior podcast in this miniseries on business combinations. Jay Seliber is a partner in PwC's National office. He leverages over 30 years of experience to help clients with their most complex accounting matters, particularly in the areas of mergers and acquisitions, revenue recognition, stock compensation, earnings per share, employee benefits, restructurings, impairments, and financing transactions. Jay is presently PwC's representative on the FASB's Emerging Issues Task Force.Ryan Spencer is a partner at PwC's National office specializing in SEC financial reporting. He has over 20 years of experience serving clients and is a frequent contributor to PwC's publications and communications.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.

The International Sustainability Standards Board (ISSB) published its Consultation on Agenda Priorities in May 2023. Now that the final IFRS S1 and S2 standards have been issued, the ISSB is asking constituents to weigh in on the board's focus areas and research projects for the next two years.What should companies consider when preparing to comment on this request? This week, Heather Horn was joined by Andreas Ohl, PwC's Global Sustainability Technical Leader, to discuss the options laid out in the board's agenda consultation, and the factors companies may want to contemplate in their responses.In this episode, you'll hear discussion of:2:15 - What the ISSB says it is looking to accomplish with this agenda consultation6:52 - A potential research project on biodiversity, ecosystems, and ecosystem services15:02 - A potential research project on human capital17:56 - A potential research project on human rights25:19 - Previous feedback the ISSB and IASB received to consider ways to work jointly on key projects30:18 - The ISSB's separate consultation on enhancing the international applicability of the SASB® Standards32:43 - Final advice for companies wanting to comment on the ISSB agenda consultationLooking for more information on the ISSB and ESG reporting? Check out our podcast with ISSB Vice-Chair Sue Lloyd on the launch of the final ISSB standards. For more on the final standards, read our In brief. Andreas Ohl is a partner in PwC's National Office focused on thought leadership, standard setting, and mergers and acquisitions under US GAAP and IFRS. In addition to his US responsibilities, he leads the sustainability topic team for the PwC global network. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's in-process R&D guide, and has served as a member of the FASB's Valuation Resource Group.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.

The European Commission has adopted a set of proposals, known as the European Green Deal, including the Corporate Sustainability Reporting Directive (CSRD), which marks a new era of sustainability reporting in the EU. Under the CSRD, companies will soon have to report on a wide range of environmental, social and governance matters in compliance with European Sustainability Reporting Standards (ESRS).This week, the European Commission released revised ESRS for public feedback. For this episode, Heather Horn was joined by Andreas Ohl, a PwC National Office Partner and Global sustainability topic team leader and Emily Kirsch, a PwC National Office Director who is following sustainability-related projects from accounting standard setters in the EU, to share their insights. Feedback is due July 7th, 2023.In this episode, you'll hear:1:48 - An overview of the revised European Sustainability Reporting Standards7:52 - The biggest takeaways - including the changes in the proposed standards from earlier drafts12:40 - Considerations of phase-in requirements to help companies apply the standards18:45 - Considerations of interoperability with other sustainability reporting standards, including those from the ISSB, SEC, and GRI23:15 - Recommendations for companies seeking to provide input on the draft standards during the 4-week public comment period26:03 - Expectations for timing of implementation of the finalized standards28:44 - Final advice for companies preparing for implementation of the new standardsFor more information on the revised draft European Sustainability Reporting Standards, read our In brief. Additionally, a replay of the European Commission's presentation on the revised draft ESRS can be found on European Financial Reporting Advisory Group's (EFRAG) website. Lastly, to hear more on the status of the "big three" sustainability proposals (and earn CPE credit), listen to PwC's Q2 2023 Quarterly accounting webcast.Andreas Ohl is a partner in PwC's National Office focused on thought leadership, standard setting, and mergers and acquisitions under US GAAP and IFRS. In addition to his US responsibilities, he leads the sustainability topic team for the PwC global network. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's in-process R&D guide, and has served as a member of the FASB's Valuation Resource Group.Emily Kirsch is a director in PwC's National Office focused on sustainability reporting thought leadership and standard setting in the EU. She has more than 12 years of experience advising both public and private companies in navigating complex accounting and financial reporting topics during periods of change in an organization. Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

Elle Russ chats with Michelle Harris - she has over 20 years of successful leadership in finance and accounting for privately held and publicly traded as well as PE-backed companies with global revenues as high as $6B, Michelle is an expert in team development, change management, business process improvement, strategic thinking, and operational and financial reporting. With her proven track record of success leading organic growth and executing aggressive roll‐up strategies in M&A, Michelle is well known as an international financial leader who leads transactions to successful conclusions seamlessly. Her experience in consumer products, packaging, import/export, health and vision care services, medical devices, and healthcare products. Having started her career in Big 4 auditing, she is an expert at SEC annual and quarterly reporting, accounting, and financial reporting direction and oversees all aspects of audit compliance, governance, regulatory reporting, and accounting operations in accordance with US GAAP and IFRS. Learn more at TheBossTrack.com   SELECTED LINKS: ElleRuss.com TheBossTrack.com

Every Tuesday in May, Jennifer Spang is taking over the podcast to share the latest on income tax accounting — recent global and US tax policy developments, standard setting activity, and tax accounting considerations related to common transactions, such as business combinations and spinoffs.To continue the series, Heather and Jenn are joined by Matt McCann, a partner in PwC's National Office, to share insights on the practical challenges that arise in the tax accounting for spinoff transactions.In this episode, you'll hear discussion of:1:30 - What a spinoff transaction is and the SEC filing requirements, including the preparation of carve-out financial statements7:48 - Considerations related to allocating the consolidated income tax provision to the carved-out entity 18:22 - Other practical tax challenges in carve outs including valuation allowance assessments, uncertain tax positions, and tax sharing agreements 28:30 - The importance of robust disclosures when attributes or assertions are expected to change post spin35:52 - Planning for tax complexities post spin and final advice for companies For more information, read our Income taxes and Carve-out financial statements guides. Additionally, check out our prior podcast on taxes in separate company financial statements. Jennifer Spang is PwC's National Office income tax accounting leader, specializing in tax accounting under US GAAP and IFRS. She has over 25 years of experience helping companies in a variety of industries navigate complex tax accounting matters. Matthew McCann is a partner in PwC's National Office who provides consultation in the areas of revenue recognition and income taxes. He has over 25 years of experience and previously served as the leader of the Consumer & Industrial Products Sector Assurance Practice in North Texas.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 May, Jennifer Spang is taking over the podcast to share the latest on income tax accounting — recent global and US tax policy developments, standard setting activity, and tax accounting considerations related to common transactions, such as business combinations and spin-offs.To continue the series, Heather and Jenn are joined by Kassie Bauman, a managing director in PwC's National Office, to share their insights on income tax accounting for business combinations.In this episode, you'll hear discussion of:2:01 - An overview of the applicable guidance and a summary of steps to take when assessing tax considerations of a business combination7:13 - The importance of the tax status of the entities involved and distinguishing between taxable and non-taxable transactions 20:53 - Identifying and measuring temporary tax differences related to business combinations23:36 - Deferred taxes associated with goodwill and considerations on the valuation allowance assessment34:26 - Other common tax accounting considerations in business combinations including the measurement period, uncertain tax positions, and indemnifications 37:32 - Final thoughts, including deal economics considering tax For more information, read our Business combinations and Income taxes guides, and check out a prior podcast on accounting for business combinations. Jennifer Spang is PwC's National Office income tax accounting leader, specializing in tax accounting under US GAAP and IFRS. She has over 25 years of experience helping companies in a variety of industries navigate complex tax accounting matters. Kassie Bauman is a managing director in PwC's National Office who consults on tax accounting under US GAAP and IFRS. Kassie has more than 20 years of auditing and accounting experience addressing complex technical 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.

Every Tuesday in May, Jennifer Spang is taking over the podcast to share the latest on income tax accounting — recent global and US tax policy developments, standard setting activity, and tax accounting considerations related to common transactions, such as business combinations and spin-offs.To continue the series, Heather and Jenn are joined by Kassie Bauman, managing director in PwC's National Office, to share insights on income tax accounting for equity method investments.In this episode, you'll hear discussion of:1:31 - An overview of the equity method of accounting under GAAP for book purposes6:21 - Book versus tax basis differences and when to record deferred taxes on equity method investments8:52 - Income tax accounting implications when an investee becomes a subsidiary (or vice versa) through changes in ownership and control13:43 - Income tax considerations related to equity method investments in partnerships, including the “look-through” policy election and inside and outside tax basis differences25:45 - Final advice and common income tax questions on equity method investmentsFor more information, read our Equity method and Income taxes guides. Additionally, check out our prior podcasts, Part 1 and Part 2, on applying the equity method.Jennifer Spang is PwC's National Office income tax accounting leader, specializing in tax accounting under US GAAP and IFRS. She has over 25 years of experience helping companies in a variety of industries navigate complex tax accounting matters. Kassie Bauman is a managing director in PwC's National Office who consults on tax accounting under US GAAP and IFRS. Kassie has more than 20 years of auditing and accounting experience addressing complex technical 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.

Every Tuesday in May, Jennifer Spang is taking over the podcast to share the latest on income tax accounting — recent global and US tax policy developments, standard setting activity, and tax accounting considerations related to common transactions, such as business combinations and spin-offs.To continue the series, Jenn shares insights on the FASB's recent exposure draft on improvements to income tax disclosures.In this episode, you'll hear discussion of:1:30 - An overview of the FASB's income tax disclosure project4:50 - The proposed disaggregated disclosures for cash taxes paid and the introduction of eight specific categories of reconciling items in the rate reconciliation 8:11 - The questions and areas of concern that have been raised by companies 15:18 - The judgment required in determining the categorizations in the rate reconciliation 19:24 - Other noteworthy proposed additions and deletions to the current required income tax disclosures22:51 - The expected effective date and transition requirements27:00 - Final advice for organizations as they assess the FASB's proposed disclosures For more information, read our publication on the FASB's exposure draft and check out a prior podcast on income tax disclosures.Jennifer Spang is PwC's National Office income tax accounting leader, specializing in tax accounting under US GAAP and IFRS. She has over 25 years of experience helping companies in a variety of industries navigate complex tax 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.

With so much focus on the SEC's climate disclosure proposal in the US this year, climate has taken the attention of many preparers – and for good reason. However, another topic, natural resources and biodiversity, is coming to the forefront as governments and companies begin to understand the size of the problem, both in terms of its potential impact on business and the potential impact of business on biodiversity. This week, Heather Horn was joined by Alan McGill, a partner in PwC's Global Sustainability, Reporting, Measurement and Assurance practice, and PwC Global sustainability topic team leader Andreas Ohl to discuss the measurement of and reporting on the topics of nature and biodiversity.In this episode, you'll hear discussion of:2:05 - The current state of company readiness to report on nature and biodiversity8:19 - How all types of businesses exhibit indirect dependencies on nature and exposure to nature risks14:08 - Measuring biodiversity-related value in your company's operations21:07 - Definition of natural capital and overview of its financial impacts30:11 - The importance to businesses in every sector of developing nature positive strategies36:21 - Assurance on data and metrics on nature and biodiversity topics45:43 - Final advice for organizations wanting to become nature positiveInterested in more background on the business value drivers inherent in nature and biodiversity? Listen to our previous podcast in this series, and check out PwC's global nature hub here.Alan McGill is a partner in PwC UK and is the Global Sustainability Reporting, Measurements, and Assurance Leader. With over 15 years' experience delivering sustainable business projects, Alan's work focuses on the impact of sustainability issues on business, and providing organizations with attestation services over their reporting on relevant sustainability issues.Andreas Ohl is a partner in PwC's National Office focused on thought leadership, standard setting, and mergers and acquisitions under US GAAP and IFRS. In addition to his US responsibilities, he leads the sustainability topic team for the PwC global network. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's in-process R&D guide, and has served as a member of the FASB's Valuation Resource Group.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 May, Jennifer Spang is taking over the podcast to share the latest on income tax accounting — recent global and US tax policy developments, standard setting activity, and tax accounting considerations related to common transactions.To kick off the series, Heather Horn and Jenn are joined by Pat Brown, the co-leader of PwC's Washington National Tax Services practice, to share insights on the OECD and the US minimum corporate tax legislation. In this episode, you'll hear discussion of:2:09 - An overview of OECD's Pillar Two model rules4:30 - The status of Pillar Two's enactment in various jurisdictions10:48 - The differences between the US corporate alternative minimum tax and the OECD Pillar Two minimum tax20:58 - The response from the FASB and IASB to the accounting implications of Pillar Two enactment27:45 - What companies can do now considering the uncertainty of enactment of Pillar Two37:54 - The different treatment of tax credits under the Inflation Reduction Act and Pillar Two 56:19 - Final advice for organizations on global tax policyFor more information, read our publications on what you need to know about Pillar Two, the responses from the FASB and IASB, and accounting for the Inflation Reduction Act. Jennifer Spang is PwC's National Office income tax accounting leader, specializing in tax accounting under US GAAP and IFRS. She has over 25 years of experience helping companies in a variety of industries navigate complex tax accounting matters. Pat Brown is PwC's Washington National Tax Services co-leader. Prior to joining PwC, he spent 16 years in the private sector, including a role as the director of tax policy for a Fortune 50 company. Pat has also served in the US Treasury's Office of Tax Policy as an attorney-advisor and as Associate International Tax Counsel. 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.

With so much focus on the SEC's climate disclosure proposal in the US this year, climate has taken the attention of many preparers – and for good reason. However, another topic, natural resources and biodiversity, is coming to the forefront as governments and companies begin to understand the size of the problem, both in terms of its potential impact on business and the potential impact of business on biodiversity. This week, Heather Horn was joined by Tom Beagent, a partner in PwC's Global Sustainability and Climate Change practice, and PwC National Office partner and Global sustainability topic team leader Andreas Ohl. They bring the vantage point of the CFO to bear on the topics of nature and biodiversity and highlight the drivers of sustainable business value embedded in these topics.In this episode, you'll hear discussion of:2:28 - Perspectives from conversations with CFOs on biodiversity and nature6:53 - Defining nature and the interconnected relationships among the economy, the value chain of business, and nature17:47 - Identifying nature- and biodiversity-related risks – and opportunities – in your company's operations19:28 - How market prices charged for using natural resources today may be well below the ultimate cost to the global economy25:13 - The differences between “Net Positive” nature and biodiversity initiatives and “Net Zero” climate policies34:26 - Investors' interest in natural resources and biodiversity, and the metrics companies can use to disclose their dependencies on nature46:56 - Where companies should start in contemplating risks and opportunities in this spaceInterested in more background on the main issues related to nature and biodiversity? Listen to our previous podcast in this series, and check out PwC's global nature hub here.Tom Beagent is a partner in PwC UK's Global Sustainability and Climate Change practice, specializing in integrating natural and social capital analysis into decision making for sustainable growth. With over 20 years' experience delivering sustainable business projects, he also co-developed PwC's Total Impact Measurement and Management methodologies (TIMM), which allows organizations to measure and value the social, environmental, economic, and fiscal impacts resulting from their operations, as well as their extended value chains. Andreas Ohl is a partner in PwC's National Office focused on thought leadership, standard setting, and mergers and acquisitions under US GAAP and IFRS. In addition to his US responsibilities, he leads the sustainability topic team for the PwC global network. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's in-process R&D guide, and has served as a member of the FASB's Valuation Resource Group.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 April, Pat Durbin took over the podcast to share insights and go back to basics on some critical accounting areas, including contingent liabilities, subsequent events, and inventory.In this episode, Heather Horn and Pat are joined by Jay Seliber to discuss identifying whether a service arrangement with a public-sector grantor would be in scope of ASC 853 on service concessions. They cover the accounting challenges that are associated with private-sector enterprises operating public infrastructure.In this episode, you'll hear discussion of:1:54 - What a service concession is, and who and what is in scope of the ASC 853 guidance 14:22 - Common types of private-public service arrangements 18:30 - How to think about applying the revenue recognition model to these arrangements and challenges when there are multiple performance obligations and variable fees 32:24 - How to recognize different types of expenses under the guidance 39:25 - The development of the US GAAP guidance and a comparison to IFRS45:03 - Final advice when accounting for service concessions For more information, read the service concessions chapter in both our revenue recognition guide and our IFRS and US GAAP: similarities and differences guide. Additionally, listen to our revenue toolkit podcast miniseries.Pat Durbin is a Deputy Chief Accountant in PwC's National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.Jay Seliber is a partner in PwC's National Office. He leverages over 30 years of experience to help clients with their most complex accounting matters, particularly in the areas of mergers and acquisitions, revenue recognition, stock compensation, and employee benefits.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 April, Pat Durbin is taking over the podcast sharing insights and going back to basics on some critical accounting areas, including contingent liabilities, subsequent events, and inventory.In this episode, Heather Horn and Pat discuss key accounting concepts and judgments in accounting for and valuing inventory. In this episode, you'll hear discussion of:1:34 - Different methods to determine inventory costs and the art of inventory cost accounting 19:27 - How to account for changes in cost flow assumptions or composition of costs25:55 - Key judgments in valuation and impairment of inventory 33:19 - New ways to finance inventory 35:29 - Final advice for accounting for inventory For more information, read our Inventory guide. Pat Durbin is a Deputy Chief Accountant in PwC's National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.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.

With so much focus on the SEC's climate disclosure proposal in the US this year, climate has taken the attention of many preparers – and for good reason. However, another topic, natural resources and biodiversity, is coming to the forefront as governments and companies begin to understand the size of the problem, both in terms of its potential impact on business and the potential impact of business on biodiversity. The sustainability reporting standards that many companies will need to apply, such as the European Sustainability Reporting Standards and the International Sustainability Reporting Standards, include disclosure requirements on biodiversity. This week, Heather Horn was joined by PwC National Office partner and Global sustainability topic team leader, Andreas Ohl, to kick off a new podcast miniseries, “Becoming nature positive.” This first episode illuminates the types of issues that the term “biodiversity” encompasses and previews the rest of the series.In this episode, you'll hear discussion of:2:10 - The drivers behind the increasing importance of biodiversity6:43 - Definitions and examples to illustrate the concepts of biodiversity and nature positivity16:22 - Why even companies outside of the agriculture industry should prioritize biodiversity24:34 - How the issues of biodiversity and climate change are related – and not related30:07 - Additional topics that will be covered in future episodes of this miniseriesWant to learn more? PwC recently commented on the revisions to the GRI biodiversity standard. Andreas Ohl is a partner in PwC's National Office focused on thought leadership, standard setting, and mergers and acquisitions under US GAAP and IFRS. In addition to his US responsibilities, he leads the sustainability topic team for the PwC global network. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's in-process R&D guide, and has served as a member of the FASB's Valuation Resource Group.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 April, Pat Durbin is taking over the podcast sharing insights and going back to basics on some critical accounting areas, including contingent liabilities, subsequent events, and inventory.In this episode, Heather Horn and Pat are joined by Latina Fauconier to share insights on how to identify and evaluate subsequent events. Assessing whether information received between the balance sheet date and the issuance of the financial statements needs to be accounted for and/or disclosed can be challenging, and is more important than ever in this current environment. In this episode, you'll hear discussion of:1:43 - An overview of the accounting guidance and key judgments in evaluating subsequent events4:55 - Complexities in determining if conditions existed as of the balance sheet date11:08 - The importance of having processes and controls in place to monitor subsequent events18:27 - Common examples of subsequent events and the impact on forward-looking estimates and assessments 29:04 - Considerations for disclosures 33:34 - Final advice for identifying and evaluating subsequent events For more information, listen to our previous podcast on subsequent events and read the subsequent events chapter of our Financial statement presentation guide. Pat Durbin is a Deputy Chief Accountant in PwC's National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.Latina Fauconier is a partner on tour in PwC's National Office, focusing on revenue and compensation matters. She advises clients and engagement teams on a wide range of complex accounting and financial reporting matters under US GAAP and IFRS. She was previously a Professional Accounting Fellow in the Office of the Chief Accountant at the SEC. 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 April, Pat Durbin is taking over the podcast sharing insights and going back to basics on some critical accounting areas, including contingent liabilities, subsequent events, and inventory.To kick off the series, Heather Horn and Pat are joined by Tom Barbieri, our US Chief Accountant, to bring you the latest on one of the oldest and most foundational standards, FAS 5, which is now Topic 450, Contingencies.  In this episode, you'll hear discussion of:6:03 - An overview of the accounting framework and key judgments in assessing the likelihood of loss 10:21 - What to consider when measuring a loss contingency  16:06 - Recognition and presentation of insurance recoveries 18:49 - When gain contingencies may be recognized  27:04 - What companies should consider in disclosing contingencies 32:00 - Final advice when accounting for and disclosing contingencies For more information, read the Contingencies chapter of our Financial statement presentation guide. Pat Durbin is a Deputy Chief Accountant in PwC's National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.Tom Barbieri is the Chief Accountant in the Firm's National Office and has over 30 years of experience advising large financial services and multinational corporations on complex accounting issues. He leads the Accounting & SEC Services Group, which is focused on supporting our clients and engagement teams in navigating complex technical accounting and financial reporting matters. Tom is also a member of the Financial Accounting Standards Advisory Council.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 February, Andreas Ohl, PwC's Global ESG Technical Leader, took over the podcast and talked all about one of a company's most valuable intangible assets, human capital. He discussed what it is and why it matters, how it's treated in financial and ESG reporting, and how its value is reflected in deals. In this final episode of the miniseries, Heather Horn and Andreas are joined by Carrie Duarte, a PwC workforce transformation specialist, to discuss how sophisticated acquirers are creating value through human capital in transactions. They also share insights on how investing in the workforce may create both social value creation, the “S” in ESG, and financial value creation. In this episode, you'll hear discussion of:6:30 - Trends in the deals market that are driving outsized returns14:21 - Practical and tactical examples of opportunities identified through deals to create value through the workforce23:37 - The importance of providing a “good job” and managing the investment in the workforce31:37 - How reflecting the voice of the worker in the company's labor management strategy creates social and financial value creation Listen to earlier episodes in this series on the impact of recent demographic trends on the investment in human capital, how a company's largest asset may not be on balance sheet, and on communicating value through ESG reporting. Andreas Ohl is a partner in PwC's National Office focused on thought leadership, standard setting, and mergers and acquisitions under US GAAP and IFRS. In addition to his US responsibilities, he leads the sustainability topic team for the PwC global network. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's in-process R&D guide, and has served as a member of the FASB's Valuation Resource Group.Carrie Duarte is a partner leading PwC's Organization and Workforce Transformation Deals team. Carrie helps CEOs take advantage of the catalyzing event of a transaction to transform their organizations and workforces. 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 February, Andreas Ohl, PwC's Global ESG Technical Leader, will be taking over the podcast and talking all about one of a company's most valuable intangible assets, human capital. He will discuss what it is and why it matters, how it's treated in financial and ESG reporting, and how its value is reflected in deals. In this episode, Heather Horn and Andreas are joined by Sheri Wyatt, a PwC sustainability specialist, to discuss how we are seeing companies communicate the value of human capital through ESG reporting. In this episode, you'll hear discussion of:7:24 - Best practices in ESG reporting today  11:49 - The importance of using metrics that are tied to value creation in ESG reporting on human capital18:16 - How ESG reporting may bridge the gap in financial reporting (because this investment may not be on balance sheet) 23:32 - Insights on human capital disclosures reported under the SEC's current rule28:30 - Expectations on the future of human capital reporting considering proposals from the ISSB and EFRAG (CSRD) and the expected proposal from the SEC39:15 - Challenges and opportunities for companies in communicating the value of their workforceListen to earlier episodes in this series on the impact of recent demographic trends on the investment in human capital and how a company's largest asset may not be on balance sheet. And stay tuned for one more episode in the series. Andreas Ohl is a partner in PwC's National Office focused on thought leadership, standard setting, and mergers and acquisitions under US GAAP and IFRS. In addition to his US responsibilities, he leads the sustainability topic team for the PwC global network. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's in-process R&D guide, and has served as a member of the FASB's Valuation Resource Group.Sheri Wyatt is a partner in PwC's Deals practice and a sustainability specialist who helps clients execute on their ESG reporting strategies, including how to navigate the evolving regulatory landscape both in the US and abroad. She has over 20 years of experience advising companies on the adoption of new accounting and financial reporting standards, from assessing current state through operationalizing compliance with new standards and policies.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 February, Andreas Ohl, PwC's Global ESG Technical Leader, will be taking over the podcast and talking all about a company's most valuable intangible asset, human capital. He will discuss what it is and why it matters, how it's treated in financial and ESG reporting, and how its value is reflected in deals. In this episode, Heather Horn and Andreas discuss the current financial reporting landscape when it comes to human capital. In this episode, you'll hear discussion of:1:35 - How human capital is largely shown as an expense in the external financial statements6:15 - Insights on how internal reporting can help companies measure the return on their investment in human capital11:55 - The disconnect that may exist between a company's market value and book value 15:58 - Why this intangible asset is generally not on the balance sheet today28:20 - What companies and standard setters can do to give better insights into the value of human capitalListen to the earlier episode in this series on the impact of recent demographic trends on the investment in human capital, and stay tuned for more episodes in the series. Also read our point of view publication on making intangibles count. Andreas Ohl is a partner in PwC's National Office focused on thought leadership, standard setting, and mergers and acquisitions under US GAAP and IFRS. In addition to his US responsibilities, he leads the sustainability topic team for the PwC global network. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's in-process R&D guide, and has served as a member of the FASB's Valuation Resource Group.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 February, Andreas Ohl, PwC's Global ESG Technical Leader, will be taking over the podcast and talking all about a company's most valuable intangible asset, human capital. He will discuss what it is and why it matters, how it's treated in financial and ESG reporting, and how its value is reflected in deals. To kick off the series, host Heather Horn and Andreas were joined by Zain Siddiqui, a senior economist with PwC Intelligence, to break down the macroeconomic and demographic trends leading to the scarcity of human capital seen today. They'll also discuss how companies should think about human capital (perhaps differently than before) given these trends. In this episode, you'll hear discussion of:2:27 - What led to the abundant labor supply of the last few decades7:15 - The impact of COVID on the current labor force and the fundamental shift in worker preferences12:43 - How these demographic trends impact economic growth 14:44 - How to create value for your business by viewing human capital as an investment and not an expenditure 25:17 - What investing in the workforce means for businesses38:10 - Final advice when looking aheadStay tuned for upcoming podcasts in this series. Listen to our previous podcast with PwC Intelligence for a broader geopolitical and macroeconomic update.  Andreas Ohl is a partner in PwC's National Office focused on thought leadership, standard setting, and mergers and acquisitions under US GAAP and IFRS. In addition to his US responsibilities, he leads the sustainability topic team for the PwC global network. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's in-process R&D guide, and has served as a member of the FASB's Valuation Resource Group.Zain Siddiqui is a senior economist for PwC Intelligence with a specialty in macroeconomics and finance. He advises stakeholders and clients on the business implications of emerging macro and geopolitical vulnerabilities, and helps them shape business strategy. His research has appeared in books on international economic policy and macroeconomic journals.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.

In this episode, PwC partners Chris Rhodes and Andreas Ohl join us to discuss our 2023 deals outlook and related accounting considerations. Included are insights on how dealmakers are thinking about value creation as they navigate macroeconomic uncertainties and what finance teams need to know as deals are happening. In this episode, you'll hear discussion of:1:21 - The current deals landscape and outlook for 20239:30 - Headwinds facing the deals market from the current macroeconomic and geopolitical environment14:12 - Accounting considerations for deal transactions in this type of macroeconomic environment28:36 - How successful dealmakers still find opportunities in divestitures33:58 - Final advice for companies considering deals in 2023Want to learn more about the 2023 deals outlook? Watch a replay of our webcast or read our report. And for more on accounting considerations, listen to previous podcasts on impairment accounting, including one on impairment of goodwill and other intangibles. Chris Rhodes is a partner in PwC's Deals practice. He provides commercial structuring, valuation, and accounting advice for a variety of transactions under both US GAAP and IFRS. He concentrates on delivering strategic transactions such as acquisitions, divestitures, and joint ventures, along with capital raising, capital restructuring, and other financial engineering, including risk management. Andreas Ohl is a partner in PwC's National Office focused on thought leadership, standard setting, and mergers and acquisitions under US GAAP and IFRS. In addition to his US responsibilities, he leads the sustainability topic team for the PwC global network. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's in-process R&D guide, and has served as a member of the FASB's Valuation Resource Group.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.

The International Sustainability Standards Board (ISSB) has been working quickly through deliberations on its proposals to create a comprehensive global baseline of sustainability disclosures.Since we last covered the ISSB's deliberations in October 2022, the Board has met four more times for redeliberations on draft standards –  and each meeting was chock full of action. This week, Heather Horn was joined by Andreas Ohl and Katie Woods to unpack the dialogue and tentative decisions reached within these meetings.In this episode, our guests discuss:1:42 - The status of the ISSB exposure drafts and progress toward finalization8:27 - An overview of discussions at recent ISSB meetings13:30 - How estimates may be handled in sustainability reporting17:05 - Consistency of timelines between financial and sustainability reporting22:21 - Clarifications the ISSB is considering on the concept of enterprise value32:44 - Climate-related disclosures, including GHG intensity measures42:46 - Other topics proposed for future standard-setting considerationLooking for more information on the ISSB and ESG reporting? Check out our previous podcast on responses to the ISSB exposure drafts, as well as our In the loop on navigating the ESG landscape. Andreas Ohl is a partner in PwC's National Office focused on thought leadership, standard setting, and mergers and acquisitions under US GAAP and IFRS. In addition to his US responsibilities, he leads the sustainability topic team for the PwC global network. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's in-process R&D guide, and has served as a member of the FASB's Valuation Resource Group.Katie Woods is a Director in PwC's Global Accounting Consulting Services group and advises on ESG and International accounting standards. Katie specializes in the new and emerging ESG reporting frameworks working across the PwC Network. She has over 30 years of experience working with a broad range of companies. Katie speaks regularly on a range of ESG and accounting topics at national and international seminars.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.

In each episode of our Year-end toolkit series, our guests discuss key areas of the year-end reporting process.In this episode, PwC partner Jennifer Spang joins us to discuss year-end income tax accounting reminders and what you need to know about recent tax law changes and standard setting activity. In this episode, you will hear reminders on:1:12 - Valuation allowances and the pressure on realizability from rising interest rates5:42 - Goodwill impairment and the simultaneous equation8:08 - Tax law changes, including proposed foreign tax credit regulations13:02 -  Developments related to the OECD's Pillar II framework17:29 - The Inflation Reduction Act and what it means for 2023 reporting27:31 - Standard setting developments, including the upcoming Exposure Draft on the FASB's income tax disclosure project 36:06 - Final advice for year-end reporting and the importance of staying in front of tax law changesStay tuned for the next episode in our Year-end toolkit series. Listen to previous podcasts in our Tax toolkit series in which we discuss valuation allowances and uncertain tax positions. For more information read our summary of accounting considerations in uncertain times, our summary of Pillar II, and our Income taxes guide. In addition, check out our Financial statement presentation guide for information on the presentation and disclosure of income taxes.Jennifer Spang is a partner in PwC's National Office who serves as the income tax accounting leader, specializing in tax accounting under US GAAP and IFRS. She has over 25 years of experience helping companies in a variety of industries navigate complex tax 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.

In each episode of our Year-end toolkit series, our guests discuss key areas of the year-end reporting process.In this episode, PwC National Office leaders join us to discuss what is top of mind for each of them on year-end reporting, including the impact of macroeconomic and geopolitical events. In this episode, you will hear reminders on:1:39 - Rising interest rates and their influence on nonfinancial asset impairment and debt modifications13:36 - The effect of market volatility on debt and equity investments and stock compensation 23:30 - The impact of inflation on revenue and inventory accounting29:59 - The importance of robust disclosures related to macroeconomic events33:49 - The effect of supply chain disruptions on the business39:09 - Accounting issues that arise in business or asset dispositions as well as restructurings amid recession concerns 51:15 - Assessing subsequent eventsStay tuned for the next episode in our Year-end toolkit series. Listen to our previous 2022 SEC comment letter podcast series for more insights related to SEC reporting, including comments letter trends related to current events, and our previous impairment toolkit podcast series, including financial and nonfinancial asset impairment.Beth Paul is a Deputy Chief Accountant in PwC's National Office responsible for a team of consultants that specialize in business combinations and related areas, such as consolidations, disposals, impairments, and segment reporting. 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.Pat Durbin is a Deputy Chief Accountant, leading the revenue and liabilities division in PwC's National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.Kyle Moffatt is PwC's Professional Practice leader, leading a team responsible for working with standard setters and regulators as well as delivering brand-defining thought leadership and educational materials. He also consults with engagement teams and audit clients on SEC reporting matters. Before PwC, Kyle spent almost 20 years with the SEC, most recently as Chief Accountant and Disclosure Program Director in the Division of Corporation Finance.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. Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

In each episode of our 2022 SEC comment letter trends series, our guests bring you the latest themes in comment letters from the SEC's Division of Corporation Finance.This week, Heather Horn was joined by PwC partner Pat Durbin to discuss emerging comment letter trends related to current macroeconomic and geopolitical events. In this episode you'll hear discussion of:1:35 - An overview of the current events trending in recent SEC staff comments4:16 - The importance of consistency of information across filed information and other investor communications 6:43 - Key economic drivers companies should consider in the context of their business and sufficiency of quantitative and qualitative disclosures  9:44 - The impacts of supply chain disruptions and common SEC staff comments11:56 - Material risks resulting from inflation and trending SEC staff comments including on a company's outlook13:58 - How rising interest rates affect companies and what the SEC staff is commenting on17:38 - The areas of focus in the “Dear CFO” sample letter related to the Russia-Ukraine war20:10 - Advice for companies as they look ahead to year end Want to learn more? Check out our analysis of SEC comment letter trends and stay tuned for more episodes in the series. For further information on the impact of recent current events, listen to our Q3 2022 economic and geopolitical update podcast and read our In depth on accounting in uncertain economic times.Pat Durbin is a Deputy Chief Accountant, leading the revenue and liabilities division in PwC's National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.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.