PwC's accounting podcast - FASB update: Responding to COVID-19 accounting issues and more

FASB update: Responding to COVID-19 accounting issues and more

06/09/20 • 22 min

How has the FASB addressed accounting concerns during the COVID-19 crisis? To help keep preparers well-informed, PwC director Maria Constantinou joins Heather Horn to discuss recently-issued FASB guidance regarding COVID-19 and other areas of standard setting.

Topics include:

2:01 - Effective date deferral. In the midst of the COVID-19 pandemic, the FASB understood that preparers needed help and, therefore, approved a deferral of the revenue and leases standards for some companies. Maria walks through the details.
8:42 - COVID-19 issues. Maria covers how the FASB has been working to address the accounting for the impacts of COVID-19, including the recently-issued FASB staff Q&A on hedge accounting.
15:02 - Other active projects. While the formal agenda prioritization project has not happened yet, there are other projects moving forward to be aware of. Maria shares the highlights.

Maria Constantinou is a director in PwC’s National office, responsible for monitoring the FASB’s standard-setting activities and is a frequent contributor to PwC's thought leadership efforts. She is also a Digital Accelerator, responsible for automating and enhancing knowledge sharing using the latest technology.

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, as well as periodic webcasts for the power and utilities industry. With over 25 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 [email protected].

Topics include:

2:01 - Effective date deferral. In the midst of the COVID-19 pandemic, the FASB understood that preparers needed help and, therefore, approved a deferral of the revenue and leases standards for some companies. Maria walks through the details.
8:42 - COVID-19 issues. Maria covers how the FASB has been working to address the accounting for the impacts of COVID-19, including the recently-issued FASB staff Q&A on hedge accounting.
15:02 - Other active projects. While the formal agenda prioritization project has not happened yet, there are other projects moving forward to be aware of. Maria shares the highlights.

Previous Episode

Non-GAAP disclosures and COVID-19: What you need to know

With reductions to revenue and disruptions to supply chains, companies started to feel the economic effects of COVID-19 at the end of the first quarter. How did this affect how they reported their quarterly results? We’re here to share some observations.

In this episode, Heather Horn is joined by Wayne Carnell to discuss how companies addressed the impact of the virus, including the use of non-GAAP measures, in their reports.

Topics include:

0:34 - Overview. We begin by sharing the various ways companies disclosed the impact of COVID-19 in their most recent filings.
3:19 - Non-GAAP. Wayne highlights the rules regarding non-GAAP disclosures and why companies like them. He also discusses how companies approached communicating the impact of COVID-19.
14:00 - MD&A and notes. How can companies provide investors with information about COVID-19 that would not be appropriate to include in the financial statements? Wayne explains.
22:53 - What’s next? As we look forward to the second quarter, Wayne discusses what companies should consider in identifying items related to COVID-19.

Wayne Carnall is a former Chief Accountant of the Division of Corporation Finance at the U.S. Securities and Exchange Commission. Wayne has broad and extensive financial reporting and regulatory experience involving domestic and international companies in a wide range of industries. Having served in that role during the financial crisis, Wayne worked with other senior officials at the SEC and other agencies and organizations to address and resolve financial reporting matters of unprecedented complexity in a dynamic political environment.

Next Episode

What’s next? PwC’s US Chair on emerging stronger from crisis

Amid the excitement around getting back to a semblance of business as usual, you’re probably asking yourself a lot of questions—as in, what is the new normal and where do I go from here? This podcast is the first episode in a new series for CFOs, controllers—really, anyone in finance—asking big questions, like: how do we emerge from a crisis stronger than before? Each week, we’ll focus on a different area that may need your focus in this period of recovery. This week, host Heather Horn sits down with Tim Ryan, PwC’s US chairman and senior partner, to introduce the series and find out what the view looks like from his chair.

Topics include:

0:59 - Current events. Tim begins by sharing his perspective on the current race relations crisis and how COVID-19 impacted PwC.
7:41 - Crisis management. These days, everyone has a role in crisis management. Tim examines how to prepare for challenging times by boiling it down to two important actions.
13:58 - Strategy. How can you make decisions quickly and innovate when responding to crisis? Tim explains and shares real world examples.
18:07 - Digital transformation. There are three reasons why digital transformation is important. Tim shares his views on investing in technology during times of crisis.
23:29 - Culture. Tim talks about the value of a culture that allows employees to fail fast and move on. He also tackles how to maintain a positive culture in a remote environment.
27:23 - Our strength is our people. Employees are the ones who make things happen. Tim talks about the importance of supporting your people, and what returning to the office may look like.
35:05 - Wrap-up. Tim breaks down the crisis and summarizes his most important takeaways.

Tim Ryan is US Chairman and Senior Partner. Previously, he served as Vice Chairman and the Markets, Strategy and Stakeholders Leader at PwC, having responsibility for the firm’s strategy function and stakeholder relationships, including investor relations, regulatory affairs, public policy, corporate responsibility, and human capital.