What’s next in tech for finance? Think blockchain

12/03/20 • 31 min

Technology continues to reshape our world and has been accelerated by the pandemic. As you rethink processes for the new environment, you may be asking how technology can help improve efficiency and effectiveness. This podcast is the next episode in the second season of our What’s next? podcast series for CFOs, controllers — anyone in finance. This season we’re focusing on what’s next in tech for the finance professional — discussing the benefits of technology through the lens of the finance function. In this episode, host Heather Horn sits down with Scott Likens, PwC’s New Services and Emerging Technology Leader, to discuss the range of business benefits blockchain technology offers.
Topics include:

0:54 - Overview. Blockchain is a somewhat new, complex technology. We begin with the fundamentals: what it is and how it works.
5:35 - How it’s being used today. As more finance functions begin to integrate blockchain, we look at how it’s being used to eliminate intermediaries, accelerate timelines, and increase transparency.
17:56 - Where to start. Knowing where to begin can be overwhelming. Scott shares his thoughts on starting small, repeatedly testing, and building internal knowledge around the values of blockchain technology.
22:25 - Challenges. We discuss the potential adoption barriers, such as privacy concerns, and emphasize the importance of collaboration and process controls.
25:50 - What’s next? As we continue to get more digital, what does tomorrow look like for blockchain applications? We close by sharing our thoughts.

Scott Likens is PwC’s New Services and Emerging Technology Leader helping clients in diverse industries use emerging technologies (artificial intelligence, blockchain, customer experience, and other digital strategies) to grow their business. For over 20 years, Scott has worked in enterprise technology, including digital strategy and transformation, technology-enhanced business and IT strategy, enterprise architecture as it relates to emerging tech, agile engineering, e-commerce, advanced analytics, mobile technologies, and social customer engagement.

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].

0:54 - Overview. Blockchain is a somewhat new, complex technology. We begin with the fundamentals: what it is and how it works.
5:35 - How it’s being used today. As more finance functions begin to integrate blockchain, we look at how it’s being used to eliminate intermediaries, accelerate timelines, and increase transparency.
17:56 - Where to start. Knowing where to begin can be overwhelming. Scott shares his thoughts on starting small, repeatedly testing, and building internal knowledge around the values of blockchain technology.
22:25 - Challenges. We discuss the potential adoption barriers, such as privacy concerns, and emphasize the importance of collaboration and process controls.
25:50 - What’s next? As we continue to get more digital, what does tomorrow look like for blockchain applications? We close by sharing our thoughts.

Previous Episode

Payments to customers? Receipts from vendors? Help!

The accounting is relatively straightforward when cash is received from a customer or paid to a vendor. But what if you receive cash from the vendor or pay the customer? When everything is reversed, the accounting is not as easy and it may be more common than you expect. In this episode, Angela Fergason and Jay Seliber, partners in PwC’s National Office, join host Heather Horn to help you think through the accounting implications.
Topics include:

0:44 - Overview. Before we begin navigating the accounting guidance, we set the stage by talking about why this topic generates so many questions and share common examples of transactions when this might occur.
4:50 - Consideration paid to a customer (ASC 606). Angela explains the vendor’s accounting when payments are made to a customer, touching on related judgments and the timing of recognition.
15:59 - Consideration received from a vendor (ASC 705-20). Switching gears, Jay walks us through the guidance for situations when a customer receives money from a vendor, touching on the different models and sharing illustrative examples.
29:52 - Final reminders. We close by sharing helpful reminders, highlighting the importance of assessing all of the relationships involved and not merely jumping to a default model.

Angela Fergason is a partner in PwC's National Office with over 20 years of experience who specializes in accounting for revenue and employee compensation arrangements. She is a frequent speaker on accounting and financial reporting topics and is a contributor to many PwC National Office publications, including our accounting guides on revenue and stock-based compensation.

Jay Seliber is a partner in PwC’s National Accounting Services group with over 30 years of experience. He helps clients with their most complex accounting matters, particularly in the areas of revenue recognition, M&A, stock compensation, employee benefits, restructurings, impairments, and financing transactions.

Next Episode

The quarter close - fourth quarter 2020

Text us your thoughts on this episode

With the results of the 2020 US election decided, it appears that Democrats will retake the White House and maintain control of the House - although control of the Senate will remain undecided until January 2021. While considering the potential tax, regulatory, and trade implications of the US election, many organizations continue to be challenged by the economic and human effects of the COVID-19 pandemic.

In this environment, many companies are looking to increase liquidity, including through restructuring programs, lease renegotiations, or strategic disposals of assets or businesses, and in some cases are considering the abandonment or sublease of unused real estate. We discuss accounting considerations for each of these in this edition.

Listen to this edition of The quarter close as we highlight these and other relevant accounting and reporting topics you should consider as we close-out 2020 and begin the year-end financial reporting season.
Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected].