COVID-19: Financial asset impairment questions, answered

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04/01/20

To help navigate uncertain times, hear PwC partners discuss financial asset impairment considerations as companies look to their March 31 reporting.

If you’re unsure about how COVID-19 might impact your financial reporting, you're not alone. In response to the COVID-19 crisis, this podcast is part of a series that will address questions received surrounding the impacts to financial statements. Heather Horn is joined by PwC partners Tom Barbieri, Chip Currie, and Matt Sabatini to focus on the impairment models for various financial instruments.

Topics include:

  • 0:50  - Available-for-sale (AFS) debt securities. The current economic environment has companies focused on the application of impairment models. Chip and Tom begin by discussing the model for AFS debt securities, as well as give some practical considerations given today’s environment.  

  • 7:19 - Equity securities using the measurement alternative. Next, we discuss what companies should consider regarding the impairment model for equity investments accounted for using the measurement alternative.
  • 12:30 - Equity method investments. Turning to the last financial instrument in our discussion, Matt provides thoughts on the impairment model for equity method investments and how companies will need to exercise judgment in their evaluation.

About our guests

Tom Barbieri

Tom Barbieri is a PwC partner and the Financial Instruments Accounting Leader in PwC’s National Office with over 29 years of experience advising clients on complex accounting and financial reporting issues relating to financial instruments. During Tom’s tenure in National, he has been at the forefront of emerging accounting issues and has regular interactions with the Financial Accounting Standards Board, SEC, and other nationally renowned accounting experts.

Chip Currie is a Partner in PwC’s National Office with over 20 years of experience assisting companies in resolving complex business and accounting issues. He concentrates on the accounting for financial instruments for both current and emerging standards and works with many of the firm's largest financial services clients and a number of non-financial service clients on treasury-related matters.

Matt Sabatini is a partner in PwC's National Office with nearly 20 years of experience helping clients and engagement teams navigate the accounting and financial reporting for complex transactions. He specializes in the accounting for M&A, corporate reorganizations, recapitalizations, joint ventures, and other investments.

About our host

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.

Contact us

Heather Horn

Heather Horn

US Strategic Thought Leader, National Professional Services Group, PwC US

David Schmid

David Schmid

International Accounting Leader, National Professional Services Group, PwC US

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