PwC's accounting weekly news: January 8, 2021

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Welcome to 2021. For many in our profession, these early days of January are mostly focused on 2020. This week we’re providing a summary of previously-released resources you may find helpful. We also have a new podcast on the accounting implications of COVID-19. A team of our partners skips through an alphabet of topics from CECL to SEC. It’s an engaging listen, but if you’re short on time, use our detailed timestamps to jump to exactly the topic you need.

Stay tuned for next week when we launch the third season of our What’s next? podcast series, dedicated to the promise of 2021.

COVID-19: Your accounting and reporting resource

As we approach year-end reporting, the pandemic is top of mind for most preparers. Listen as Heather Horn and a team of PwC National Office partners come together to help listeners understand key year-end accounting and reporting considerations related to the impacts of COVID-19.

Need some other resources to help prepare for year-end reporting? Here are some of our most popular resources and pages that we think you’ll find useful this time of the year.

Accounting guide updates:

  • Derivatives and hedging: Questions on the interaction between reference rate reform and the hedging guidance? Our Derivatives and hedging guide has been updated to highlight the key hedge accounting topics impacted by reference rate reform.

  • Financial statement presentation: We’ve updated portions of our Financial statement presentation guide for recent codification improvements related to hedge accounting and new insights on the classification of cash flows.

Reminder: Year-end accounting and reporting webcast for IFRS reporters – 1/13

Register for our year-end accounting and reporting webcast for IFRS reporters. Participants will be eligible for 1 CPE credit in the field of accounting for attending this 60-minute session.

Q4 2020 quarterly accounting webcast replay

Did you miss our year-end accounting webcast? Our CPE-eligible replay is now available. We covered what you need to know to close your 2020 books and prepare for 2021, including a look at the economy and policy post-election and the annual AICPA/SEC Conference.

Consumer markets insights – January 2021

Read our Q4 summary for the consumer markets sector. It provides an overview of emerging economic, accounting, reporting, and regulatory matters relevant to the sector. 

Here’s what we’re following

FASB clarifies scope of recent reference rate reform guidance

On January 7, the FASB issued ASU 2021-01, which, among other changes, amends the scope of the recent reference rate reform guidance (ASC 848). New optional expedients allow derivative instruments impacted by changes in the interest rate used for margining, discounting, or contract price alignment (i.e., discount transition) to qualify for certain optional relief. The new optional expedients for contract modifications and hedge accounting are expected to benefit companies, including those with certain centrally cleared derivatives affected by a discount rate transition in 2020. The guidance is effective immediately and can be applied retrospectively to any interim period beginning January 1, 2020 or prospectively to any new modifications in any period including or subsequent to the issuance date. 

Some of the relief provided by the new ASU, as well as ASC 848 more broadly, may be beneficial to companies for their 2020 financial reporting. Companies must make an election to apply the optional expedients, update their hedge accounting documentation, as applicable, and disclose the nature and reason for adopting the relief. Stay tuned for updates to our Reference rate reform guide to reflect the new guidance.

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