PwC's accounting weekly news: April 2, 2021

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Earth Day is April 22, but why limit a good thing to one day? At PwC, we're celebrating Earth Month with a month-long focus on ESG, starting with disclosures related to climate change. Various stakeholders, including the SEC, are focused on this area, so we break down what you need to know. Read our In the loop, Don't wait until the SEC staff asks you about climate change, for details.

First quarter rundown: Accounting and reporting reminders

As the first quarter of 2021 comes to a close, listen as host Heather Horn and a panel of PwC partners highlight what companies should be thinking about for their interim reporting.

Want more quarterly resources? Read our The quarter close — First quarter 2021 or watch our Q1 2021 Quarterly accounting webcast.

Don't wait until the SEC staff asks you about climate change

According to our latest Pulse Survey, 39% of senior executives plan to consider ESG-related opportunities (e.g., investments, deals) in the next 12 months. Whether enhancing the E, S, or G, that kind of focus will likely generate press releases and other disclosures. 

In response to an ongoing trend of enhanced ESG disclosures, the SEC has increased its focus on climate-related disclosures. Read our In the loop to understand the SEC’s disclosure requirements and considerations related to the impact of climate change.

FASB issues private company goodwill impairment alternative

On March 30, the FASB issued guidance introducing an accounting alternative allowing private companies and not-for-profit entities to forgo the evaluation of goodwill impairment triggering events occurring throughout a reporting period. The alternative, if adopted, allows these entities to evaluate goodwill impairment triggering events only as of the end of the reporting period and, if necessary, to recognize and measure any resulting goodwill impairment as of that date. The alternative does not change the impairment guidance for other assets, such as long-lived assets and indefinite lived intangibles.

The guidance is effective prospectively for fiscal years beginning after December 15, 2019. Early adoption is allowed for any financial statements that have not been issued or made available for issuance as of March 30. For further insights on applying the new guidance, including considerations for private companies prior to adoption, read our In brief and listen to our podcast.

Trending content in March

Among our most popular content in March are:

PwC IFRS Technical Update - March 2021

Watch the video replay of our March 2021 IFRS Technical Update webcast. Our global specialists address Phase 2 amendments of IBOR reform, the interaction between leases and non financial assets, supplier finance arrangements, and special purpose acquisition entities (SPACs). 

Register: Five risks for your board’s agenda - what directors need to know - April 20

Companies and boards are confronted with risks at an unprecedented rate. How companies navigate them can determine their future success, and board members have a critical role to play. Join PwC leaders to learn about five risks that companies and boards need to have on their radar—and what directors need to know about addressing them.

Pharmaceutical and Life Sciences Quarterly: Q1 2021

In this edition of Pharmaceutical and Life Sciences Quarterly (formerly Rx Marketplace), we discuss industry-specific insights into the top issues of 2021, SEC comment letter trends, first quarter adoption of FASB guidance, tax policy changes, ESG, and more.


Here’s what we’re following

SEC staff statements on SPAC accounting

In separate public statements on March 31, the SEC’s Acting Chief Accountant and the staff of the Division of Corporation Finance expressed their views on several issues that private companies should consider in advance of a business combination with a special purpose acquisition company (SPAC). Topics included considerations relating to accounting, auditing, financial reporting, internal controls, timing, initial listing standards, and governance.

For details on specific accounting implications, read our In depth, Domestic SPAC mergers - financial reporting and accounting considerations.

Reminders and key dates

April 20      Five risks for your board’s agenda - what directors need to know (CPE eligible). Register here
April 21 Lease accounting - Springing forward (CPE eligible). Register here

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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