PwC's accounting weekly news: April 16, 2021

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While we usually like to highlight our own content, and we do have three podcasts released this week, make sure you scroll down to “Here's what we’re following.” It was a busy week. There are two updates from the FASB, two releases from the SEC, and a new GASB project. 

Accounting for goodwill: details on the FASB and IASB projects

The FASB and the IASB each have projects on the subsequent accounting for goodwill; the implications may be bigger than whether one or both boards adopt an amortization model. In this episode, Host Heather Horn sat down with Andreas Ohl, PwC National Office partner, and Ruth Preedy, PwC director and IFRS accounting specialist, to discuss the status of both projects, where they converge and diverge, and how the projects might develop.

Want to learn more? Read our Point of view, The unbalanced balance sheet: Making intangibles count.

There’s going to be some fear of missing out. If you aren’t the one to invest in India and to take advantage, your competitor might be.

- Craig Stronberg

Tune in to this week’s episode, Forecast 2021: Investing in India’s growth, as Craig Stronberg, who leads PwC’s Intelligence team advising global and firm leadership on macroeconomic and geopolitical events, is back in the guest seat with host Heather Horn. This week, he shares insights on how companies are doing business in India, unpacking the challenges, opportunities, and what the future might hold.

Earth Day - By the numbers

Reminder: Register for our April 21 webcast: Lease accounting - Springing forward

It’s not too late to register for our lease accounting webcast for an in-depth discussion on lease accounting issues in the current environment, where many are rethinking their real estate footprint. Participants will be eligible for 1 CPE credit.

IFRS talks podcast—Rate regulated accounting

The table is turned as Heather Horn joins Scott Bandura and host Andrea Pryde on the latest IFRS Talks podcast to discuss the IFRS exposure draft on regulatory assets and liabilities. Listen to find out what additional information is being proposed for companies subject to rate regulation.

Want to learn more about IFRS? Read our IFRS and US GAAP: similarities and differences guide.

Here’s what we’re following

Balance sheet classification of debt project removed from FASB’s agenda

On April 14, the FASB met to discuss comments received on its proposal to simplify the balance sheet classification of debt. Based on feedback received, the Board removed the project from its agenda. However, the Board will consider soliciting input on the need for improvements to the overall classification model of both assets and liabilities as part of its agenda consultation research project.

FASB discusses possible amendments to leases standard

Also on April 14, the FASB discussed the issue of sales-type leases with variable lease payments that was included in its October 2020 exposure draft, Leases (Topic 842): Targeted improvements. The Board agreed that sales-type leases that have variable payments and result in a day-one loss should be classified as operating leases, and directed the staff to draft a final ASU for vote.

The Board also added a project to its technical agenda that would allow lessees that are not public business entities to elect the risk-free discount rate by class of underlying asset.

SEC staff releases statement regarding the accounting for warrants issued by SPACs

Paul Munter, the SEC’s Acting Chief Accountant, and John Coates, Acting Director of the Division of Corporate Finance, jointly released a statement on April 12 regarding “Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies.”

SEC staff releases ESG Risk Alert

On April 9, in light of the increasing demand for ESG investment products, the SEC’s Division of Examinations published a Risk Alert describing the areas of focus for examinations of registered investment advisers’ and funds’ ESG investment offerings. A concurrent public statement by SEC Commissioner Hester M. Peirce provides additional context for the Risk Alert.

GASB seeks feedback on proposal to rename the comprehensive annual financial report

On April 13, the GASB issued an exposure draft of a proposal that would change the name of the “comprehensive annual financial report” to the “annual comprehensive financial report.” Comments are due by July 9.

Recent releases

Reminders and key dates

April 20         PwC webcast: Five risks for your board’s agenda - what directors need to know (CPE eligible). Register here
April 21 PwC webcast: Lease accounting - Springing forward (CPE eligible). Register here
May 19 PwC webcast: Rebuilding revenue - Accounting and reporting trends in revenue (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