PwC's accounting weekly news: May 22, 2020

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A Memorial Day unlike any we’ve known before, but maybe a timely reminder of the importance of appreciating those who sacrifice in service to others. 

Before you start enjoying this unofficial start of summer, see our two-part podcast on equity method accounting and some welcome relief for certain entities regarding the effective dates for the revenue and leases standards.

Why auditing in the time of COVID-19 requires a delicate balance of human and machine

PwC's Wes Bricker, Vice Chair—US and Mexico Assurance Leader, explains why the collaboration of people and technology is more important than ever, especially for the audit.

FASB to defer revenue and leases standards for private companies

Read our summary of the FASB’s decision to defer the revenue and leases standards for certain private companies and not-for-profit entities.

Register: PwC’s Q2 2020 Quarterly accounting webcast (6/17, 6/23, and 6/29)

Join our Quarterly accounting webcast to stay up to date on the accounting, regulatory, and market developments you need to know to succeed in the current environment. We are offering three sessions for this webcast. Since the content for these sessions will be the same, participants are only eligible to receive CPE for attending one session. Sign up today.

Updated: CARES Act: Accounting for the stimulus

Our In depth was most recently updated on May 20 with a new Q&A on how a borrower of funds under the Paycheck Protection Program should account for the arrangement and an update on the disclosure of grants received through the CARES Act.

Applying the equity method, Parts I and II

In a special two-part episode, Heather Horn is joined by PwC partner Matt Sabatini to discuss the accounting for equity method investments. Part I of the series lays the groundwork for understanding the scope of the guidance and the determination of significant influence. Part II builds on the fundamentals to cover common misconceptions and helpful hints in the application of the guidance.

Accounting for restructuring activities

In today's environment, companies may be reevaluating their business models and cost structures. Some may be moving beyond temporary furloughs and considering layoffs and other restructuring activities. There are multiple accounting models that could apply to actions companies take as part of a restructuring. Find help in our podcast, Corporate turnarounds and impairments page, and accounting guides:

PwC IFRS Technical Update - May 2020

Watch the video replay of our May 2020 IFRS Technical Update webcast covering COVID-19-related issues, including accounting for leases, depreciation of assets, and valuations.

Ability to continue as a going concern amid COVID-19

In the face of current market disruptions, we describe actions management can consider to address liquidity and mitigate the risk of substantial doubt about continuing as a going concern.

PwC responds to the AICPA’s CPA Exam Exposure Draft

Read PwC’s comments on the changes the AICPA has proposed to the CPA Exam to better focus its content on the critical knowledge and skills required of newly licensed CPAs in today’s environment.

Here’s what we’re following

SEC adopts amendments to improve financial disclosures about acquisitions and dispositions of businesses

On May 21, the SEC issued amendments to its rules to improve the financial information about acquired or disposed businesses provided to investors, facilitate more timely access to capital, and reduce the complexity and costs to prepare disclosure. There are numerous amendments that will be discussed in an upcoming PwC In depth, including:

  • The financial statements of acquired businesses only need to cover up to the two most recent fiscal years (three were required in some cases previously)
  • The pro forma financial information requirements are amended to allow, in some cases, optional “Management’s Adjustments” to depict synergies and dis-synergies of the acquisition or disposition.
  • A revenue component was added to the income test when measuring significance and the investment test was revised to use the registrant’s aggregate worldwide market value, if available.

The amendments are effective January 1, 2021, but early compliance is permitted.

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