PwC's accounting weekly news: September 25, 2020

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Our first newsletter of the fall and it’s a very busy week. We have guide updates, podcasts, our Audit Quality Report, and information about the SEC’s new Regulation S-K disclosure rules and the FASB’s recent and planned proposals. And as hard as it is to believe, October starts next week. So don’t miss our accounting and tax webcasts as you prepare for third quarter reporting.

Impairments: What lessons learned from Q2 may mean for Q3

As companies look ahead to their Q3 reporting, what lessons can be learned from companies that took impairments in Q2? Heather Horn is joined by PwC partners to share observations on impairments triggered in the second quarter.

Navigating the SEC’s amended Regulation S-K disclosure rules

Read our summary of the SEC’s amended disclosure requirements relating to the description of business, legal proceedings, and risk factors. For additional detail on the disclosures related to human capital, see our Insights from our Organization & Workforce Transformation team.

Accounting guide updates:

  • Revenue from contracts with customers: We’ve updated our comprehensive guide to include new examples and insights.
  • Financial statement presentation: We’ve updated our guide for targeted changes and new insights related to the presentation and disclosure of revenue from contracts from customers, contract costs, business combinations, and government grants.

What’s next? Use disruption to rework the finance operating model

In this week’s episode, we summarize how finance operating models are being impacted by process simplification and standardization, technology, workforce changes, and more.

PwC's focus on audit quality

PwC is adapting and continuing to make enhancements to drive the quality of our audits. Our 2020 Audit Quality Report provides an opportunity to share how our culture, values, people, and processes come together to help us achieve our audit quality objectives. Read more.

Big 4 develops new ESG framework

On September 22, the World Economic Forum released a new environmental, social, and governance (ESG) disclosure framework driven by the efforts of the Big 4 accounting firms. The framework includes a universal set of metrics and recommended disclosures intended to lead to a more comprehensive global corporate reporting system. The framework divides disclosures into four pillars—principles of governance, planet, people, and prosperity—that serve as the foundation to ESG reporting standards. Read PwC Global Chairman Bob Moritz’ perspective on the release.

Reminder: PwC Q3 2020 webcasts

Quarterly accounting webcast — 9/29

There’s still one more opportunity to participate. Register for the 9/29, 11:00am ET CPE-eligible webcast for an update on the accounting, regulatory, and market developments you need to know to succeed in the current environment.

Tax readiness: Q3 financial reporting considerations — 9/30

Join our Tax Accounting Services specialists on 9/30 at 2:00pm ET for a deep dive into relevant tax accounting matters and recent tax developments. 

Topics for your next audit committee agenda

Recent thought leadership from the Governance Insights Center focuses on helping audit committees during the quarter close and includes special considerations in light of COVID-19. Check out the Q3 2020 agenda topics that may arise at the next meeting.

Consumer markets insights - September 2020

Read our Q3 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 proposes new practical expedient for private company franchisors

On September 21, the FASB issued an exposure draft of a proposal that would allow private company franchisors an optional expedient to simplify the accounting for certain pre-opening activities in a franchise agreement under the revenue standard. Comments on the proposal are due by November 5, 2020.

FASB votes on revenue contracts acquired in a business combination

At its September 23 meeting, the FASB voted to add a project to its technical agenda to address the recognition and measurement of revenue contracts with customers acquired in a business combination. The decisions made in connection with the project include:

  • an acquirer should recognize a liability for a customer contract assumed in a business combination if it represents a performance obligation, as defined in ASC 606, rather than based on a legal obligation concept, and
  • assets and liabilities arising from revenue contracts acquired in a business combination should be recognized in accordance with ASC 606, rather than at fair value.

An exposure draft is expected to be issued in the fourth quarter with a 90-day comment period.

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