PwC's accounting weekly news: October 30, 2020

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Despite what you may expect tomorrow, we only have treats for you today. Our In the loop helps you make sense of ESG. And our popular interactive SEC comment letter trends tool has been updated through 9/30. The FASB was dishing out treats, too, this week: two new ASUs and two new exposure drafts. See the “Here’s what we’re following” section. 

And don’t forget to register for our Quarterly accounting webcast.

Making sense of ESG

Today’s C-suite imperative calls for heightened focus on companies’ ESG matters through transparency and a purpose-driven ESG strategy. Read our latest In the loop to learn more.

Q3 comment letter trends

Our SEC comment letter trends series has been updated through September 30 with recent quarterly trends, including initial observations on SEC comments related to COVID-19 disclosures. See what the SEC staff may be looking for in your filings.

Foreign currency risk: Back to the basics

There’s a lot of uncertainty these days that can cause volatility in foreign exchange rates. In this episode, PwC Managing Director John Horan joins host Heather Horn to take a look at how to manage foreign currency risk and apply the basics of foreign currency hedge accounting.

Stock-based compensation guide

We’ve updated our Stock-based compensation guide to include new examples and insights. Download our updated guide.

What’s next in tech for finance? Data-driven decision making

In this episode, host Heather Horn sits down with Michael Shehab and Michael Baccala, leaders in PwC’s Innovation Lab, to discuss the significant role that data analytics skills and technologies have on taking businesses to the next level in the decision-making process.

Register for PwC’s Q4 2020 year-end Quarterly accounting webcast — 12/9, 12/14, or 12/15 

Join our year-end quarterly accounting webcast to hear key reminders on accounting topics as you close your books. We'll also have updates on the economy post-election, the AICPA/SEC conference, and more.

We are offering three sessions for this webcast: December 9, 14, or 15. Earn up to 1.5 CPE credits. Register for the session that works best for you.

PCAOB issues interim analysis on impact of CAM requirements

A new PCAOB report provides its perspectives on the initial impact of the disclosure of critical audit matters on key stakeholders.

PwC comments on franchisor revenue recognition proposal

Read PwC’s comments on the FASB’s proposed guidance that would allow private company franchisors to simplify the accounting for pre-opening activities.

Here’s what we’re following

FASB issues codification improvements

On October 29, the FASB issued ASU 2020-10, which is intended to conform, clarify, simplify, and/or provide technical corrections to a wide variety of codification topics, including moving certain presentation and disclosure guidance to the appropriate codification section. The guidance is effective for public business entities in 2021 and all other entities in 2022.

FASB aligns codification guidance with new SEC requirements

On October 22, the FASB issued ASU 2020-09 to align the SEC paragraphs in the codification with the new SEC rules issued in March 2020 relating to changes to the disclosure requirements for certain debt securities. Certain glossary terms were superseded and amendments were made to debt and other topics as a result of this update. Read our March 2020 In depth for further details of the original SEC release.

FASB proposes clarifications to scope of recent reference rate reform guidance

On October 29, the FASB issued an exposure draft of a proposal that would amend the scope of the recent reference rate reform guidance to allow derivative instruments impacted by changes in the interest rate used for margining, discounting, or contract price alignment to qualify for certain optional relief. Comments on the proposal are due by November 13, 2020.

FASB proposes clarifications to accounting for modifications or exchanges of freestanding equity-classified forwards and options

On October 26, the FASB issued an exposure draft of a proposal that would clarify an issuer’s accounting for certain modifications or exchanges of freestanding equity-classified forwards and options (including warrants) that remain equity classified after modification or exchange. Comments on the proposal are due by December 28, 2020. 

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