Pwc's Cfodirect Podcast

The European Union (EU) has ushered in a new era of sustainability reporting, as the Corporate Sustainability Reporting Directive (CSRD) became effective in January 2023 and the European Sustainability Reporting Standards (ESRS) are now final. With impacts to both EU and non-EU headquartered companies, now is the time to understand the applicability and scope of these reporting requirements.To launch our podcast miniseries on the CSRD, host Heather Horn is joined by Emily Kirsch, director in PwC’s sustainability practice, and Soné Beyers, director in PwC’s National Office, to provide a refresher course on the basic requirements and applicability of the EU’s sweeping sustainability reporting directive.In this episode, you’ll hear discussion of:4:04 - Background and latest developments on the CSRD12:54 - The final set of 12 ESRS, which will be effective starting in 2024 15:36 - What companies are within the scope of the CSRD and required to follow ESRS21:32 - Key dates for CSRD effectiveness, scoping threshold

Assessing whether a company is in scope of the European Union (EU) Corporate Sustainability Reporting Directive (CSRD) has some inherent complexities. The scope of companies directly impacted is expansive — including US and other non-EU headquartered companies — making scoping a question that merits priority focus by companies with operations in the EU.A company may have options in its approach to fulfilling its CSRD reporting requirements, and there are practical considerations that may inform a company’s determination of the most effective reporting approach for its organization under the CSRD. In this episode, Heather Horn brings you an audio version of our In the loop publication discussing these scoping and reporting approaches under the CSRD. In this podcast, you’ll hear:1:15 - Background and introduction4:52 - Four steps to decide on how to report9:20 - What is the scope of reporting obligations, and are there any exemptions?13:35 - What information needs to be gathered?26:32 - What is the timing of re

Integrating sustainability in business strategy may increase the attractiveness of business to lenders, investors, and customers. However, with the multitude of sustainability reporting frameworks for multinational companies, it can be difficult to determine the best way to tell a unified story to all stakeholders that is consistent with the company’s overall sustainability strategy.In this episode, host Heather Horn welcomes Esther An, Chief Sustainability Officer of Singapore-based real estate firm City Developments Limited, to discuss how companies can manage multiple disclosure frameworks while utilizing sustainability reporting as a catalyst for business innovation, investment, and impact. In this episode, you’ll hear discussion of:5:02 - Esther’s professional background and sustainability leadership in Singapore12:06 - How COVID-19 accelerated awareness of sustainability17:35 - Creating business value through sustainability and achieving the “triple bottom line” of profit, people, and planet20:58 - Four

As effective dates for sustainability reporting requirements inch closer, companies face pressure to stand up reporting workstreams before it is too late. With multiple frameworks coming into play in the near term, managing the data gathering, aggregation, and reporting of numerous metrics is a manual exercise for many companies. But is there technology that can help?In today’s episode, host Heather Horn is joined by Sammy Lakshmanan, principal in PwC’s Sustainability Consulting Solutions practice, to discuss the ways that leading companies are integrating technology into their sustainability reporting work plans. Sammy provides insights on how companies can leverage the power of technology to generate value that goes beyond compliance. In this episode, you’ll hear discussion of:4:02 - Expected impacts of the shift from voluntary to mandatory ESG reporting7:47 - The current landscape of sustainability reporting technology solutions 10:29 - A roadmap for digital transformation, including the sequencing of even

New York City Climate Week brings together international business leaders, policymakers, and other civic leaders to help drive progress and speed transition on climate-related issues. This year’s event highlighted the sustainability advancements made over the past year – with a look ahead to the actions companies need to take next to prepare for net zero.This week, host Heather Horn is joined by Will Jackson-Moore, PwC’s Global Sustainability Leader, to discuss some of the bigger themes that emerged from the week, from energy transition and demand reduction to the impact of emerging sustainability reporting regimes around the world.In this episode, you’ll hear discussion of:3:04 - An overview of the current sustainability landscape and the challenges that companies face with decarbonization8:00 - The relative priority companies are assigning to climate actions and progress10:32 - How organizations are executing strategic planning and reporting on climate15:44 - The time runway for companies to transform their

As companies move forward with clean energy investments and decarbonization projects, many face questions about which of these projects qualify for tax incentives under the Inflation Reduction Act (IRA), and how best to utilize the act’s credits and other green initiatives. In today’s episode, Heather Horn welcomes back Matt Haskins, PwC principal, to discuss the latest IRS guidance for IRA initiatives, marketplace transactions, and further considerations for companies looking to take advantage of the IRA. In this episode, you’ll hear discussion of:5:06 - Advanced energy project credits under IRS Section 48C, and the status of the current allocation of the $10 billion budgeted pool9:09 - Transferability and timing considerations of tax credits 12:07 - Choosing between investment tax credits and production tax credits14:55 - Risk of recapture of paid tax credits and relevant mitigating strategies23:53 - How a government shutdown would impact IRA initiatives27:59 - Market developments in the hydrogen production

Last year brought proposed ESG disclosures from the European Union (EU) as part of the Corporate Sustainability Reporting Directive (CSRD), internationally by the International Sustainability Standards Board (ISSB), and in the US by the SEC.The sustainability disclosures required by the ISSB and in the EU were finalized in June and July 2023, respectively. And while the final SEC rule is still pending, two bills signed into law by the California Governor in October 2023 are poised to change the landscape of climate reporting in the US.These “big three” proposals would each require expansive sustainability disclosures — although their proposed scopes and other details vary. In this episode, Heather Horn brings you an audio version of our In the loop comparing the three proposals. In this podcast, you’ll hear:1:50 - Background on the “big three” proposals19:26 - Overview of California climate disclosure rules23:27 - Comparison of the general features of the proposals28:15 - Differences in concepts of materialit

Continuing our October all-star series, Tom Barbieri, PwC US Chief Accountant, shares insights on critical accounting and reporting topics.Tom is joined by Nick Milone, a PwC practice partner with experience advising clients on hedging strategies, to discuss effective hedging strategies for various types of macroeconomic and business risks.In this episode, you’ll hear:2:47 - An overview of the theory and purpose of hedge accounting6:04 - Initial considerations for applying hedge accounting, including an overview of the effectiveness assessment10:07 - A breakdown of the three most common hedge strategies and why companies might use them10:21 - Cash flow hedges12:23 - Fair value hedges14:33 - Net investment hedges17:49 - Common examples of and questions related to hedging strategies 22:02 - Common pitfalls in applying hedge accounting27:57 - An overview of other hedging strategies, their purpose and how to use them28:04 - Forecasted debt issuance hedges35:29 - Foreign currency hedges39:04 - Hedging strategies f

The Taskforce on Nature-related Financial Disclosures (TNFD) released its final disclosure recommendations for nature-related dependencies, impacts, risks and opportunities on September 18. Given the interrelationship between climate and nature — and the dependence of business on nature — companies may want to consider this new framework as a tool in communicating their full sustainability story.This week, Heather Horn is joined by Daniel O’Brien, PwC Canada’s Sustainable Business Solutions leader and TNFD member, to discuss what companies should do now to prepare to make effective nature-related disclosures.In this episode, you’ll hear discussion of:4:18 - Background on the TNFD, including how the taskforce was formed and its mission8:11 - The key principles of the TNFD framework and interoperability of the TCFD framework with existing climate reporting frameworks13:36 - Complexities in critical areas of the TNFD framework 20:08 - Recommendations for how companies should approach TNFD disclosures29:29 - How

From inflation to labor markets to monetary policy, the economy has faced some unexpected headwinds in 2023. This week, host Heather Horn is joined by Chris Benko, PwC Intelligence chief economist, for an economic update to help companies prepare for the end of the year.In this episode, you’ll hear:2:53 - An overview of the current state of the economy, including the balance between inflation and recession12:58 - A discussion of market factors, including the impacts of federal monetary policy and unemployment, as well as the definition of a “soft landing”25:48 - Instability indicators companies should consider, including:28:10 - Domestic politics29:38 - The global economy32:01 - Geopolitics33:36 - Insights on markets for companies looking to stay ahead of the curve as they head into the final quarter of the calendar yearWant to hear more about the geopolitical and macroeconomic factors impacting the global economy? Tune into the prior podcast in this mini series.Chris Benko is PwC Intelligence chief economist

In this episode, we discuss the SEC’s new cybersecurity disclosure rules finalized in July. The new disclosure rules expand registrants’ annual disclosures and require timely reporting for material cybersecurity incidents. With these significant changes and the implementation approaching, companies should not wait to get ready. This week, Heather Horn is joined by Kyle Moffatt, PwC National Office Professional Practice Leader, and Matt Gorham, PwC Cyber & Privacy Innovation Institute Leader, to discuss what companies can do to prepare now for the new requirements.In this episode, you’ll hear discussion of:4:28 - Why cybersecurity is an area of focus for the SEC 8:03 - A summary of the SEC’s new cybersecurity rules and disclosure requirements10:21 - Types of cyber incidents, including what’s required to be disclosed in the Form 8-K and how companies should think about “material” impacts12:58 - The importance of developing relationships with federal law enforcement and how smaller companies can start to bui

Tom Barbieri, PwC’s Chief Accountant, is accelerating the first episode in our October all-star series to share insights on critical accounting and reporting topics.To kick off the series, Tom is joined by Gary Sardo, Financial Accounting Standards Board (FASB) practice fellow, to discuss FASB’s disaggregation of income statement expenses (DISE) project.In this episode, you’ll hear:3:51 - An overview of investor feedback and background on the FASB’s decision to propose enhancing the disclosure requirements for income statement expenses7:54 - Companies impacted by the proposed standards10:32 - A breakdown of the proposed disclosure requirements, including:13:42 - Defining “relevant expense captions,” distinguishing features of each caption and the associated proposed requirements16:22 - Materiality considerations17:30 - Investor and preparer feedback on the proposed standard, including practical challenges in the inventory expense breakdown21:26 - Details on the proposal to further break down inventory and man

In the third quarter 2023 edition of The quarter close, we highlight the SEC’s final rule on cybersecurity, which will require new reporting and disclosures for many companies beginning next quarter. We also provide key reminders when accounting for debt restructurings, updates on sustainability reporting, and the latest FASB standard-setting developments. Read or listen to The quarter close for these and other relevant accounting and reporting topics you should consider as you close out the third quarter of 2023.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

Every Tuesday in September, Craig Stronberg, PwC’s Macro Intelligence Leader, is taking over the podcast to share insights on how geopolitical and macroeconomic trends, forces, and movements are likely to impact your business.To continue the series, Craig is joined by Zain Siddiqui, PwC senior economist, to discuss the current state of the global supply chain and how companies should evaluate their supply chain strategies.In this episode, you’ll hear a discussion of:2:07 - The current state of the global supply chain5:55 - How companies should think about their supply chain business strategies in light of external factors and risks11:21 - The impact of government policy on economic policy and the incentives for domestic production21:02 - Sector- and geographic-specific insights on supply chain challenges and opportunities, including:28:55 - The impact of geographical diversification on supply-chain resiliency30:55 - Expectations for long-term trends in the global supply chain33:54 - Final advice for companies

In today’s episode, sustainability and financial reporting intersect. We discuss accounting for green incentives that arise from the Inflation Reduction Act (IRA). The IRA, signed into law in August 2022, provides climate and clean energy tax credits. With many types of credits available in the IRA, companies have raised questions about the financial accounting implications of the credits given the unique features that these credits have compared to past federal incentives. This week, Heather Horn is joined by Pat Durbin, a Deputy Chief Accountant in PwC’s National Office, and Jillian Pearce, a partner in our utilities practice, both of whom have closely followed accounting for the credits, to discuss what to look out for in accounting for IRA tax credits.In this episode, you’ll hear discussion of:2:38 - The background, including the breadth, scope, and structure of available IRA credits7:45 - The different pathways to realization of tax credits11:45 - How companies should allocate consideration paid for IRA

Every Tuesday in September, Craig Stronberg, PwC’s Macro Intelligence Leader, is taking over the podcast to share insights on how geopolitical and macroeconomic trends, forces, and movements are likely to impact your business.To continue the series, Craig is joined by Zain Siddiqui, PwC Intelligence senior economist, to discuss India’s economy and the risks and opportunities it presents for companies worldwide.In this episode, you’ll hear a discussion of:4:50 - India’s evolving role as a key player in the global economy10:54 - The driving factors, including population growth and its impact on the labor market, contributing to India’s positioning as a global force 16:54 - Considerations that are key to understanding India’s economy, its influence and challenges, including:18:15 - Human capital - education, job creation, and equal opportunities in India27:50 - India’s economic tendencies as a domestic-driven, consumption heavy, services economy32:12 - India’s business sentiment and power to influence the global

Every Tuesday in September, Craig Stronberg, PwC’s Macro Intelligence Leader, is taking over the podcast to share insights on how geopolitical and macroeconomic trends, forces, and movements are likely to impact your business.To kick off the series, Craig provides an overview of the global macroeconomic and geopolitical forces — the true “tectonic” forces — impacting companies in the near and longer term.In this episode, you’ll hear a discussion of:3:52 - Disequilibrium - what it means, where it stands, and what comes next8:29 - Identifying and understanding the forces impacting the global economy 15:02 - Why it’s important for companies to understand their business assumptions and how those assumptions may be changing20:49 - Assessing major global forces and their impacts on our economy, including:20:55 - Geopolitical disruption, protectionism, and the impact on free trade28:39 - Polarization and its impact on risk management and business decisions38:06 - Balancing between trust and distrust in governments a

Every Tuesday in August, Bret Dooley, Deputy Chief Accountant in PwC’s National office, is taking over the podcast to share insights on financial instruments hot topics. In each 25-minute episode, Bret will discuss 5 things you need to know.In this episode, Bret is joined by John Horan, a managing director in PwC’s National office with a focus on financial instruments, to break down what we need to know on earnings per share (EPS).In this episode, you’ll hear:2:20 - Reminders on the basic EPS calculation, including considerations for participating securities and application of the the two-class method11:45 - The impact of mezzanine equity on the basic EPS calculation15:12 - The impact of new FASB guidance (ASU 2020-06) on EPS calculations for contracts that can be settled in cash or shares 20:01 - Complexities in the dilution calculation for liability-classified warrants and convertible debt with bifurcated conversion options21:48 - Why companies should evaluate repurchased convertible instruments separatelyF

Every Tuesday in August, Bret Dooley, Deputy Chief Accountant in PwC’s National office, is taking over the podcast to share insights on financial instruments hot topics. In each 25-minute episode, Bret will discuss 5 things you need to know.In this episode, Bret is joined by Chip Currie, another partner in PwC’s National office with a focus on financial instruments, to discuss convertible instruments and the impacts of updated accounting guidance in this area.In this episode, you’ll hear discussion of:1:38 - Why companies use convertible instruments and the complex financial decisions accompanying their use6:38 - The impact of new accounting guidance for convertible instruments in ASU 2020-06 9:49 - Key information when accounting for induced conversions12:10 - Down round provisions in equity-linked instruments19:27 - Judgments involved in determining whether to separate the conversion option and account for it as an embedded derivative For more information, read chapter 6 of our Financing transactions guide

The transformation of ESG reporting accelerated in 2022 with the release of major proposals in the European Union (EU) and the United States (US), as well as globally by the International Sustainability Standards Board (ISSB).Although all of these proposals have the potential to impact multinational companies, the Corporate Sustainability Reporting Directive (CSRD) from the EU that applies to many multinational companies perhaps requires the most immediate attention. In this episode, Heather Horn brings you an audio version of our In the loop covering the CSRD. In this podcast, you’ll hear:3:12 - Past, present, and future of EU sustainability reporting8:48 - Scope and timing29:45 - Reporting under the CSRD50:43 - Requirement for third-party assurance51:24 - Filing requirements of the CSRD59:54 - What’s next?Refer also to the print version, Worldwide impact of CSRD - are you ready? Also, join our upcoming Q4 2023 Quarterly sustainability webcast.Heather Horn is PwC’s National office thought leader, responsible