Coronavirus: Accounting considerations for your business (updated April 2, 2020)

Coronavirus (COVID-19) is a global issue that continues to dominate the headlines. In addition to its immeasurable human toll, it is also altering business and consumer activity, which may impact your financial statements. That is why Heather Horn and a team of PwC National Office partners came together to help listeners understand the potential accounting implications. Topics include:0:45 - Revenue recognition. We begin by providing perspective on the potential consequences of the disruption to revenue. 7:23 - Asset impairment. Many companies carry goodwill and intangibles on their balance sheet. Matt explains how companies should think about the potential impacts and shares reminders for evaluating whether the virus has caused an impairment.12:27 - Hedging and debt. Next we turn our attention to how the recent events may affect companies in the areas of hedging and debt. 16:33 - Restructuring, stock comp, insurance and inventory. Heather and the panel discuss other areas that may not be quite as pervasive but ones that companies should still be thinking about in response to the virus.  23:08 - Disclosure (Updated April 2, 2020). We close the episode by talking about disclosures at two levels: first, by looking at US GAAP requirements and then by spending some time on SEC disclosures.  About the guestsMatt Sabatini is a partner in PwC's National Office with nearly 20 years of experience helping clients and engagement teams navigate the accounting and financial reporting for complex transactions. He specializes in the accounting for M&A, corporate reorganizations, recapitalizations, joint ventures, and other investments. Jay Seliber is a partner in PwC’s National Accounting Services group with over 30 years of experience. He helps clients with their most complex accounting matters, particularly in the areas of revenue recognition, M&A, stock compensation, employee benefits, restructurings, impairments, and financing transactions.     Ryan Spencer is a partner in PwC's National Office specializing in SEC financial reporting matters. He has over 20 years of experience serving clients in the technology and life sciences industries and is a frequent contributor to PwC’s publications and communications.Brian Staniszewski is a partner in PwC’s National Office. Brian helps engagement teams and clients principally in the financial services industry navigate a broad range of   technical topics, including hedging, derivatives, and credit losses.About the hostHeather Horn is PwC’s National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With over 25 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting. Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected].