COVID-19: Fair value questions, answered

If you’re unsure about how COVID-19 might impact your financial reporting, you're not alone. In response to the COVID-19 crisis, this podcast is the first in a series that will address questions received surrounding the impacts to financial statements. Heather Horn is joined by Chris Merchant and Tom Barbieri, PwC partners, to focus on fair value considerations.Topics include:0:40 - Market overview. We begin by discussing how COVID-19 is affecting world markets and the profound challenges that businesses are facing.3:32 - Valuation considerations. Fair value is one area of GAAP that has not significantly changed in recent years. Here we discuss the fundamental principles for how companies should think about fair value including the valuation premise and the fair value hierarchy. 9:42 - Determining the fair value during market volatility. COVID-19 disruptions are causing a lot of uncertainty. Tom and Chris explain what companies need to know regarding certain  judgements and assumptions. 15:30 - Levelling. Given that companies may be using different inputs in their valuations, Chris discusses what companies should consider as they prepare their levelling tables.21:06 - Oversight. We close the episode by addressing questions received regarding governance over valuation.About our guestsTom Barbieri is a PwC partner and the Financial Instruments Accounting Leader in PwC’s National Office with over 29 years of experience advising clients on complex accounting financial reporting issues relating to financial instruments. During Tom’s tenure in National, he has been at the forefront of emerging accounting issues and has regular interactions with the Financial Accounting Standards Board, SEC, and other nationally renowned accounting experts. Chris Merchant is a partner in PwC’s Financial Markets Practice, leading the Financial Analytics Team. With nearly 20 years of experience serving a diverse range of institutions, Chris advises clients on strategy, operations, and disruption, with a particular focus on harnessing emerging technologies to improve customer experience, draw insights, and leverage data to create institutional value.  About our 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].