In this episode, we explain how to identify the accounting acquirer in an acquisition—an essential first step in accounting for a business combination. We also outline key changes in the FASB’s new guidance (ASU 2025-03, Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity) that impact this assessment.

In this episode, we discuss:

• 1:16 – Overview of business combinations and importance of identifying the acquirer
• 6:12 – New FASB guidance applicable when the legal acquiree is a variable interest entity (VIE)
• 10:33 – Factors to consider when determining the accounting acquirer
• 17:35 – Effective date and transition provisions for adopting the new guidance

For more information, see section 2.3 of our Business combinations guide.

You may also be interested in our related podcast episodes mentioned during this discussion:

• Accounting for business combinations: Being prepared for a deal – discusses the foundations of acquisition accounting
• The consolidation framework - Identifying a VIE – explores the evaluation of variable interests and the characteristics of a variable interest entity (VIE)

Be sure to follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to stay in the loop.

About our guests

Ryan Blacker is a director in PwC’s National Office specializing in the accounting for business combinations and crypto assets. Ryan consults with clients and engagement teams on complex accounting and financial reporting matters related to these topics.

Matt Sabatini is a partner in PwC's National Office who helps clients and engagement teams navigate the accounting and financial reporting for complex transactions. He specializes in the accounting for M&A, consolidations, corporate reorganizations, recapitalizations, joint ventures, and other investments.

About our guest host

Guest host Diana Stoltzfus is a partner in the National Office who helps to shape PwC’s perspectives on regulatory matters, responses to rulemakings and policy development, and implementation related to significant new rules and regulations. Prior to rejoining PwC, Diana was the Deputy Chief Accountant in the Office of the Chief Accountant (OCA) at the SEC where she led the activities of the OCA’s Professional Practices Group.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

A video of this podcast is available on YouTube, Spotify, or PwC’s website at viewpoint.pwc.com

Recent weeks have brought notable progress on the European Commission’s Omnibus package. In this episode, we examine the key developments from July — including amendments to the EU Taxonomy regulation, EFRAG’s extended deadline, and major revisions to the European Sustainability Reporting Standards (ESRS). We also discuss the potential implications for businesses as the legislative process advances, including why “wave 1” reporters must stay alert even if the changes aren’t finalized yet.

In this episode, we discuss:

• 1:09 – July’s major EU sustainability developments
• 4:18 – Deadline extension for EFRAG revisions
• 7:22 – The “quick fix” delegated act and wave 1 reporting relief
• 13:55 – Major revisions to ESRS
• 21:38 – Status of the broader content proposal
• 25:15 – Breaking down the EU legislative process and expected timelines

Get caught up on the EU Omnibus package:

• New reliefs for ESRS ‘wave 1’ reporters
• EFRAG’s next step toward revised ESRS
• European Commission adopts revisions related to Taxonomy Regulation
• Sustainability now: EU Omnibus in motion – June 2025 update
• Sustainability now: EU Omnibus in motion – May 2025 update
• Sustainability now: Navigating “Omnibus” uncertainty

Looking for the latest developments in sustainability reporting?

• Read PwC’s Sustainability reporting guide
• Check out other episodes in our sustainability reporting podcast series

About our guest

Diana Stoltzfus is a partner in the National Office who helps to shape PwC’s perspectives on regulatory matters, responses to rulemakings and policy development, and implementation related to significant new rules and regulations. Prior to rejoining PwC, Diana was the Deputy Chief Accountant in the Office of the Chief Accountant (OCA) at the SEC where she led the activities of the OCA’s Professional Practices Group.

About our host

Heather Horn is the PwC National Office Sustainability and Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

We continue our revenue accounting podcast miniseries with an episode focused on presentation and disclosure. From balance sheet and income statement classification to required disclosures under ASC 606, we highlight key guidance and address key areas where questions often arise in practice.

In this episode, we discuss:

• 1:27 – Income statement presentation of revenue
• 4:16 – Balance sheet presentation considerations related to revenue
• 9:38 – Overview of revenue disclosure objectives and the five primary disclosure areas:
  • 11:27 – Disaggregated revenue
  • 18:40 – Performance obligations
  • 23:26 – Significant judgments
  • 26:31 – Contract balances
  • 29:01 – Costs to obtain or fulfill a contract

For more information, chapter 33 of our Financial statement presentation guide. You can also listen to the other episodes in this series:

• Revenue accounting reset – Recognizing revenue
• Revenue accounting reset – Variable consideration
• Revenue accounting reset – Consideration payable to a customer

Be sure to follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to stay in the loop.

About our guests

Christine Moore is a director in PwC’s National Office advising audit and non-audit clients on complex accounting and financial reporting matters. She advises on revenue arrangements for public and private companies across various industries, with a focus on companies in the pharmaceutical and life sciences industry.

Mike Coleman is a partner in PwC's National Office who specializes in accounting for revenue and software arrangements and has served technology clients for much of his career. In addition, Mike has represented the firm on the AICPA Software Task Force.

About our guest host

Guest host Diana Stoltzfus is a partner in the National Office who helps to shape PwC’s perspectives on regulatory matters, responses to rulemakings and policy development, and implementation related to significant new rules and regulations. Prior to rejoining PwC, Diana was the Deputy Chief Accountant in the Office of the Chief Accountant (OCA) at the SEC where she led the activities of the OCA’s Professional Practices Group.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

We continue our revenue accounting podcast miniseries with a discussion on payments to customers—an area that can raise complex accounting questions, especially when those payments come in the form of equity. We examine when these payments reduce revenue versus when they represent consideration for a distinct good or service. We also highlight updates from the FASB’s new guidance on share-based consideration payable to a customer.

In this episode, we discuss:

• 0:56 – Overview of consideration payable to a customer
• 5:41 – When to recognize payments to a customer
• 15:15 – Applying ASC 718 to equity-based payments to a customer
• 23:41 – Key provisions in FASB’s new guidance on equity consideration
• 29:49 – Classifying, measuring, and recognizing equity payments
• 36:41 – Accounting for payments to settle litigation claims or other disputes

For more information, see chapter 4 of our Revenue guide, chapter 7 of our Stock-based compensation guide, and our In brief, FASB issues guidance on share-based consideration payable to a customer. Listen to the other episodes in this series:

• Revenue accounting reset – Recognizing revenue
• Revenue accounting reset – Variable consideration

Be sure to follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to stay in the loop.

About our guests

Ken Stoler is a partner in PwC’s National Office who specializes in financial reporting and plan design issues related to equity compensation arrangements, retirement and healthcare plans, and other benefits. He has helped companies navigate their employee compensation issues during IPOs, spinoffs, acquisitions, and other major transactions or events.

Angela Fergason is a partner and standard setting leader in PwC's National Office who specializes in accounting for revenue and employee compensation arrangements. She also consults on a range of financial reporting issues impacting technology companies.

About our host

Heather Horn is the PwC National Office Sustainability and Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

We continue our revenue accounting miniseries with an episode taking a closer look at variable consideration—an essential and sometimes complex element in determining transaction price. From performance bonuses to volume-based rebates, we explore how to estimate and constrain variable amounts as well as when key exceptions apply.

In this episode, we discuss:

• 0:58 – Why variable consideration is a critical element of the ASC 606 model
• 7:00 – The general model for estimating variable consideration
• 9:02 – Applying the constraint on the amount of variable consideration
• 18:25 – Common types of arrangements that include variable consideration, such as volume-based rebates and discounts
• 20:59 – Key exceptions to the general model:
  • 21:10 – Sales- or usage-based royalty exception
  • 26:04 – Variable consideration allocation exception
  • 30:24 – Right-to-invoice measure of progress exception

For more information, see chapter 4 of our Revenue from contracts with customers guide. You can also listen to the first episode in this series, Revenue accounting reset – Recognizing revenue.

Be sure to follow this podcast on your favorite podcast app and subscribe to our weekly newsletter for the latest thought leadership.

About our guests

Angela Fergason is a partner and standard setting leader in PwC's National Office who specializes in accounting for revenue and employee compensation arrangements. She also consults on a range of financial reporting issues impacting technology companies.

Chris Bourdon is a partner in PwC's National Office who specializes in accounting for revenue, inventory, and employee compensation arrangements. He also consults on a range of financial reporting issues impacting technology, media, and entertainment companies.

About our host

Heather Horn is the PwC National Office Sustainability and Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

We kick off our latest accounting podcast miniseries on revenue accounting with a foundational discussion on revenue recognition. In this episode, we tackle recognizing revenue —the final step of the ASC 606 model—and examine how to determine whether performance obligations are satisfied over time or at a point in time.

In this episode, we discuss:

• 0:54 – Overview of the ASC 606 revenue model
• 5:30 – Identifying performance obligations satisfied over time
• 11:15 – Identifying performance obligations satisfied at a point in time
• 21:19 – Measures of progress to determine the timing of revenue recognition
• 33:45 – Exceptions to over-time revenue recognition

For more information, see chapter 6 of our Revenue from contracts with customers guide.

Be sure to follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to stay in the loop.

About our guests

Pat Durbin is a PwC National Office Deputy Chief Accountant. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.

Mike Coleman is a partner in PwC's National Office who specializes in accounting for revenue and software arrangements and has served technology clients for much of his career. In addition, Mike has represented the firm on the AICPA Software Task Force.

About our guest host

Guest host Diana Stoltzfus is a partner in the National Office who helps to shape PwC’s perspectives on regulatory matters, responses to rulemakings and policy development, and implementation related to significant new rules and regulations. Prior to rejoining PwC, Diana was the Deputy Chief Accountant in the Office of the Chief Accountant (OCA) at the SEC where she led the activities of the OCA’s Professional Practices Group.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

We continue our lease accounting podcast miniseries with an episode focused on embedded leases. Some arrangements to provide services or purchase inventory rely on the use of a specific asset to fulfill the contract. Even if the word “lease” doesn’t appear, the rights conveyed to the customer may still meet the definition of a lease—shifting the transaction from simply purchasing services or goods to leasing an asset. We explain why identifying an embedded lease is critical and how it can significantly impact the accounting and financial reporting for both customers and suppliers.

In this episode, we discuss:

• 1:40 – An overview of embedded leases and common arrangements
• 6:50 – Determining whether an arrangement contains a lease
• 24:07 – Allocating contract consideration to lease and nonlease components
• 34:19 – Available practical expedients
• 39:01 – Accounting and reporting implications

For more information, see chapter 2 of our Leases guide and chapter 4 and 5 of our Revenue from contracts with customers guide. You can also listen to the other episodes in this series:

• Lease accounting reset - Presentation and disclosure
• Lease accounting reset - Modifications and terminations
• Lease accounting reset – Variable rents

Be sure to follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to for the latest thought leadership.

About our guests

Marc Jerusalem is a PwC National Office managing director specializing in leasing. Marc consults with clients on complex lease accounting issues and is a frequent contributor to many related PwC National Office publications.

Pat Durbin is a PwC National Office Deputy Chief Accountant. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.

About our guest host

Guest host Diana Stoltzfus is a partner in the National Office who helps to shape PwC’s perspectives on regulatory matters, responses to rulemakings and policy development, and implementation related to significant new rules and regulations. Prior to rejoining PwC, Diana was the Deputy Chief Accountant in the Office of the Chief Accountant (OCA) at the SEC where she led the activities of the OCA’s Professional Practices Group.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.

We continue our lease accounting miniseries with a focus on variable lease payments, an area that can significantly influence lease classification and measurement. In this episode, we explore the complexities of usage-based and index-based payments, fair market rent adjustments, in-substance fixed payments, and more – providing insights into how these variable rents affect the accounting and disclosures.

In this episode, we discuss:

• 1:12 – Fixed versus variable lease payments and their accounting implications
• 7:13 – Fair market rent adjustments
• 9:37 – In-substance fixed payments, including take-or-pay arrangements
• 15:44 – Usage-based lease payment structures
• 22:18 – Tenant improvement allowances and lease incentives
• 26:10 – Accounting for variable lease payments during lease remeasurement

For more information, see chapter 3 and chapter 5 of our Leases guide. In case you missed it – check out the other episodes in this podcast miniseries:

• Lease accounting reset - Presentation and disclosure
• Lease accounting reset – Modifications and terminations

Be sure to follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to stay in the loop.

About our guests

Marc Jerusalem is a managing director in PwC’s National Office specializing in leasing. Marc consults with clients on complex lease accounting issues and is a frequent contributor to many related PwC National Office publications.

Suzanne Stephani is a director in PwC’s National Office specializing in the statement of cash flows as well as the application and interpretation of the accounting guidance related to financing and leasing transactions.

About our guest host

Guest host Diana Stoltzfus is a partner in the National Office who helps to shape PwC’s perspectives on regulatory matters, responses to rulemakings and policy development, and implementation related to significant new rules and regulations. Prior to rejoining PwC, Diana was the Deputy Chief Accountant in the Office of the Chief Accountant (OCA) at the SEC where she led the activities of the OCA’s Professional Practices Group.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.