Accounting Matters

Understanding DISE is one thing. Actually producing the disclosure every quarter is another. In the final episode of their three-part series, Embark's Nicole Harger and Adam Olsen are joined by David Bushby, who brings real-world perspective from working directly with public companies on DISE implementation. If your team is asking "where do we even start," this episode is the answer.In this episode:How to conduct a readiness assessment and gap analysis before your 2027 effective dateWho needs to be in the room: why finance, IT, HR, procurement, and operations all have a roleKey decisions to make early: cost-incurred vs. expense-incurred, selling expense definition, and voluntary disclosuresSystems and data challenges: fragmented ERPs, the retail inventory method, cost pools, and how to use estimates responsiblyInternal controls for a new disclosure: what needs to be in place before your first filingHow DISE interacts with segment reporting under ASC 280 and what to address in MD&AIndustry-specific pain points for retail, consumer products, manufacturing, life sciences, and techSix practical tips for first-year adoption, including why running a pilot in 2026 could save you significant headaches

If Episode 1 covered the "why" behind DISE, Episode 2 is where theory meets practice. Embark's Nicole Harger and Adam Olsen get into the technical details of all five required natural expense categories, working through the tricky classification questions companies are already bringing to their teams. This is the episode to bookmark when your client asks, "But where exactly does that go?"In this episode:The difference between natural and functional expense classification, and why it matters for your disclosurePurchases of inventory: what's included, what's excluded, and how intercompany transactions and inbound freight factor inCost-incurred vs. expense-incurred basis: what each means and why most companies will elect cost-incurredEmployee compensation: the ASC 718 definition of "employee," how to handle contractors and leased workers, and a practical approach to mixed workforcesDepreciation and intangible asset amortization: how to handle finance lease ROU assets, internal-use software, and the costs that look like amortization but aren'tDD&A for extractive industries, plus special considerations for asset-related costs, liability-related expenses, and reimbursement arrangementsHow to define selling expenses for your business, and why that definition has to hold up over time

The FASB just issued new guidance that will fundamentally change how public companies communicate about their cost structure. In the first episode of a three-part series, Embark's Nicole Harger and Adam Olsen break down ASU 2024-03, the Disaggregation of Income Statement Expenses (DISE) standard, and why companies need to start preparing now, even with a 2027 effective date on the horizon.This episode covers the foundation: the investor demand driving the standard, who it applies to, and what "relevant expense captions" actually mean for your financial reporting.In this episode:Why the FASB issued DISE and how it fits into a broader expense transparency initiative (alongside ASU 2023-07 and ASU 2023-09)Who is in scope: all public business entities, including broker-dealers, IPO-stage companies, and private companies whose financials appear in SEC filingsEffective dates: annual periods beginning after December 15, 2026; interim periods beginning after December 15, 2027What goes into the tabular footnote disclosure, including the five required natural expense categoriesHow to identify relevant expense captions, and the key exceptions and practical expedients that offer some relief

Collaboration arrangements are becoming more common across industries, from biotech partnerships to platform-sharing in tech. But when it comes to accounting, things get complicated fast.In this episode of Accounting Matters, Nicole Harger and Adam Olsen explore how to navigate ASC 808 and ASC 606. They cover:What qualifies as a collaborative arrangementHow to determine if (and when) ASC 606 appliesReal-world examples involving IP licenses, cost-sharing, and milestone paymentsThe role of customer relationships in collaboration agreementsDisclosure expectations and SEC hot buttonsCommon pitfalls and best practicesWhether you’re structuring a new deal or reviewing an existing one, this episode offers a practical roadmap to get the accounting right.

Join hosts Nicole Harger and Adam Olsen as they explore the intricacies of accounting for R&D costs. This episode covers the current U.S. GAAP treatment, challenges in the life sciences sector, and differences with IFRS. Discover potential changes from FASB and gain insights into how these accounting principles impact financial statements across industries. Perfect for professionals navigating the evolving landscape of R&D accounting.

In this episode of "Accounting Matters," hosts Nicole Harger and Adam Olsen explore the FASB's 2025 agenda, highlighting key projects aimed at modernizing financial reporting standards. They discuss the proposed overhaul of software cost accounting, the introduction of a framework for environmental credit programs, and long-awaited guidance on accounting for government grants. These initiatives reflect a shift towards greater transparency and decision-usefulness in financial statements, addressing real-world challenges faced by companies today. Tune in to understand how these changes could impact your organization's financial reporting practices.

Join hosts Nicole Harger and Adam Olsen as they explore the complex world of tariffs in this episode of Accounting Matters. Discover how global trade policies and tariffs are reshaping financial statements, supply chains, and pricing strategies. From the hardest-hit industries to strategic mitigation tactics, this episode provides valuable insights for navigating today's dynamic trade environment. Packed with in-depth analysis, it equips you with the knowledge to stay ahead in the financial landscape.

Join hosts Adam Olsen and Allison Bradshaw as they break down the EU's proposed Omnibus package in this episode of Accounting Matters. They explore the evolving landscape of sustainability reporting, including SEC climate rules, state regulations, and ISSB standards. Discover how these changes impact CSRD obligations, scoping, timing, and assurance requirements. Packed with insights, this episode equips you with the knowledge to navigate the future of sustainability reporting.

Join hosts Nicole Harger and Adam Olsen as they break down the key takeaways from the 2024 AICPA & CIMA Conference on Current SEC & PCAOB Developments! In this episode, they dive deep into the latest shifts in SEC & FASB priorities, the rising impact of AI on the accounting industry, and the evolving landscape of ESG reporting. Packed with expert analysis and actionable insights, we provide you with everything you need to stay ahead in accounting and finance.

Coming to you live from Workiva Amplify! Join your hosts Adam and Allison as they dive into the recent EFRAG study unpacking key findings from companies navigating their early implementation of the EU's CSRD.EFRAG Study on Early Implementation of ESRS

Your AM Now hosts Adam Olsen and Matt Fisser are back to bring you what’s happening in accounting and finance, including stories on:The FASB’s proposed ASU on the scope of derivative accounting and share-based payments from customers.The IASB’s recently completed review of IFRS 15 and IFRS for SMEs Accounting Standard along with some final decisions on their rate-regulated activities project.The recently released Exposure Draft proposing amendments to IFRS 19, Subsidiaries without Public Accountability: DisclosuresThe proposed inclusion of illustrative examples in the IFRS standards to enhance the reporting of climate-related and other uncertainties in financial statements.The recently released set of FAQs from the Greenhouse Gas Protocol to help companies in applying their standards.For more on this week’s topics:Proposed Accounting Standards Update, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606)IFRS, Rate-Regulated ActivitiesIFRS Exposure Draft, Amendments to IFRS 19 Subsidiaries without Public Accountability: DisclosuresIFRS Exposure Draft, Climate-related and Other Uncertainties in the Financial StatementsGreenhouse Gas Protocol, ​​Corporate Standard Frequently Asked QuestionsConnect with Embark on: LinkedInInstagramTwitterFacebookYouTubeListen to AM Now on Apple Podcasts and Spotify.

Practical ways leaders can overcome the accountant shortage from 3 managing directors with direct experience.

Tune into Accounting Matters as we speak about ASU 2024-01. Adam and Nicole explore how the latest profits interest guidance impacts your business & provide results-driven approaches.

Make room for Adam Olsen and Matt Fisser as they discuss all of the recent accounting and finance stories you need to know, including:The FASB recently completed its Conceptual Framework with a new and final chapter on measuring assets and liabilities recognized in financial statements.Tentative decisions from the FASB on EITF issues centered on induced conversions of convertible debt instruments.Another FASB tentative decision, determining the acquirer in the acquisition of a VIE.Targeted amendments to the IASB’s IFRS standards on first-time adoption of IFRS, financial instruments, consolidated financial statements, and statement of cash flows.A Center for Audit Quality report found that 98% of companies disclosed some level of ESG-related information in 2022, 70% obtaining some degree of voluntary assurance.CA Governor Gavin Newsom proposed delaying the implementation of California Senate Bills 253 and 261 by two years, from 2026 to 2028.Discussion on the CrowdStrike/Windows outage and what it might mean for public companies subject to the SEC’s new cybersecurity disclosure rules.For more on this week’s topics:FASB Issues New and Final Chapter of Its Conceptual Framework: MeasurementFASB: Tentative Board Decisions 07-17-24 (induced conversions/VIE)IASB issues annual improvements to IFRS Accounting StandardsS&P 500 ESG Reporting and Assurance AnalysisAct to amend Sections 38532 & 38533 of the Health and Safety Code, relating to GHGPublic Company Cybersecurity Disclosures; Final RulesConnect with Embark on: LinkedInInstagramTwitterFacebookYouTubeListen to AM Now on Apple Podcasts and Spotify.

On today's Accounting Matters episode, we have an on-demand webinar with 2 ERP specialists who have worked on a collective 21 related projects. They will guide you though the ERP assessment process and best practices along the way.You can watch the full video here: https://www.linkedin.com/events/avoiderpregret-the25-failurerat7207077293142265858/theater/

Adam Olsen and Matt Fisser are here to dish all of the post-Fourth of July accounting & finance news you need to know, including:FASB’s plans to improve ASC 350-40, requiring an entity to use more judgment to determine when to recognize software costsProgress on FASB’s project for disaggregation of income statement expensesSneak peek at the AICPA’s update to their Valuation of Privately Held Company Equity Securities Issued as Compensation—aka the Cheap Stock Guide.Announced improvements to the SEC websiteNew interpretive guidance from the SEC to clarify its recent cybersecurity rulesIASB finalizing the revision of IFRS Practice Statement 1, Management CommentaryISSB’s plan to harmonize and consolidate the global sustainability disclosure landscape Update on the FTC rule effectively banning noncompete agreements in the USFor more on this week’s topics:FASB: Tentative Board Decisions, Accounting for and Disclosure of Software CostsFASB: Tentative Board Decisions, Disaggregation—Income Statement ExpensesWorking Draft of Chapters 8 and 9 from the Valuation of Privately-Held-Company Equity Securities Issued as Compensation Accounting and Valuation GuideSEC Updates Website to Improve Compliance, Functionality, and User ExperienceCyber Update: SEC Issues New Guidance on Cybersecurity Incident DisclosureIASB agrees to finalise the revision of the Management Commentary Practice StatementISSB delivers further harmonisation of the sustainability disclosure landscapeFederal judge partially blocks U.S. ban on noncompetesConnect with Embark on: LinkedInInstagramTwitterFacebookYouTubeListen to AM Now on Apple Podcasts and Spotify.

Your AM Now host Adam Olsen is back at it again, delivering critical accounting and finance stories to your eyes and ears, including:The 6/12 FASB meeting discussing its project on accounting for environmental credit programs (ECPs) as well as the Board’s agenda prioritization.FASB’s Emerging Issues Task Force (EITF) recent deliberations on the existing accounting guidance for the determination of an accounting acquirer.The European Council’s announcement on its agreement with proposals to cut down on greenwashing and false environmental claims,The new and impressive Workiva Carbon solution, designed to help companies enhance their existing ESG & Sustainability platform to support global climate regulations.For more on this week’s topics:FASB: Tentative Board Decisions, 6/12/24EITF 6/14 Meeting SummaryEU Council Agrees on New Rules to Tackle Greenwashing in Product Green ClaimsWorkiva Launches New Carbon Data Management and Reporting SolutionConnect with Embark on: LinkedInInstagramTwitterFacebookYouTubeListen to AM Now on Apple Podcasts and Spotify.

Your trusty AM Now hosts Adam Olsen and Matt Fisser are at it again, bringing you the accounting and finance stories you need to know, including:The SEC’s statement on IFRS 19 reducing disclosures for certain subsidiaries and the impact on SEC filings, including any additional disclosures likely required.The SEC provided relief to BF Borgers clients with additional time to hire a new public accountant and file quarterly and transition reports on their Form 10-Q given certain requirements.The IFRS Foundation’s updated guide on getting started on implementing the Integrated Reporting Framework and how to take account of the IFRS Sustainability Disclosure Standards.New ESMA guidelines on using ESG and sustainability-related terms in investment fund names.EFRAG’s compilation of 68 unique explanations to respond to various stakeholders’ technical questions on ESRS application required under the CSRD.For more on this week’s topics:Statement on the Application of IFRS 19, Subsidiaries without Public Accountability: Disclosures, in Filings with the SECSecurities Exchange Act of 1934, Release No. 34-100185 (BF Borgers)IFRS Foundation: Transition to integrated reportingESMA Guidelines establish harmonised criteria for use of ESG and sustainability terms in fund namesEFRAG Releases New ESRS Q And A Technical ExplanationsConnect with Embark on: LinkedInInstagramTwitterFacebookYouTubeListen to AM Now on Apple Podcasts and Spotify.