Accounting Matters

PPE, right-of-use assets, intangibles, goodwill – we could go on but you get the idea. The vocabulary behind non-financial asset impairments is almost as expansive as the topic itself. So where do you even begin accounting for all it? And how? That’s the focus of this episode of Accounting Matters, where hosts Adam Olsen and Sarah Cage Richter are once again joined by fellow Embarker Jason Larkin to answer critical questions like:What is a non-financial asset?Which impairment models do you use? And when?What’s a triggering event or a recoverability test?How do you account for non-financial asset impairments? For more information on non-financial asset impairments:Accounting for Long-Lived Asset Impairment: Testing, Examples & MoreASC 350, Intangibles—Goodwill and OtherASC 360, Property, Plant, and EquipmentConnect with Embark on:LinkedInInstagramTwitterFacebookYouTube

If you’re looking for insights – or even a definition – on carve-out financial statements, don’t look to US GAAP because it’s slim pickings. That’s why there’s so much head scratching around carve-outs, which probably isn’t great if you have a transaction on the horizon. So join us as we welcome Embarker extraordinaire Chase Anderson for a deeper look into this oft-misunderstood but oh-so important accounting topic, discussing areas like:What are carve-outs and what are they used for?Exit strategies prompting the need for carve-outsCommon methodologies used for preparing carve-out financialsInsider tips on materiality considerations, audit documentation, team preparation, and moreConnect with Embark on:LinkedInInstagramTwitterFacebookYouTubeListen to Accounting Matters on Apple Podcasts, Google Play, and Spotify.

Private companies are getting closer and closer (2022!) to the adoption deadline for the new lease accounting standard, ASC 842. That’s why we sat down with one of Embark’s lease accounting gurus, Ty Cotter, to discuss embedded leases in this episode of Accounting Matters, hitting on topics like:Why embedded leases matter under the new leasing standardCommon contract types that may contain lease componentsThe definition of a lease under ASC 842Accounting for lease and non-lease components in contractsFor more information on embedded leases:The Most Common Lease Accounting Pain Points Under ASC 842ASC 842, LeasesConnect with Embark on:LinkedInInstagramTwitterFacebookYouTubeListen to Accounting Matters on Apple Podcasts, Google Play, and Spotify.

Segment reporting is an inevitable accounting hurdle all companies must clear before going public, not to mention an ongoing maintenance and evaluation requirement for post-IPO organizations. That’s why we sat down with special Embarker guest Jason Larkin for a high-level discussion on this perpetually relevant subject, covering topics like:The who, what, where, when, and why of segment reportingIdentification of operating segments and determination of reportable segmentsRequired segment reporting disclosuresRecurring SEC comments on segment reportingFor more information on Segment Reporting:ASC 280, Segment ReportingFASB Project UpdateConnect with Embark on:LinkedInInstagramTwitterFacebookYouTubeListen to Accounting Matters on Apple Podcasts, Google Play, and Spotify.

Business combinations and asset acquisitions aren’t a tomayto-tomahto situation. This week, we expand on our previous episode on Business Combinations by sitting down with fellow Embarkers Mack Martinez and Krista Holland to discuss the critical differences between the transaction types, including:Applying the “screen” test and definition of a businessRecognizing and measuring asset acquisitions under the cost accumulation modelIdentifying key areas where accounting differences exist Highlighting ongoing FASB developments in the spaceFor more information on Business Combinations and Asset Acquisitions:What You Need to Know About the Updates in ASC 805 (Business Combinations)How Accounting Should Support an Acquisition or MergerASC 805ASU 2017-01Connect with Embark on:LinkedInInstagramTwitterFacebookYouTubeListen to Accounting Matters on Apple Podcasts, Google Play, and Spotify.

Even though SPACs seem to be everywhere these days, there’s still a lot of confusion over certain aspects of accounting for them. That’s why we sat down with fellow Embarker Sam Sorenson for a discussion on what SPACs require from accounting teams, including:SPACs 101: History and the recent hypeOverview of the SPAC lifecycleCommon accounting and financial reporting issues for the target businessTarget business audit considerationsOngoing SEC requirementsAnd more!For more information on SPACs:SPACs: What's a Special Purpose Acquisition Company?SPACs may bring accounting risksConnect with Embark on:LinkedInInstagramTwitterFacebookYouTubeListen to Accounting Matters on Apple Podcasts, Google Play, and Spotify.

The changes to the accounting for credit losses are some of the most significant we’ve seen in decades. In this episode, Accounting Matters discusses what the Current Expected Credit Loss (CECL) model involves and the high-level areas you need to stay aware of if you haven’t adopted the standard yet (we’re talking to you, private companies), including:Who is impacted by CECLWhat the CECL model might mean for your companyAnd be sure to stick around for a conversation with our special guests, Embark consultants Robby Sundberg and Caroline Willet, on what movie CECL would be and why. You won’t find that in the FASB standards.For more information on CECL:Preparing for the Current Expected Credit Loss (CECL) ModelASU 2016-13: Financial Instruments―Credit LossesConnect with Embark on:LinkedInInstagramTwitterFacebookYouTube

The accounting standard on Business Combinations, ASC 805, is one of the most complex and wide-ranging. This episode of Accounting Matters takes a look at this guidance and discusses the most important takeaways, including:What is considered a businessDetermining who acquired who and whenMechanics of the purchase price allocationContingent consideration arrangementsAnd more!For more information on Business Combinations:What You Need to Know About the Updates in ASC 805 (Business Combinations)How Accounting Should Support an Acquisition or MergerASC 805, Business CombinationsConnect with Embark on:LinkedInInstagramTwitterFacebookYouTube

Going concern is at the forefront of the accounting and finance worlds these days – and for good reason. This week, Accounting Matters covers the basics of going concern, why it’s so relevant today, and walks through key areas, including:Management assessmentsSubstantial doubtGoing concern disclosuresAuditor’s considerationsFor more information on going concern:https://www.fasb.org/resources/ccurl/599/128/ASU%202014-15.pdfConnect with Embark on:LinkedInInstagramTwitterFacebookYouTube

What matters most to accountants and financial leadership these days? That’s Accounting Matters – a weekly discussion on today’s most significant accounting topics. So get to know our hosts, Adam Olsen and Nicole Harger from advisory firm Embark, and what you can expect from this weekly plunge into a new, essential accounting topic.Embark's websiteLinkedInInstagramTwitterFacebookListen to Accounting Matters on Apple Podcasts, Google Play, and Spotify.