Presenting the balance sheet – to net or not to net

PwC's accounting podcast

Feb 27 2024 • 25 mins

We continue our month of podcasts focused on financial statement presentation.

In this episode, host Heather Horn sits down with Bret Dooley, Deputy Chief Accountant in PwC’s National Office leading our financial instruments team, for a refresher on a topic that is fundamental to financial reporting for its impact on financial statement ratios – balance sheet offsetting. Together, they break down the complexities involved in determining whether and how to offset balance sheet amounts.

In this episode, you’ll hear:

  • 1:30 – A refresher on balance sheet offsetting, including its purpose and significance to financial statement users
  • 6:15 – A discussion of the general accounting framework, including the four conditions to determine whether a right of setoff exists
  • 15:33 – An explanation of the different offsetting arrangements for derivatives
  • 19:11 – A breakdown of the six criteria for balance sheet offsetting of reverse repurchase and repurchase agreements
  • 22:59 – Final accounting reminders for companies navigating balance sheet offsetting

For more information, read chapters 19 and 22 of our Financial statement presentation guide. Additionally, follow this podcast on your favorite podcast app for more episodes.

Bret Dooley is a Deputy Chief Accountant in PwC’s National office who leads teams focused on the financial services sectors and accounting for financial instruments. He has over 25 years of experience in the financial services, banking, and capital markets industries. Bret focuses on emerging financial reporting issues related to financial instruments, developing interpretive guidance, and assisting clients in resolving complex accounting matters.

Heather 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. With over 30 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 us_podcast@pwc.com.

You Might Like

The Daily
The Daily
The New York Times
The Dan Bongino Show
The Dan Bongino Show
Cumulus Podcast Network | Dan Bongino
WSJ What’s News
WSJ What’s News
The Wall Street Journal
Serial
Serial
Serial Productions & The New York Times
Pod Save America
Pod Save America
Crooked Media
Morning Joe
Morning Joe
Joe Scarborough and Mika Brzezinski, MSNBC
The Glenn Beck Program
The Glenn Beck Program
Blaze Podcast Network
Mark Levin Podcast
Mark Levin Podcast
Cumulus Podcast Network
The Ben Shapiro Show
The Ben Shapiro Show
The Daily Wire
The Rachel Maddow Show
The Rachel Maddow Show
Rachel Maddow, MSNBC
WSJ Your Money Briefing
WSJ Your Money Briefing
The Wall Street Journal
The Fox News Rundown
The Fox News Rundown
FOX News Radio
Morning Wire
Morning Wire
The Daily Wire
The Matt Walsh Show
The Matt Walsh Show
The Daily Wire