Russian invasion of Ukraine: Accounting for impacted operations

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In the third of four episodes covering the implications of the war in Ukraine, we focus on accounting considerations for operations that have been impacted by the conflict.

In this episode, Heather Horn was joined by Jay Seliber and Reto Micheluzzi, partners in PwC’s National Office, to discuss some of the specific accounting topics and questions companies may need to consider.

In this episode, you will hear:

• 1:52 - Factors that determine whether deconsolidation of impacted subsidiaries may be necessary
• 7:12 - How to account for deconsolidation
• 14:18 - Impairment considerations for non-financial assets
• 18:46 - Devaluation of the Ruble and related foreign currency impacts
• 22:10 - When to present operations in Russia as assets held for sale
• 26:25 - Other areas to revisit for impairment assessments, including inventory and equity method investments
• 29:11 - How the war in Ukraine is exacerbating supply chain disruptions, and the related accounting implications
• 32:48 - The importance of quality information as well as transparent and timely disclosures about material issues

Want to learn more? Check out our previous podcasts covering the geopolitical implications of the war in Ukraine and an overview of the current state of sanctions, and read our publication, Implications of the Russian government's invasion of Ukraine.

Jay Seliber is a partner in PwC’s National Office. He leverages over 30 years of experience to help clients with their most complex accounting matters, particularly in the areas of mergers and acquisitions, revenue recognition, stock compensation, earnings per share, employee benefits, restructurings, impairments, and financing transactions. Jay is presently PwC's representative to the FASB's Emerging Issues Task Force.

Reto Micheluzzi is a partner in PwC’s National Office with over 25 years of experience solving companies’ most complex accounting and financial reporting issues, creating a path through the dense regulatory framework and bodies of rules. He has a deep understanding of the demands associated with today’s accounting complexities and potential SEC reporting issues, primarily related to M&A, consolidation, reorganizations, and income taxes.

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.

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