Companies are reconsidering their risk thinking and approaches, but they’re also transforming to align with changing market imperatives—and in the process, exposing themselves to multi-directional risks. Read more
Whether you are just starting out on your GRC journey, or are years in, let us help you make sure you have thought about the long term sustainability and optimization of your people, processes, technology and more.
HR Innovation offers advanced thinking about the challenges that should be uppermost on the minds and agendas of organizations and their Human Resources (HR) leaders. In this issue of HR Innovation, we focus on Total Rewards, and delve into the challenges employers face of getting their employees' "total rewards" packages right.
Human Resource (HR) departments are implementing global mobility programs designed to manage complex international relocations. However, the activities of individuals in foreign locations can create a variety of both individual and corporate level tax issues for the enterprise, depending upon the circumstances.
Merger and acquisition deal value in the pharmaceutical and life sciences sector increased in the first quarter of 2013 relative to the first quarter of 2012. The pharmaceutical segment recorded the largest gains in deal value during the quarter on the strength of several large transactions.
The software industry is in the midst of significant change. Cloud, software-as-a-service (SaaS), mobile devices, and consumerization of IT, are changing how software vendors develop, market, sell, distribute and support their products. This report ranks leading software companies from key markets around the world, and shares insights into where the industry is going from executives from Adobe, BMC Software, CollabNet, Jive Software, NetSuite, Red Hat, SAP, SAS, Splunk, and TSIA.
Members of PwC's Washington National Tax practice will lead an hour-long webcast that includes a discussion of common M&A transactions and the potential accounting method considerations that may result.
PwC recently convened several roundtables of employers in New York, Chicago, and Atlanta to discuss health coverage at this pivotal moment. This thought leadership article highlights the conversations and results of the related survey.
On May 14, 2013, COSO published an updated Internal Control-Integrated Framework and related illustrative documents. This Dataline highlights noteworthy updates to the Framework, summarizes the purpose of the illustrative documents, and highlights key considerations for clients.
5/13/13 | US Capital Markets and Accounting Advisory Services
When conducting cross border deals, it is important to Identify potential financial reporting differences to maximize deal value and for understanding how financial reporting and regulatory requirements interact. Embedding GAAP changes and managing multi-GAAP reporting post-acquisition requires planning.
10Minutes on conflict minerals provides insight into the strategic benefits and risks companies will want to focus on as they comply with the SEC's conflict minerals rule. The rule is effective for 2013 calendar year operations, so regardless of whether companies view conflict minerals as a supply chain opportunity, risk to their brand or another regulatory to-do, they should act now to prepare.
Deal activity in the metals sector declined in first quarter of 2013, with transaction volumes at their lowest since the first quarter of 2009. While Metals industry M&A activity is projected to be flat over the near term, US plans for infrastructure investment may increase the demand for iron, steel, and aluminum in the United States.
As the economy recovers, metrics in PwC Saratoga's 2013/2014 US Human Capital Effectiveness Report reflect improvement and foreshadow struggles. There are signs of increasing workforce productivity and associated investments in HR and labor. Yet this recovery also puts pressure on voluntary separation rates, and the turnover rate has risen, to a level beyond what PwC Saratoga's models had predicted two years ago.
While the first quarter of 2013 saw technology M&A drop precipitously, the foundation is being laid for more robust deal activity this year as political and economic uncertainties subside. Software M&A was the sole bright spot in the industry for the first quarter driven by companies across industries investing in software-driven functionality and automation in products and services.
PwC's Experience Radar helps businesses find the often hidden sources of value that drive exceptional, differentiated customer experience. By helping Enterprise Software leaders rank their product and service features, Experience Radar locates opportunities to create value and thereby bolster top-line growth and bottom-line results.
Companies are reconsidering their risk thinking and approaches, but they’re also transforming to align with changing market imperatives—and in the process, exposing themselves to multi-directional risks.
The latest piece in the Digital IQ Snapshot series explores why business leaders need to pay attention to current trends in emerging technologies, such as the consumerization of technology, “bring your own device” (BYOD), and the growing pressure to enable instant contact, collaboration and feedback with stakeholders. Organizations that are not paying attention may soon lag competitors in efficiency and profitability.
Responding to concerns regarding the poor funding levels of many defined benefit multiemployer pension plans, as well as the lack of information on these plans in financial filings, the Financial Accounting Standards Board (FASB) issued a final standard significantly revising the disclosure requirements for participating employers.
This issue of BoardroomDirect® addresses cybersecurity risk being a board priority, the SEC applying website guidance to company social media use, the US Chamber publishing proxy advisor principles, PwC‘s 2013 State of the Internal Audit Profession Survey, NYC attorneys asking NYSE to reconsider its audit committee risk rule, and COSO issuing an updated framework next month.
This quarter saw one the largest consumer products deals in history with the $23.5B Heinz deal along with five other multi-billion deals and several other significant transactions with alternative deal structures. Consumer confidence rebounded from the decline seen at the end of December driven primarily by improving household financial conditions related to positive trends in the housing and financial markets. We expect companies to continue to focus on expanding internationally, expanding capabilities across omnichannels and look for avenues to improve profitability through divestment of non-core operations.
This publication is a guide to help both directors and executives of companies planning an IPO think through the many governance decisions needed. It creates context for the IPO and the directors’ roles and covers building the board, understanding the myriad governance influences, providing proper protection for directors, and preparing for your first year as a public company.
Consumer-packaged goods (CPG) companies, retailers, and their business partners often tout the ways they put customers at the center of their strategies. But while many companies do a good job of understanding their customers, perhaps not as many create demand by coordinating across marketing, sales, and innovation—functions and activities that now encompass the demand chain. This 10Minutes explores ways companies can capitalize on knowing their customer with demand functions pulling in the same direction.
China recently introduced its 12th Five-Year Plan, which reinforces the government's commitment to easing ownership requirements. This 10Minutes discusses opportunities that private and foreign providers, payers, and investors can adopt to build a presence in China's growing healthcare market.
A very active last two weeks of March helped close out a strong first quarter for U.S. IPOs. Total IPO proceeds raised in the U.S. in the first quarter of 2013 exceeded the first quarter of 2012, despite a decrease in the volume of IPOs, according to IPO Watch, a quarterly and annual survey of IPOs listed on U.S. stock exchanges by PwC US.
Despite 2011’s recovery constraints and challenges, in the macroeconomic environment, there are still signs of growth in the automotive industry. Automotive mergers and acquisitions (M&A) activity in the first half of 2012 has given way to the macroeconomic pressures, resulting in a passive M&A activity for 2012 overall.
Healthcare companies have been gathering feedback from patients for years. Now, the accessibility of that feedback is influencing people’s healthcare decision making. Reporting requirements on ratings and reviews are prompting insurers and providers to look more comprehensively at the consumer experience.
This 10Minutes discusses why cybersecurity is more than an IT challenge—it’s a business imperative. New technologies, well-funded and determined adversaries, and interconnected business ecosystems have combined to increase your company’s exposure to cyberattacks. Critical digital assets are being targeted and the potential impact to your business has never been greater. In order to sufficiently protect the business, future cash flows, and shareholder value, your approach to cybersecurity must keep pace.
4/4/13 | US Capital Markets and Accounting Advisory Services
US companies seeking to acquire acquisition targets headquartered outside of the United States should understand the foreign target’s financial information, including the application of non-US GAAP and the target’s accounting policies, and identify where GAAP and policy are not aligned with the buyer’s basis of preparing its financial information.
Join us for our quarterly webcast designed for corporate financial reporting and HR executives. PwC specialists will provide their perspectives on emerging accounting, regulatory and market developments within the incentive compensation and employee benefits arena.
This PwC publication is intended to help management and the board of directors of public companies prepare for the annual meeting of shareholders. It contains example questions on topics that may be top-of-mind for shareholders, along with background information and suggested actions for management’s consideration.
Conflict minerals compliance has quickly become one of the most pressing issues for both SEC and non-SEC registered companies. As we have spoken to a large number of companies regarding their conflict minerals implementation programs, we would like to share with you some observations and key takeaways.
This study was developed to provide a check-up on some of the major determining factors for the success of EVs in the near-mid-and long-term. The survey focuses on four key areas: infrastructure, pricing, geography and outlook.
Aside from billing matters and service calls, customers historically have had little interaction with their utility providers. So it stands to reason that customer engagement remains a hurdle for traditional utility companies.
Integration success is critically dependent on an effective finance function to deliver business insight, help ensure compliance and controls, and create operational efficiencies for capturing deal value across the organization.
The Federal Government faces a situation similar to that of the private sector in the early 2000s. The question is whether Federal COOs, CFOs, and CIOs will wait for OMB to levy cuts on them or whether Federal executives will act to address the systemic drivers of IT expense so they are ready to respond to the inevitable round of forthcoming budget cuts.
Mergers and acquisitions for retail and consumer product companies can be influenced by the brands involved in the transaction. Such "brand-rich" transactions can bring accounting complexities that requires close attention to the valuation and purchase accounting process.
The survey focuses on how automotive suppliers achieve supply chain efficiency and effectiveness through current planning, sourcing, and delivery capabilities. The study analyzes overall supplier performance, across each segment.
The MD&A requirements call for a discussion of: the historical financial results for the period covered by the financial statements (typically three years), liquidity, capital expenditures, off-balance sheet arrangements, contractual obligations, and known prospective information. They also encourage management to describe matters that are most significant in the company’s circumstances and to avoid boilerplate discussions.
Divestiture activity remained brisk during 2012 driven by a continued desire by companies to generate cash, spin-off fast growing segments and exit underperforming or non-core assets. Companies that do the hard work up front to develop an articulated divestiture strategy supported by comprehensive and accurate company data are best positioned for long term success.
2/27/13 | US Capital Markets and Accounting Advisory Services
Companies that structure renewable energy investments to allow investors to achieve returns through tax credits should also understand that the income statement impact of renewable energy investments can be particularly complex.
These days, the infrastructure of even the biggest, best-prepared organization is vulnerable to cyber attacks, which are persistent, well organized, constantly evolving — and often successful. This PwC publication explains how cyber crime can seriously damage brands, erode customer confidence, violate compliance mandates, and weaken the ability to generate revenue.
Financial services mergers & acquisitions (M&A) will face both uncertainty and opportunities in 2013 due to several factors including increased regulatory costs, depressed organic growth, and the greater availability of attractive financing.
Television viewing trends are changing, which could impact TV network revenues and business models. Partnerships, new capabilities, and a strategy incorporating second screen technologies can be an important engine for growth.
Shale oil could revolutionise the world’s energy markets over the next 20 years, resulting in lower oil prices, higher global GDP, changing geopolitics and shifting business models for oil and gas companies.
After decades of relying on agency distribution, life insurers are unprepared to keep up with changing consumer buying habits and behaviors. The number of life insurance agents continues to decline as more consumers turn to the Web for insurance. Insurers must adapt their go-to-market strategies toward direct distribution or risk losing market share.
What does a customer-centered organization look like? What investments are needed to take you there, and what might that journey look like? This 10Minutes discusses these questions and how companies who focus on creating a customer-centered organization may reap real dividends.
This PwC Saratoga webcast focuses on how to dispel “myths” related to predictive analytics and discusses ways to help deploy predictive solutions to help you leverage valuable historic data that already exists in your systems and surveys.
Mobile technology is changing the way that power and utility companies operate their businesses, from the job site to the back office. Utilities that successfully deploy mobility solutions achieve productivity improvements of 20% to 30%.
Merger and acquisition activity revealed that six of the top 10 deals in the alternative energy sector, and deals valued $50 million or greater continued its upward trend in the 4th quarter of 2012. Find out more by reading this issue of Power Deals from PwC's US Power and Utilities practice.
The review indicates that 2012 deal activity has been positive compared to 2011. We expect R&C deal activity will continue its positive momentum during 2013 as companies look to focus on avenues to grow core operations, expand their capabilities to execute across the rapidly developing omnichannel landscape, and increase their global footprint to access higher growth markets.
According to a report from PwC, digital technology continues to reshape the way companies and consumers interact, but social media is not replacing the in-store shopping experience. Among the findings, 45 percent of consumers continue to shop in a physical store daily or weekly.
This issue of BoardroomDirect® covers PwC’s Key questions for board and audit committee members and 16th Annual Global CEO Survey, the need for directors to understand IT and social governance, the latest news on the 2013 proxy season, the new audit committee communication auditing standard, and the nomination of Mary Jo White as the next SEC chair.
Financial Executives International (FEI) presents the top challenges for financial executives for 2013. Among key challenges are financial reform, ICEFR, cybersecurity, U.S. deficit and debt, taxes, private company accounting, IFRS, FASB/SEC appointments, health care, etc.
In the wake of recent natural disasters, CBI has new approaches to modeling and risk assessment. Principles based reserving (PBR) for life products will require many insurers to take a fresh look at their systems, processes, data and governance for both pricing and valuation. read the first two sections of the 2013 edition of Top Issues, which PwC will release in its entirety in March.
The Winter 2013 focuses on what directors should know about (1) new guidance from the SEC and DOJ about the Foreign Corrupt Practices Act and (2) policy updates from the ISS on executive compensation, board response to proposals with majority shareholder support, and hedging of company stock. It also includes an article on what directors should understand about data security and the likelihood of a cyberattack on their company.
HR Innovation offers advanced thinking about the challenges that should be uppermost on the minds and agendas of organizations and their Human Resources (HR) leaders. In this issue of HR Innovation, we focus on HR Transaction Effectiveness, and delve into what it takes to effectively navigate the maze of critical talent-based decisions that can support deal success, shorten the time to close, and boost value.
Dealmakers are increasingly using non-traditional forms of consideration to help facilitate negotiations and bridge value gaps on transactions. Learn about the trade-offs and the situations when different types of consideration are typically most beneficial.
2013 is shaping up as a pivotal year. Short-term confidence in revenue growth is faltering for US-based CEOs, according to PwC's 16th Annual Global CEO Survey. Yet US CEOs are honing approaches to set the foundation for new growth. Discover where US CEOs see their opportunities and business challenges in 2013.
US family enterprises remain optimistic despite very real challenges ahead. They fully recognize that to thrive in a fast-evolving business landscape and still-uncertain economy, they’ll need to out-innovate their peers and seek new avenues of growth. That requires harnessing the right blend of entrepreneurship, talent, technology, and leadership. Our report discusses how family businesses are rising to the challenge and what they can do to improve their odds.
The financial crisis and new capital and regulatory rules have forced asset managers to reduce fees and have increased the challenges for sell-side firms participating in the cash equities and fixed income execution to custody value chain. Find out how firms are changing their business models to adapt to these market changes.
PwC analyzed average US domestic airfares in 2005 to compare how they have changed in relation to labor costs and fuel costs to measure the impact of these economic indicators against an airline company's financial performance. Our latest report analyzes the impacts of recent mega-mergers on the US domestic airline industry.
In 2013, company leaders are looking for value creation from their operations. To achieve this goal, organizations are moving beyond shared services and outsourcing to a Global Business Services (GBS) model. GBS helps provide those intangibles by focusing on customer needs and business strategy first and foremost.
Foreign Account Tax Compliance Act (“FATCA”) was enacted as part of the Hiring to Restore Incentives (“HIRE”) Act. FATCA was enacted with a primary goal of providing the Internal Revenue Service (“IRS”) with an increased ability to detect US tax evaders concealing their assets in foreign accounts and investments.
Now that the President and Congress have come to an agreement on tax rates, companies and executives can begin to craft compensation programs that address the higher income, capital gains and dividend tax rates on high earners. Please join us for a panel discussion on the issues and choices facing employers and executives for 2013 and beyond.
This issue of BoardroomDirect® covers the relationship between the board and CIO regarding IT oversight, PwC's Our focus on audit quality report, the latest SEC whistleblower data, the SEC's leadership change and the release of a resource guide on the Foreign Corrupt Practices Act.
Find out what companies can do to be as prepared as possible for the next natural disaster or business interruption that impacts their organization. Join PwC for a complimentary webcast, which will compliment a new paper being released in early January on the importance of a comprehensive business continuity management (BCM) program.
Many organizations are surprised and frustrated to learn that just implementing SAP GRC Access Risk Analysis does not resolve your SOD/SA issues. We hope you can join PwC for this webcast so that we can share ideas on how you can optimize your ruleset from both a compliance and risk perspective.
This issue of the Corporate Board Member magazine series, by external corporate governance thought leaders on current issues impacting board and audit committee members, includes an interview with Mary Ann Cloyd, Leader of PwC's Center for Board Governance, on what directors need to know about conflict minerals. Other articles in this volume include compensation committee basics and dealing with cyber risk.
The acquisition of a business can have a significant impact on both the risk exposures and risk management strategies of the combined entity. In many cases, an acquirer’s financial risk exposure will increase as a result of the acquisition. However, there may be situations in which the acquiree’s operations reduce the acquirer’s current risk exposure. In any event, identifying potential changes in enterprise risks, creating an action plan to address them, and managing changes to risk management strategies post-acquisition are critical to developing short- and long-term solutions for integrating financial risk management considerations in an acquisition.
Aerospace and defense merger and acquisition activity increased in value and volume in 2011. Large deal transactions contributed to the increase. The outlook for deal activity in 2012 is favorable as non-US companies increase their competitiveness .
Even if the President and Congress agree to extend all Bush-era tax rates for 2013, taxes on higher income individuals will increase next year. Companies and executives can take actions now to accelerate income to 2012 to minimize the impact of the higher employee Medicare taxes effective in 2013. Companies can also consider changes to compensation programs for the future to minimize the impact of the higher tax rates. Please join us for a one hour webcast discussion on these topics.
Companies that pursue growth must take on risk. The latest article in our Growing Your Business series for private companies looks at the top risks flagged by private companies, discussing how adopting less-traditional forms of risk management can keep shocks to the system from derailing corporate strategy and undermining growth.
PwC's quarterly Private Company Trendsetter Barometer tracks the business issues and best practices of privately held US growth businesses. This quarter's report indicates private companies increased their projected revenue growth rate for the next 12 months, despite ongoing uncertainty about the economy.
Mortgage fraud reports rose 31% in 2011, costing the industry $3 billion as fraudsters have changed their target from loan origination to default servicing, loan modifications, short sales, and property liquidations. Mortgage companies need to change their mortgage fraud prevention strategy.
Media and communications companies face the challenge of not only attracting but of keeping customers. While good value drives loyalty, customer service, honesty, and trust also contribute to brand allegiance. These qualities help media and communications companies attract and maintain customers and compete against start-ups and price-driven competitors.
The globalization of business models and dramatic change in the way businesses operate and compete in today's economy have resulted in a shift in M&A strategy and execution. Increasingly, corporations and investors are going beyond the traditional acquisition/disposal model, using joint ventures and business alliances to achieve their business development objectives. Join us for this PwC webcast to learn how you can navigate these often complicated business models.
While uncertainty over the global economic environment and volatile equity markets significantly slowed U.S. deal volume earlier in the year, an uptick in activity during the end of the second quarter and through the third quarter, in conjunction with an active pipeline, indicated the M&A market may be regaining momentum halfway through the year. Watch this PwC webcast to learn the current state of play in the US, the trends impacting dealmaking, and what we envision the deal market could look like in 2013.
Despite many threats to profitability, retail banks have rich opportunities for growth. Customers will pay for banking experiences they value. The challenge lies in delighting customers through experiences they value rather than exhausting resources on offerings they ignore.
Cleantech investment, at $791 million, declined by 20% in Q3 2012 compared to the second quarter, a rate similar to that of overall venture investment. Deal volume remained the same on a quarter-to-quarter basis but volume of activity on a year-over-year basis saw a decrease of 33 percent from 86 deals in the third quarter of 2011 to 58 deals in the third quarter of 2012.
Once bolstered by a series of mega-deals in excess of $10 billion, technology deal value declined in the third quarter and volume remained flat. Smaller IP deals and acquisitions continued while larger technology players remained on the acquisition sideline to focus on their internal operations after substantial consolidation in preceding quarters.
What will the impact of the US presidential election be on the cost of providing healthcare for your business? In our latest report, PwC's Health Research Institute provides a roadmap of the many changes headed your way, and offers a roadmap on how to sidestep any obstacles implementation may toss your way
Merger and acquisition activity in consumer finance has increased due to regulatory scrutiny, higher capital costs, uncertainty over government sponsored entity (GSE) reform, and general market changes. Consumer finance companies should assess their integration plans while keeping the associated risks and opportunities top of mind.
While tight budgets have forestalled updates to Security programs, many Retail & Consumer Products (R&C) respondents are confident they’re winning the game. But the rules—and the players—have changed. With 1,196 US respondents, this brief R&C Insights document covers industry specific results of the Global State of Information Security® Survey 2013.
Retailing 2020: Winning in a polarized world identifies economic drivers that will shape the future US retail landscape and success factors winning retailers and suppliers will likely need to manage to drive growth in the retail landscape of 2020.
HR Transaction Effectiveness - how do you navigate the maze of critical talent-based decisions that can support deal success? In this issue of HR Innovation, we explore the potential value of mergers, acquisitions, dispositions, joint ventures, and other deals.
This PwC survey highlights the significant contribution family businesses bring to economies and communities around the world. We discovered how family businesses build solid foundations for growth, the challenges they face and, importantly, what the future holds.
PwC and the National Association of Stock Plan Professionals (NASPP) have released the 2012 Global Equity Incentives Survey (GEIS): “Back to the Basics” - Executive Summary. Results from the 2012 GEIS clearly indicate that the same drivers remain, although it is interesting to see how the same drivers play out in different environments. The nuances of the changes from 2011 to 2012 certainly indicate that companies are growing increasingly comfortable doing business on a global basis and taking on risk with doing business globally.
Manufacturing Barometer is PwC's quarterly survey of US-based executives in large, multinational industrial manufacturing businesses. Despite continued uncertainty regarding the prospects of both the US and global economies, the majority of US industrial manufacturers remain positive regarding the overall revenue outlook for the next 12 months.
PwC invited independent directors from the boards of mutual fund complexes to discuss issues facing the industry, including new and forthcoming regulations, adopting leading-edge practices in risk management and valuation, conducting effective contract review processes and improving the effectiveness of boards.
In today’s world of emerging technologies, emerging markets, and emerging consumer demands, companies must emerge too — out of old molds and into new ones — if they are to survive and thrive. Read about why 75% of US private companies are prioritizing innovation, with growth as their top objective.
The asset management industry is experiencing structural change driven by investor preferences, pricing pressure and uncertain markets which introduce the risk of misalignment between business and IT strategy.
Talent continues to top the list of executive concerns. Company leaders are focusing on how talent can help them achieve the following four strategic priorities: power growth, realize ROI, manage risk, and enable transformation.
Signs point to a potential surge in domestic manufacturing, and US companies are carefully watching seven key factors that are impacting the trend. They also need to consider what a potential move or expansion of manufacturing facilities to the US could mean for all aspects of their business.
Regulatory changes present an opportunity for property and casualty (P&C) and life insurance companies to reexamine and risk management strategies, processes, and infrastructures for measuring performance and analyzing risk.
The manufacturing sector in the US is rebounding. Factors that could impact reshoring decisions include labor, materials, transportation/energy costs, market demand, the availability of talent and capital, tax rates, and currency fluctuations.
Global Technology Scorecard is a PwC analysis and benchmark of top technology companies. The Scorecard cross-compares company quarterly and annual performance and revenues. We also offer a deeper dive into data through our online charting tool allowing you to get up close to raw statistics and manipulate which companies you'd like to compare and benchmark against .
Recent press reports have described the efforts of two large companies with significant pension obligations to "de-risk" defined benefit pension plans by offering retirees in pay status a one-time opportunity to receive a lump sum payment in lieu of continuing annuity payments. The companies are seeking to reduce the volatility of future pension obligations for both funding and financial statement purposes. The IRS recently issued private letter rulings to each company confirming that offering a one-time opportunity for a lump sum payment to individuals who are currently receiving annuity payments does not violate the requirements for required minimum payments under the Internal Revenue Code.
This edition of mutual fund audit committee current developments highlights non-agency residential mortgage-backed securities, changes to consolidation as outcome of proposed entity definitions, and FATCA implementation updates.
Venture capitalists invested $1.0 billion in 55 Cleantech deals during the second quarter of 2012, according to findings from the MoneyTree™ Report. Cleantech funding declined 11 percent and deals were down 42 percent compared to the second quarter of 2011.
Merger and acquisition activity in the transportation and logistics industry showed signs of remaining on pace to exceed 2011 deal value. Prospects for mergers and acquisitions look promising for the second half of the year.
Second quarter merger and acquisition activity in the industrial manufacturing sector remained weak as demand continues to lessen due to the EU crisis. Financial investors are waiting for better clarity on growth prospects in the sector. Divestitures continue to drive M&A activity.
Chemical industry merger and acquisition deal volume improved slightly during the second quarter while deal value declined due to a decrease in large deals. The global economy continued to slow deal activity in the Eurozone, China, and India.
On May 7, 2012, a new Venezuelan Labor Law, the Organic Law of Work and Workers, came into effect. The law creates job stability, except for terminations for due cause, and expands an employee's benefits, including the employee's year-end bonus and vacation bonus payments, maternity leave, and seniority premium payment benefits.
Policy benchmarking is the primary springboard to achieving a more competitive profile in your market, greater success in managing your mobile population, and ultimately, better financial results for your organization.
PwC's quarterly analysis of global merger and acquisition (M&A) activity in the aerospace & defense (A&D) industry provides an overview of Q2 M&A results, significant drivers of these results, and expectations of deal activity in future quarters. Overall activity in the sector recovered during the second quarter of the year, after a lackluster first quarter. Additionally, US participation in M&A decreased and the balance of deal making shifted more toward emerging markets, in particular the BRICs.
August 2012 - On July 9, 2012, the Consumer Financial Protection Bureau issued two Notices of Proposed Rulemaking to implement key residential mortgage reforms of the Dodd-Frank Act. We briefly describe these proposals – which total almost 1400 pages combined.
Successful deal making requires a focus on the relationship between risk and return but potential blind spots can affect the expected value from an acquisition. This publication discusses how enhanced diligence on valuation issues can improve the price assessment against intrinsic value and reduce the risk of overpaying for targets.
Successful deal making requires a focus on the relationship between risk and return but potential blind spots can affect the expected value from an acquisition. This publication discusses how enhanced diligence on valuation issues can improve the price assessment against intrinsic value and reduce the risk of overpaying for targets.
With an asset and working capital intense environment, the ability of companies to react to a changing demand is paramount for continued growth and customer satisfaction. PwC has identified opportunities to incorporate leading practices into commercial aviation spares forecasting.
The data from the 2012 edition of the survey to help identify correlations between Project Management (PM) and organizational success within five key performance indicators (delivering projects on time, within budget, to scope, to quality standards, and with the intended business benefits).
This FS Regulatory Brief discusses the registration deadline issue in broad terms. It explores the ramifications that different dealer registration deadlines will have on sell- and buy-side firms, including on the start of swap data reporting. Additionally, there are updated timelines showing the key compliance dates for US swap dealers and foreign swap dealers.
Organizations that use project portfolio management (PPM) for capital budgeting may be surprised to learn how their efforts are falling short of true optimization. PwC's online diagnostic survey tests your Project Portfolio Optimization "maturity level" by benchmarking your approach to project prioritization and capital deployment against winning practices. Complete the diagnostic to receive ideas on how you may be able to deploy capital more efficiently.
What are the recent investment trends and opportunities in global healthcare markets and what regions are likely to draw future merger and acquisition activity? Our 2Q 2012 edition focuses on the rapid pace of M&A activity in the key healthcare M&A emerging markets of Brazil and China.
This PwC paper discusses the recent reform and how the banking industry is responding − via recapitalisation, restructuring, reform, etc − as well as renewing their strategies with the investors, communities and customers they serve.
This report highlights shortcomings in the practices of the Private Student Lending (PSL) industry leading up to the 2008 financial crisis and changes since then. PSL lenders are encouraged to focus on better underwriting, loss mitigation options, and increasing transparency.
Sponsors of insured group health plans may soon be receiving rebates of premiums paid in 2011 from the plan's insurance carrier as required under healthcare reform. To the extent that employees are entitled to all or a portion of the rebates, employers must also determine the appropriate tax treatment for any resultant cash rebates or premium holidays provided to employees. The rules give employers flexibility in deciding how to use the rebate attributable to participant contributions -- to provide a premium holiday or pay it directly to participants.
As Europe continues to grapple with sovereign debt problems, austerity measures, and recession, the Eurozone is changing and will likely emerge from the ongoing crisis looking quite different from the one we know today. Because the world is so interconnected, virtually every company will be affected and needs to figure out the impact on their companies worldwide - from strategy and operations to execution - and start preparing now.
Beginning in 2013, an additional 0.9% Medicare tax is imposed on individuals who receive wages over $200,000 ($250,000 in the case of a joint return, or $125,000 in the case of a married taxpayer filing separately). When added to the current 1.45% employee portion of the Medicare tax, a high-income taxpayer's wages will be subject to a 2.35% Medicare tax on wages above the threshold.
PwC's Mobile Innovations Forecast a four-part framework for analyzing and understanding mobile innovation using enabling technologies, new technological capabilities, new use cases and new business models.
July 2012 - As a part of a global initiative to help prevent a repeat of the 2008 financial crisis and reduce the threat posed by global systemically important financial institutions, the International Association of Insurance Supervisors has released its proposed assessment methodology for the identification of global systemically important insurers.
Companies need to protect the integrity of their supply chains to avoid damage to their reputations. In this report, we outline strategies for environmental and social issues in the supply chain. A resilient supply chain requires combining both ‘play not to lose’ and ‘play to win’ strategies.
Telecom operators continue to upgrade their network technologies to meet consumer demand while maintaining multiple generations of different technologies. A PwC study found that many have begun to decommission legacy networks or are working on such a strategy.
Food Safety Modernization Act (FSMA) is broad, upon full implementation, it will effectively require food companies to possess the capability to track ingredients and to verify production processes as items pass through the value chain from field and farm to final consumer. FSMA, the bill expands the FDA’s focus from responding to outbreaks after-the-fact to preventing them before they happen. It allows the FDA oversight on how foods are grown, harvested, and processed and grants the agency new authority to issue mandatory recalls when outbreaks of food-borne illness are suspected.
US hedge funds have enhanced transparency, controls and infrastructure, gaining the trust of institutional investors. Across the hedge fund value chain, a new framework is emerging that is improving investor protection that is still in process.
PwC believes that the traditional methods employed to value intangible E&M assets — while still valid — may ultimately need to evolve in the interest of improved reporting. This new publication, Why Entertainment and Media companies should reassess asset valuation in the Digital Age, discusses some timely valuation issues for E&M companies
The continued decline in traditional mergers and acquisitions in the technology industry supports the trend of consortium-based minority investments and patent acquisitions. Deal activity will continue to be driven by divestitures and focusing on core business revenue generators.
PwC believes that the traditional methods employed to value intangible E&M assets — while still valid — may ultimately need to evolve in the interest of improved reporting. This new publication, Why Entertainment and Media companies should reassess asset valuation in the Digital Age, discusses some timely valuation issues for E&M companies
July 2012 - The three federal banking agencies released three notices of proposed rulemaking that will revise regulatory capital rules for US banking organizations and align them with the Basel III capital standards that were issued in December 2010 and subsequently updated in 2011 (Basel III).
This PwC publication tracks the business issues and best practices of privately held US growth businesses. It incorporates the views of 240 chief executive officers (CEOs/CFOs): 135 from companies in the product sector and 105 in the service sector, averaging $352 million in enterprise revenue/sales, and including large, $500M-plus private companies.
Leading organizations are utilizing human capital metrics, surveys, and predictive analytics to bring workforce insights out of the shadows and to draw a vivid profile of everything from workforce trends, patterns, and motivations to operational and HR cost drivers and organizational assets. Today's expectations are high. But HR today has access to a suite of analytical tools like never before - analyses that can help us enable our enterprise assets and inform the C-suite with high-performance, high-level, and highly effective perspectives and insights. In this edition of HR Innovation, we'll take you on a journey through the ins and outs of workforce analytics and give you a good view into the challenges and triumphs that await..
While uncertainty over the global economic environment and volatile equity markets significantly slowed U.S. deal volume earlier in the year, an uptick in activity during the end of the second quarter, in conjunction with an active pipeline, indicates the M&A market is regaining momentum, according to PwC US.
The CFTC and SEC released final definitions of what is a 'swap' or 'security-based swap' under the Dodd-Frank Act. This FS Regulatory Brief discusses the projected timing for swap dealers (and major swap participants) to comply with the CFTC's regulation of swaps.
The second quarter 2012 'Current Accounting and Reporting Developments' webcast held on June 20, 2012 included a discussion by PwC's Don Keller on key considerations related to bribery and corruption issues in companies. This segment of the webcast is now available for podcast download.
July 2012 - On June 29, 2012, the CFTC released its much anticipated proposed cross-border guidance to interpret when Dodd-Frank Act derivatives regulations reach beyond US shores. It also released a proposed exemptive order that would grant temporary relief from compliance dates for certain regulations.
Congress has passed the Moving Ahead for Progress in the 21st Century Act ("MAP-21"), funding highway transportation projects and extending student loan interest rates. Significant changes for employer-sponsored defined benefit pension plans are included in the legislation as revenue raisers.
Following very healthy levels of IPO activity during the first five months of the year, the number of IPO pricings slowed in mid-May, according to PwC US. Overall, the number of U.S. IPOs in the second quarter of 2012 declined to 27, from 44 in the first quarter.
In this series of white papers, PwC and faculty at Wharton focus on how CFOs can build topperforming finance teams. Topics include attracting and motivating the right talent; leveraging all parts of the finance organization; and what it means to be a high-performance CFO today.
Consolidation in banking, insurance, and asset management impact profitability and drive the need for scale while economic risk is high. Alternative approaches are available for buyers and sellers in all deal environments.
The Financial Performance Report from PwC and the Grocery Manufacturers Association provides benchmarking information for more than 100 food and beverage product manufacturers, over 60 retailers, and gives insights on the demand chain where future investment will be needed.
More than 40 senior executives and experts from 14 different countries gathered in May 2012 in Rome, Italy for PwC’s roundtable on the enterprise asset management (EAM) challenges facing power and utilities companies. Participants were drawn from different parts of the gas and electricity industry as well as from PwC. Our report summarises the discussions during the event.
June 2012 - This PwC FS Regulatory Brief is a summary of the changes made by Dodd-Frank to bank affiliate transaction rules, the status of regulatory efforts, what banks can do to assess its impact and related issues.
As businesses gear up for growth, many find they are hobbled by inadequate portfolio management (PM) practices and resources. Some businesses, for instance, invest significant capital spending on programs and portfolios that do not directly align with strategic corporate objectives. Others struggle to balance risk with the opportunities required to achieve these objectives.
In Ronald Tussey v. ABB, Inc., the US District Court for the Western District of Missouri ruled against a plan sponsor, the plan committees and members and the plans' trustee and administrator for breaching their fiduciary duties toward the plan participants by not monitoring recordkeeping costs, failing to negotiate rebates for the plan, and other fiduciary breaches. The plaintiffs were awarded damages of $35.2 million (on plan assets of approximately $1.4 billion).
For private banks in China, managing and deploying talent causes retention problems and increases the demand for outside hiring of both experienced and entry-level talent. The ability for private banks in China to expand their client base depends in part on an organization's flexibility to meet differing client needs based on demographics, wealth tier, and preferences. Equally important is developing a team-based approach to building relationships with heirs and building close relationships with the next generation.
The IRS recently released Notice 2012-40 providing guidance regarding implementation of the new $2,500 annual limit on employees' elective salary reduction contributions to healthcare flexible spending arrangements, which was added to the Code by the Affordable Care Act of 2010. For more information, read this edition of HRS insight.
The global mining industry is facing a growing disconnect as despite record profits for the world’s 40 biggest miners in 2011 thanks to high commodity prices, investors proved fickle, demanding greater capital discipline and increased shareholder returns.
This edition of PwC's quarterly analysis of global M&A activity in the transportation & logistics industry reveals that the number of deals announced during the first quarter is on par with the previous quarter; however there has been a big jump in total and average deal values. This is mainly due to five mega-deals announced this quarter, defined as announcements with a disclosed value of at least $1 billion. There were 11 total mega-deals announced last year.
What are the recent investment trends and opportunities in global healthcare markets and what regions are likely to draw future merger and acquisition activity? Our 1Q 2012 edition focuses on investments in the evolving global hospital sector. Global deals activity has gotten off to a slow start in 2012, with softer volumes and smaller deal sizes reflecting continued economic uncertainty in global markets.
As advanced economies continue to limp out of the global recession, Southeast Asia is a rising star of the global market. The region is led by its five fastest-growing countries: Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.
PwC is pleased to announce the availability of our 2012 Health and Well-Being Touchstone survey. The 2012 survey data contains detailed benefits information provided by approximately 1400 participating companies in 34 different industries across the nation.
Traditional revenue generators are not growing to overcome new capital and regulatory requirements. Financial institutions are implementing continuous expense management programs to focus on efficiency in budgeting and reporting systems.
PwC's quarterly update discusses how technology businesses continue to lead other sectors in US merger and acquisition activity, generating $28.9 billion of deal value in the quarter despite lower deal volume. Innovation and time to market will continue to fuel technology deals as companies race to stay ahead of their competitors.
May 2012 - This FS Regulatory brief provides important information to assist hedge fund and private equity fund advisers in understanding the general risks around expense practices, and creating and maintaining a sound control framework to address those risks.
PwC's quarterly analysis of global merger and acquisition (M&A) activity in the aerospace & defense (A&D) industry reports that deal activity slowed this quarter from the robust level of 2011. While the overall level of deals declined significantly, we believe that there are a multitude of potential drivers of M&A activity in 2012 that could lead to an increase in deal activity for the remainder of the year.
Healthcare spending in the United States is expected to grow at a historically low rate of 7.5 percent next year, according to the annual Behind the numbers report on medical cost trend, published by PwC Health Research Institute. More than half of the employers surveyed are considering increasing employees' share of health benefit cost and expanding health and wellness programs in 2013.
Private companies' optimism about the US and world economies took another steep dive, reaching levels not seen since the early days of the recession. This time, however, uncertainty prevails, with roughly half of Trendsetter executives voicing that sentiment, compared with about one-quarter voicing outright pessimism, and revenue projections remain strong.
PwC's quarterly analysis of global M&A activity in the industrial manufacturing industry reports that in this quarter deal totals remain subdued with fears of the direction of global manufacturing. At the same time, the US leads the activity as companies pull out of Europe and China's manufacturing growth slows.
As companies embrace globalization, technology, and competitive pressures, local labor markets are rapidly evolving and changing—and the skill shortages are pushing human resources into the front lines of acquiring, developing, and retaining talent.
May 2012 - The Federal Reserve Board of Governors released a policy statement intending to clarify expectations for covered banking entities regarding the Volcker Rule. What constitutes “good faith” efforts toward compliance is unclear. The largest banks have been undertaking a “good faith” approach to Volcker since the passage of Dodd-Frank.
Companies with a global footprint, especially those expanding into new and unfamiliar territories, would be remiss if anti-corruption compliance wasn’t moved closer to the top of their priority list. The elements of a successful anti-corruption strategy start with a corporate-wide framework which should evaluate and address all of the entity's vulnerabilities. It is essential that a risk assessment be performed to identify areas of potential risk -- in all geographic regions, industry sectors, and lines of business.
PwC's analysis of global M&A activity in the chemicals industryreports that volume and value of deal activity fell steeply this quarter, continuing a decline that began in the second half of 2011. Responding to concerns over poor first quarter earnings, companies may have shied away from deals to streamline operations and jumpstart earnings growth through organic means.
Engineering growth is a quarterly analysis of global merger and acquisition (M&A) activity in the engineering and construction industry. Our analysis reveals that the high level of uncertainty stemming from the European sovereign crisis, the slowdown in China’s growth, and the sluggish US economy took a toll on E&C deal activity during the second quarter.
April 2012 - In this A Closer Look, we review and analyze the Federal Reserve Board's new standards for systemically important financial institutions (SIFIs) that introduce a single counterparty exposure (concentration) limit.
This report summarizes findings from a survey of Midwest energy customers on how they use energy, how smart grid technology will affect their everyday lives, and how much they expect to embrace new products and services related to the smart grid during the next few years.
Forecasts predict the federal student loan default rate, reported by the Department of Education, will reach double digits in 2012, with no relief in sight. By understanding the causes of why student lending default continues to rise, default managers can work to insulate themselves against this trend.
AutoDesk, Cisco Systems, Facebook, General Electric, IBM, Johnson Controls, Microsoft, General Motors, PG&E, Boeing, CBRE, FedEx, Ford, and Jones Lang LaSalle talk to PwC about their roles in accelerating efficiency in our energy, information, building and transportation systems. Stressing the importance of systems thinking, collaboration skills, and innovation capabilities needed for growth, these companies are capitalizing on both technology change and business model innovation to achieve breakthroughs in business and environmental performance.
In this PwC podast, Phil Samson discusses the importance of a business continuity strategy and how an organization can prepare all aspects of the business - people, processes and technology - to withstand an unexpected business disruption.
Companies preparing to go public often face a number of issues related to their financial statements. A common issue is whether push-down accounting should be applied. Push-down accounting is the practice of adjusting the standalone financial statements of an acquired company to reflect the basis of accounting of the buyer. This edition of Mergers & acquisitions - a snapshot, provides an overview of the SEC's rules on push-down accounting and a high-level summary of the complexities and opportunities that can arise in applying the rules to common deal structures.
These PwC papers discuss ways of aligning business and talent management strategy as it relates new employees entering the workplace – the generation known as millennials. These publications look at how their unique characteristics demand an innovative approach to recruitment, retention, management and development.
Internet advertising revenues climbed 14 percent year-over-year—to an all-time high of $17 billion—in the first half of 2012 as compared to $14.9 billion in 2011. Among the biggest drivers of this growth is Mobile which almost doubled year-over-year figures – up 95 percent to $1.2 billion in half-year 2012 from $636 million in 2011.
The asset management industry faces challenging markets, regulatory reform, competition for clients and talent, and new expectations from investors, regulators, industry partners and other stakeholders. In spite of these challenges, the asset management industry is positioned for future growth.
Traditional Federal and local government cost reduction approaches often fail to achieve the targeted reductions, take longer than anticipated, and allow costs to creep back to historic levels. Disciplined cost management is critical in achieving transparency and accountability.
Cultural integration and communication issues are top factors that challenge M&A success. Successful organizations see the strategic value in communicating with employees before, during and after and organizational transition.
Amid the recent launch of music, photo, and video content services, consumers appear to be more informed about digital lockers yet still lack a strong understanding of the benefits of digital lockers or the rights that come with ownership. This report includes quantitative findings from an online survey of 502 participants and findings from a number of focus groups where PwC explored consumers' awareness, interest and engagement with digital content storage, including their willingness to pay for it.
The fifth volume of the T&L 2030 series is a multi-faceted analysis of talent management in the transportation and logistics industry worldwide. It also contains strategies to help transportation and logistics companies improve their talent management.
Technology sector merger and acquisition activity deal value increased despite a drop in deal volume. Tech sector executives will look for acquisitions to distinguish their companies from the competition.
This financial services sector analysis of PwC's 2011 Global Economic Crime Survey examines the current fraud landscape, taking a close look at who is committing economic crime, what new types of fraud are emerging and how they can be addressed.
This paper will share some of the lessons learned about third party due diligence programs in order to help you grow your business. We discuss 20 common points that can help bridge the gap between an ideal compliance setting and the real world.
This paper will discuss many of the leading global due diligence drivers and look at the regulatory landscape to help you design a compliance program that complies with worldwide, as well as local, regulations.
PwC's 2011 US Asset Management Reward and Talent Management Survey gives human resource leaders insight into emerging trends and best practices in talent acquisition and retention. Volatile financial markets, minimal M&A activity, global regulatory reform and greater investor scrutiny continued to pressure asset managers, HR leaders are redesigning incentive and governance structures to support evolving business objectives and grow their human capital base.
Aerospace and defense executives should increase their value chain visibility, manage demand variability and increase velocity increase profitability. Seeing and managing can improve the cost structure and schedule of any program.
Allocating scarce public monies to the projects that yield the best return for taxpayer investment is especially critical today. A PwC survey of five countries illustrates how transportation investment frameworks can help prioritize projects and measure performance.
Executive compensation has come under increasing scrutiny in the media, by institutional shareholder groups, regulatory agencies, such as the IRS and SEC, and Congress. In this climate of increased transparency and disclosure, the IRS has stepped up its audit activity.
The supply chain is key for utility company cost reduction, but an industry-wide review of material logistics practices finds that some utilities have a method to improve their supply chains with little additional effort.
A review of investor research reveal a trend that more investors are using corporate sustainability reporting to inform investment strategies. Sustainable investing outpaces the growth rate of conventional investment assets under professional management.
With one half of health industry executives saying they are concerned about how to integrate social media data into their business strategy there is a recognition social media presents a significant industry challenge.
Power grid modernization requires updates to power companies’ technology, people, and processes and a time when power company CIOs are being asked to contain IT spending. Adoption of demand based IT will enable power companies to achieve operational and cost efficiencies.
Environmental, social and governance (ESG) issues in the private equity industry are increasingly in the spotlight. But many PE houses are struggling with how to demonstrate the value of their ESG activity.
March 2012 - The CFTC amended rules to require private fund managers and SEC-registered investment companies with more than 5% of their portfolio holdings in commodity interests to register with the CFTC. The CFTC also proposed 'harmonization' rules to ease dual compliance with the SEC and CFTC.
2011 was the worst year in global asset management mergers and acquisitions in five years. European bank divestitures, continuing improvement in valuations and strong buyer interest should improve in 2012. Competition for growth is increasing and continuing uncertainty could make managing performance difficult.
In this podcast, PwC Assurance senior manager Liz Pelan discusses an overview of emerging markets debt and distressed debt. The overview includes the definition of emerging markets debt, types of distressed debt and valuation concepts.
Amid ever-changing deal dynamics and market conditions, transaction preparation and value generation are more important than ever. Successful corporate divestitures now demand diligent preparation. Sellers must understand all aspects of their business and address issues in advance to speed up the sales process and preserve value. Following a few guiding principles when preparing for a sale will assist sellers in successfully exiting their business in a shorter timeframe and effectively optimize sale value.
The recent trend toward separation or break-up of businesses, with a view to unlocking value or focusing on higher growth opportunities, has brought divestiture strategy and execution back into focus. An interactive roundtable of corporate business development executives discussed themes on divestitures such as: the basis for divestment decisions; structures; buyers; planning and preparation; speed vs control and key housekeeping matters to consider. A consensus was reached on the top considerations for successful divestitures.
The Departments of Treasury, Labor and Health and Human Services have released final rules regarding the summary of benefits and coverage required to be provided by health insurance issuers and group health plans under the Patient Protection and Affordable Care Act ("PPACA"). For more, read this edition of HRS insight.
Aerospace and defence manufacturers face potential supply chain issues as they ramp up production of large civil and military projects. Recent analysis on the A&D supply chain indicate that one-fifth of suppliers are not financially prepared to support the anticipated production increases.
Tablet demand will surge to 200 million by 2014. The market has seen a proliferation of new devices. Companies will need a differentiating customer service and repair model in addition to flashy products to succeed in this rapidly rising market.
Companies that have then taken the step to “rationalize” their operational footprints have managed to rein in excessive costs, but frequently have ended up unable to adapt quickly to changes in the business landscape. The existing operational footprint makes it difficult to respond in ways that will benefit the bottom line. As the business world becomes more interconnected, companies with intelligent and resilient operational footprint will be able to effectively compete.
The DOE’s Smart Grid grants have funded projects have created jobs while protecting the environment. Power and utility companies experience challenges in navigating the compliance requirements associated with the grants
Life insurers started feeling the effects of low interest rates on their sales, revenue, profitability, and company valuations in 2011, and the trend is expected to continue in 2012. Strategic options are available to help insurance companies manage through this period of decline.
PwC provides insights on how people and workforce factors impact successful deals and mergers. We surveyed senior management from large capital and middle market US companies that had completed a merger or acquisition in the previous three years.
Can bail-in capital bail out the banking industry? Bail-in capital is central to the regulatory reform of banks, and can help to restore confidence in the industry. The Basel Committee on Banking Supervision has announced that all non-core equity capital instruments would have to have a bail-in feature from January 1, 2013. This PwC publication examines the challenges and practical issues that need to be addressed before bail-in capital can become a reality.
This study explores how to reduce the chances of pre- and post-deal problems. It shows how to avoid doing bad deals, how to successfully complete on good deals, and how to make sure a good deal doesn’t turn bad after the deal trophy is on the shelf.
This PwC publication tracks the business issues and best practices of privately held US growth businesses. This edition reports that most private companies expect positive growth, and the majority plan an upswing in hiring. Despite ongoing ambivalence about the economy, leading US private companies are not sitting on their hands. Planned major capital investments and increased operational spending remain solid, proving especially strong among Trendsetter companies active in emerging markets.
As Asia Pacific economies continue their rapid growth and become more deeply integrated, multinational companies are changing how they're expanding in the region for the long-haul--from setting up regional hubs and distribution networks, to developing local talent, to building brand loyalty amongst the region's rapidly growing number of middle class consumers.
The IRS has provided guidance on reporting the value of employer-provided health care, which will be required to be provided to employees for the first time on 2012 Forms W-2, generally required to be furnished to employees by the end of January 2013. All employers are generally required to report, but the IRS has provided some exemptions. PwC explains how such employers are not required to report the value of employer-provided health care for 2012 in this edition of HRS insight.
Many power and utility companies have an aging workforce that creates operational risk, but they are challenged with how to best address changes within their organizations. A workforce survey by PwC reveals how leading power and utility companies are addressing change in leadership development, performance measurement, organizational realignment, and the role of human resources in supporting the business strategy.
Determining whether an acquired group of assets is a business has proven to be one of the more challenging aspects of applying the current M&A accounting guidance. For many transactions, the determination will be straightforward. However, the current guidance will cause many transactions that are "on the edge," and previously would have been accounted for as asset acquisitions, to be accounted for as business combinations. This edition identifies relevant considerations in determining whether a business has been acquired and why it matters not only upon acquisition but also for disposals and public company reporting.
In a business combination, buyers are required to record the acquired assets and assumed liabilities of a business at their fair values. Fair value reflects the price that market participants would receive to sell an asset or pay to transfer a liability. Assets and liabilities may be used differently by different market participants, resulting in variations in values. Therefore, a market participant's view is an important aspect of the valuation process as a buyer cannot look only to its own intended use of an asset or its ability to transfer a liability at a certain price. This publication provides insight on the identification of market participants, as well as how entities can develop market participant assumptions.
An integrated approach to managing risk and business performance can help companies systematically link risk and reward to avoid the pitfalls of operating in a volatile global economy. Listen to Joe Atkinson, Leader of PwC's US Risk practice, to learn about the 5 stages for truly integrating risk and performance to achieve risk resilience in your organization.
M&A in China is booming - both inbound and outbound deals. In this PwC podcast, listen to Alan Chu, China Business Services Leader (US), Curt Moldenhauer, Transaction Services partner (Shanghai) and Malcolm MacDonald, Transaction Services partner (Beijing) discuss some of the opportunities and challenges they see their clients facing, and more importantly, how to navigate around the issues associated with doing deals with China.
In today's challenging environment, tech companies continue to seek ways to build revenues while cutting costs. With these goals in mind, globalization has become an increasingly attractive strategy. But in their desire to reach short-term goals are technology companies effectively utilizing globalization to achieve their long-term growth strategy? These PwC podcasts are part of a series of reports for executives in the technology industries.
The M&A Standards changed how a parent reports the minority shareholder interests in a partially owned subsidiary in its consolidated financial statements. The minority shareholder interests, or noncontrolling interests (''NCI''), are generally presented within equity as if the parent and the minority shareholders have similar economic interests. Previously, NCI were generally presented between liabilities and equity (''mezzanine equity''). This edition focuses on the classification of redeemable NCI and how different minority shareholder rights may lead to different financial reporting by the parent.
In many M&A transactions, companies looking to dispose of non-core businesses or to generate cash may sell only a portion of their operations (e.g., a subsidiary or a business unit). As part of these transactions, a seller may need, or want, to prepare separate financial statements of the operations being sold, commonly referred to as carve-out financial statements. The preparation of these financial statements can be challenging as there is limited guidance covering their composition. This volume of Mergers & Acquisitions - A snapshot, focuses on some of the issues companies may face when preparing carve-out financial statements, how those statements may differ from their own financial statements, and how the M&A Standards may impact...
FASB Accounting Standard Codification Topic 810 incorporates FAS 167, Amendments to FASB Interpretation No. 46(R)), which is the U.S. standard on consolidation (the Consolidation Standard). The Consolidation Standard is effective as of January 1, 2010 for calendar year end companies and the impact will soon be reported in the first quarter reporting cycle. As a result of applying the new guidance, certain entities may need to be consolidated while other entities may need to be deconsolidated. Determining who consolidates is just the beginning.
In many M&A transactions, when the buyer and seller cannot agree on the total purchase price in an acquisition, the two parties agree to an additional payment, or contingent consideration, based on the outcome of future events. These payments are commonly referred to as earnouts and are typically based on revenue or earnings targets that the acquired company must meet after the acquisition date. The accounting for these arrangements under the M&A Standards represents a significant change from past practice.
In many M&A transactions, a buyer may acquire assets it does not intend to use. Prior to the M&A Standards, buyers generally would assign little or no value to assets that are not intended to be used when accounting for an M&A transaction. Now, such assets are required to be recognized at fair value from a market participant perspective, even if that perspective differs from that of the actual buyer. One common type of asset that a buyer does not intend to actively use that is receiving considerable attention is called a "defensive asset."
Accounting for partial acquisitions and disposals - it's not so simple! In an economic environment where many companies are buying and selling portions of businesses, the M&A Standards will have an impact on how companies account for these types of transactions. At first glance, the fundamental concept of "control" that drives the accounting seems easy to understand. If a company gains control, the acquisition is a business combination. If a company loses control, it deconsolidates the subsidiary. If a company maintains control, the transaction is recorded in equity. Simple, right? Not so fast!
Doing a deal? How will you compensate employees of the target? The new M&A Standards may impact your decision. Determining whether employee arrangements represent compensation for service prior to and/or after the acquisition will have a direct impact on the amount included as purchase price versus the amount expensed in the future. This installment of Mergers & Acquisitions - A snapshot explores some of the more common issues related to employee compensation arrangements typically seen in business combinations... contingent consideration, golden parachutes and stay bonuses, and exchanges of stock compensation awards. Employee compensation decisions agreed upon during deal negotiations could impact the acquirer's future financial results.
Are you ready for volatility in your effective tax rate? The new M&A standards will likely impact a company's effective tax rate. This impact will be felt by acquisitive companies in all industries, public and private, and as early as the first quarter of 2009 because parts of the new M&A standards apply to prior acquisitions. This installment of Mergers & Acquisitions—A snapshot focuses on how the accounting for merger and acquisition transactions will create volatility in an acquirer's effective tax rate in periods before and after an acquisition.
Did you know that the new M&A standards could impact your company regardless of whether you plan to close a deal? Given the current economic environment, understanding the new M&A standards may not be a priority for many companies, particularly if M&A activity is not on the horizon in the foreseeable future. However, companies should be careful not to overlook the new M&A standards, as they may have a significant impact, even without a deal. This installment of Mergers & Acquisitions - A snapshot will help you avoid last-minute surprises by understanding how the new accounting and reporting standards for M&A may affect your financial reporting even though you haven’t closed a deal.
Since the adoption of FAS 142, the goodwill impairment standard, the equity markets have generally trended upward. Accordingly, impairments may not have been as frequent as we expect to see them today. This edition of Mergers & Acquisitions - A snapshot, focuses on some of the issues companies may face in preparing goodwill impairment tests in the current environment. It also serves as a refresher on certain aspects of the framework for conducting those tests.
Recognizing that the new standards affecting mergers and acquisitions — FAS 141(R) and FAS 160 — will dramatically change the way companies negotiate and account for M&A, PwC has launched the first in a series of publications that will help companies keep abreast of emerging issues resulting from the new standards, as well as provide them with ideas on modifying current strategies and employing new ones for future deals. This first installment of Mergers & Acquisitions - A snapshot focuses on how the accounting treatment for M&A transactions will depend considerably on whether the deal closes before or after the effective date of the new standards.