This week we have a special episode focused on the FASB’s new guidance related to contract assets and contract liabilities (i.e., deferred revenue) acquired in a business combination (ASU 2021-08). Host Heather Horn is joined by Andreas Ohl and Jay Seliber, PwC National Office partners, to talk about key changes and considerations in the new rules, and the timing of adoption. Topics include:1:19 - Background. Jay and Andreas begin by discussing the scope of the newly-issued guidance, and the reasons why the rules are changing. 6:45 - Overview of application. Jay and Andreas provide more specifics on the application of the new guidance, including some important changes from existing GAAP, and why the amounts to record under the new standard won’t in some cases just be a carryover of the target’s balances.19:43 - A reminder about valuations. Jay and Andreas explain how valuations of intangible and other assets will - and won’t - be affected by the new guidance.22:23 - Key impact areas. Jay and Andreas take us through some of the most significant ways the new standard is expected to impact companies in the periods after a business combination.28:26 - Effective date and transition. What’s the timing and method of adoption? Jay and Andreas wrap up with an overview of the effective date and transition aspects of the new guidance, along with key elements to carefully consider before simply jumping into the new standard. Heather tries to stump Jay and Andreas with some niche accounting questions.Want to learn more? Read our In depth: Accounting for acquired contract assets and contract liabilities.Andreas Ohl is a partner in PwC's National Office focused on thought leadership, standard setting, and mergers and acquisitions under US GAAP and IFRS. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's in-process R&D guide, and has served as a member of the FASB's Valuation Resource Group.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. 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, as well as periodic webcasts for the power and utilities industry. 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.