Share repurchases – The type of arrangement matters

PwC's accounting podcast

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We kick off our miniseries on accounting for financing transactions with a focus on share repurchases. We provide an overview of the different methods and reasons companies may repurchase their own shares as well as the accounting implications. Spoiler alert – the type of arrangement really matters as it dictates the accounting.
In this episode, we discuss:

• 3:38 – An overview of the different methods and reasons companies repurchase shares
• 11:43 – Accounting implications depending on the method of repurchase:
  • 11:55 – Spot repurchases
  • 15:07 – 10B5-1 plans
  • 16:26 – Forward repurchases
  • 18:56 – Prepaid repurchases
  • 20:30 – Tender offers
  • 24:08 – Accelerated share repurchases
• 30:40 – Accounting for treasury stock

For more information on these topics, read chapter 9 of our Financing transactions guide. Additionally, follow this podcast on your favorite podcast app for more episodes.
John Horan is a managing director in PwC’s National Office where he assists clients with complex accounting issues in the areas of foreign currency, liabilities and equity, earnings per share, and derivatives and hedging. John specializes in large capital transactions and initial public offerings.
Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series.
Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [e-mail].

Chapters

1. An overview of the different methods and reasons companies repurchase shares (00:03:38)

2. Accounting implications depending on the method of repurchase: (00:11:43)

3. Spot repurchases (00:11:55)

4. 10B5-1 plans (00:15:07)

5. Forward repurchases (00:16:26)

6. Prepaid repurchases (00:18:56)

7. Tender offers (00:20:30)

8. Accelerated share repurchases (00:24:08)

9. Accounting for treasury stock (00:30:40)