Fair Value Measurement to be Applied to Digital Assets (Cryptos) Under US GAAP
TLDR On October 12, 2022, the FASB (Financial Accounting Standards Board) unanimously voted to require companies to measure crypto at their fair value at the end of each reporting period. The discussions can be seen here: Crypto Accounting Under Current US GAAP In December 2019, the AICPA (American Institute of Certified Public Accountants) released […]
SEC Releases SAB121 – US GAAP Accounting For Assets Held in Custody of Customers by Crypto Exchanges
Background On March 31, 2022, the SEC released Staff Accounting Bulletin No. 121 (SAB 121). This SAB expresses the view of the SEC staff regarding the accounting treatment for crypto-assets that are reporting entity safeguards for its platform users (customer crypto-assets). Exchanges that are responsible for safeguarding customer crypto-assets should present a liability on its […]
Why US Public Companies are Starting to Acquire Bitcoin
Technological Evolution, Macroeconomic Uncertainty, and Accounting Standards Publicly traded companies holding part of their reserves in bitcoin to protect their purchasing power. What was a fantasy a few years ago is becoming a reality. Two huge news stories have come in the past few months. MicroStrategy Taking the Lead It all began with MicroStrategy Inc. (MSTR), […]
AICPA Releases Accounting Guidance on Digital Assets (Cryptos)
Significant differences with J GAAP, already causing GAAP differences between the two standards In December 2019, the AICPA (American Institute of Certified Public Accountants) released a guidance on the accounting of crypto currencies. This nonauthoritative guidance was released as a practice aid titled “Accounting for and Auditing of Digital Assets”. You can download the original […]
Crypto Accounting Standard
Crypto Accounting Standard PITF No. 38 Practical Solution on the Accounting for Virtual Currencies under the Payment Services Act World’s First Crypto Accounting Standard? On March 14, 2018, the ASBJ (Accounting Standards Board of Japan) issued PITF (Practical Issues Task Force) No. 38 “Practical Solution on the Accounting for Virtual Currencies under the Payment Services […]
