Accounting for Cryptocurrency and Digital Assets: New FASB Guidance, Financial Reporting and Disclosures

This webinar will explain recording the receipt, disposition, and financial reporting aspects of digital assets, including cryptocurrency, for accountants and auditors. Our panel of accounting and audit experts will provide recommendations for accounting for these assets that are quickly becoming commonplace.

Many businesses believe they must accept cryptocurrency to remain competitive. Others have purchased cryptocurrency or NFTs (non-fungible tokens) as investments. Reporting digital transactions is complicated by the varying nature of these assets, how they are held and used by businesses, and the lack of substantial authoritative guidance on accounting for their existence.

In an effort to resolve these issues, on Oct. 12, 2022, the FASB issued a recommendation that said cryptocurrencies should be reported at fair value. This reflects the use of cryptocurrency by investors and aligns its reporting with other financial assets. For practitioners, this means these investments would be reported in accordance with guidelines in Topic 820, Fair Value Measurement.

The announcement resolves some issues and leaves many others unresolved. Only specific cryptocurrency is covered under the new guidelines; NFTs, for example, are not addressed. Likewise, financial statement presentation and required disclosures have not been covered. Accounting and auditing professionals need to stay abreast of the latest developments and guidelines.

Listen as our panel of accounting, audit, and valuation experts discusses what is known and not known, as well as best practices for companies handling digital assets.