The Future of Digital Assets
Are Counting on
Updated Accounting Standards
The Future of Digital Assets Are Counting on Updated Accounting Standards
By Paul Brigner, Director of Technology Policy
The Chamber regularly advocates for updated legal and regulatory frameworks for digital assets, so it should be no surprise that we are also in support of updated accounting standards. As we look to the future, the potential for digital assets is enormous with major corporations starting to invest in them and even accept them as a form of payment. However, in order for digital assets to truly become mainstream, businesses, their accountants and even consumers need better guidelines on how to account for their digital assets. To address this need, the Chamber’s Digital Assets Accounting Consortium (DAAC) has been focused on advocating for the development of accounting and reporting standards for digital assets.
About two years ago, DAAC asked the Financial Accounting Standards Board (FASB) to address accounting for cryptocurrencies, and we have continued to engage on this issue with relevant standard-setting bodies. On May 15, the Chamber submitted comments in response to the International Financial Reporting Standards (IFRS) Interpretations Committee tentative agenda decision on Holdings of Cryptocurrencies published in the March 2019 IFRIC Update.
Our comments were informed by results from a recent industry survey conducted by DAAC as well as a set of use cases that demonstrate the various ways in which cryptocurrencies can be held and used in different situations, thus impacting their accounting treatment. Based on our survey results, use cases, and member feedback, our position is that IFRS should allow for different methods of accounting depending on the intent and use of the crypto asset. For example, these methods should include the option to apply the relevant IFRS accounting standards for investments, inventory, and intangibles. Read our full comments for more detail.
Accounting standards are of paramount importance for the blockchain industry and an indispensable resource for accounting professionals who are lacking guidance on how to properly account for holdings of cryptocurrencies. As such, we are counting on IFRS, FASB, and other standard-setting bodies to set appropriate accounting standards that recognize the various uses of digital assets.
Visit the DAAC page on the Chamber’s website and learn more about how you can get involved.