Naomi Cooper
Aaron Jacob, the vice president and general manager of the enterprise accounting business at TaxBit, said new crypto asset accounting guidance from the Federal Accounting Standards Board is expected to encourage the adoption of digital assets as it provides more clarity on accounting, reporting and disclosure of such assets.
Measuring and reporting digital assets at fair value can bring various benefits, such as greater transparency and insights to inform decision-making, provided that the calculations are made correctly, Jacob said in an opinion article published on Accounting Today.
“Enterprises that hold digital assets on their books are advised, more than ever, to enlist the help of a trusted partner to ensure their calculations are accurate and the proper disclosures are filed,” according to Jacob.
He also highlighted the need for companies to employ robust accounting systems to ensure that their corporate tax calculations are correct and that they are using tools and software that comply with the Internal Revenue Service’s requirements.
“Choosing an experienced partner — one that can scale with and adapt to evolving guidance — can help companies meet the new FASB requirements while also ensuring they are prepared for additional updates down the line,” he explained.
The new FASB standards will take effect for fiscal years beginning after Dec. 15.
