The American Institute of CPA has updated its practice aid, Accounting for and Auditing of Digital Assets, in response to the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2023-08, Intangibles – Goodwill and Other – Crypto Assets (Subtopic 350-60): Accounting for and Disclosure Of Crypto Assets. The practice aid offers a new definition for digital assets, new and amended accounting questions, and the introduction of new terms.
The Digital Assets Practice Aid includes vital information on how to account for and audit digital assets. It is essential guidance for those currently in the digital asset ecosystem or considering entering it especially as a financial statement preparer or an auditor. The document is written for those with a fundamental knowledge of blockchain technology, is based on existing professional literature and the experience of members of the Digital Assets Working Group and is specific to U.S. GAAP (for non-governmental entities) and GAAS.
“Digital assets is still a rapidly changing and growing area of practice, and also a great area of opportunity for accounting professionals,” said Di Krupica, senior manager of emerging assurance technologies for AICPA & CIMA. “The January 2025 updates to the Digital Assets Practice Aid will help professionals stay informed of current, timely updates from the FASB, which we consider of utmost importance. The new content provides key answers to new accounting questions stemming from the professional community, and future updates will continue to push out the most relevant information as it’s available.”
Some of the new accounting questions answered in the updated Practice Aid include:
- Are “wrapped tokens” in the scope of FASB ASC 350-60?
- Are nonfungible tokens (NFTs) in the scope of FASB ASC 350-60?
- Are transaction costs (for example, commissions, gas fees) to acquire crypto intangible assets included in the initial measurement of the acquired asset?
- Are gains and losses from the remeasurement and sale of in-scope crypto intangible assets presented as operating or nonoperating items in the entity’s income statement?
As a result of this update, the entire Practice Aid now reflects the new terms. For instance, the term “crypto assets” is no longer in use, and new terms such as crypto intangible assets, in-scope crypto intangibles assets and out-of-scope crypto intangibles assets have been introduced. All new terms are currently published in the AICPA Blockchain Universal Glossary.
The updated Accounting for and Auditing of Digital Assets Practice Aid is available for AICPA members to view here.
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Tags: Accounting, AICPA, Technology
