FASB has recognized the growing prevalence and importance of crypto assets and released an exposure draft on the subject earlier this year. *** In March 2023, FASB issued an exposure draft (ED), “Intangibles—Goodwill and Other-Crypto Assets (Subtopic 350-60)” that identified weaknesses in reporting for crypto assets. The digital asset economy presents opportunities and problems for both investors and auditors, as regulators struggle to define a crypto asset. These actions are two of over dozens of SEC filings against entities concerning crypto assets and related transactions (https://www.sec.gov/news/press-release/2023-110). Certain investors also requested additional disclosures about the types of crypto assets held by entities and changes in those holdings.

Source: Wall Street Journal November 03, 2023 16:50 UTC