GettyImages 647650304 1 Get Ahead of the Curve: FASB's New Priorities for Crypto

Get Ahead of the Curve: FASB’s New Priorities for Crypto

Read Time:1 Minute

-The Financial Accounting Standards Board (FASB) recently added cryptocurrency and digital assets, environmental credits and software costs to its technical agenda.
-FASB Chair Richard Jones recently spoke to CFO Dive about the outreach process and his outlook on FASBs priorities going forward.
-Jones said that the goal of the outreach program was to get input from investors, accountants, auditors, regulators and academics on where the board should focus its standard-setting efforts.
-Jones said that he was pleasantly surprised by how interested stakeholders were in improving financial reporting.
-Jones said that the volume of feedback on cryptocurrency was unexpected but that it was important to get input from a broad range of stakeholders.
-FASB recently put cryptocurrency back on its technical agenda after opting not to take it up in 2020.
-There has been a call from some in the crypto sector to get a quick fix from FASB on the fair market value issue.
-FASB also recently took goodwill accounting off its technical agenda after four years.
-Jones said that FASBs priority projects are those that were identified as priorities by stakeholders in the outreach program, including disaggregation of income statement expenses, disclosing additional expense information, and improving income tax disclosures.
-Jones said that most of the projects on FASBs agenda have a one- to three-year time frame for completion.
-Jones said that the impetus behind the disaggregation of expenses is likely driven by the variability in costs, such as inflation, supply constraints, or the scarcity of employment.
-When asked about the recent signals of more aggressive regulatory stances at the Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB), Jones said that FASB has close working relationships with both organizations but that one organization choosing to focus on an area or take action in one area or another doesnt necessarily affect FASB.
-Jones said that his hope for his legacy as FASB chair is that he contributed to the improvement of financial accounting reporting.

 

 

Get Ahead of the Curve: FASB's New Priorities for Crypto
Get Ahead of the Curve: FASB's New Priorities for Crypto 3

Leave a Reply

%d bloggers like this: