In “Crypto Sector Slow to Adopt New Accounting Rules Despite Years of Advocacy” (Accounting & Compliance Alert, 23 July 2024), Jennifer Law comments on the slow implementation of the latest accounting guidance designed to give a more accurate representation of a company’s digital asset holdings. Jennifer highlights the importance of early adoption—especially for investment firms and companies with significant cryptocurrency holdings—but notes that timing is crucial: “Whether or not companies implement it will depend on their individual circumstances. Some may not be ready due to a lack of infrastructure to handle the reporting.”
Jennifer also recommends that companies preparing for adoption create a new pro forma statement based on their current financial statements. “It makes sense to review their current financial statements, including previous disclosures, and then create a pro forma statement in Q3 to see what’s involved and how it will impact their disclosures.”
Read the article in Reuters Accounting & Compliance Alert. (Subscription may be required.)
