Regulatory transparency and better accounting standards can help restore the future of digital assets.
Markham, ON, Jan. 14, 2023 (GLOBE NEWSWIRE) — According to a post on the FASB website, the Financial Accounting Standards Board (FASB) on January 5, 2023 updated its December 14, 2022 “Accounting and Accounting provisional decision. Disclosure of Crypto Assets”. Updated accounting standards documents indicate that investment firms and non-profit organizations must present their crypto asset financial statements separately in accordance with the respective requirements.
The FASB also ruled that companies will be required to disclose a number of specific items related to their crypto assets and activities;
Significant deductions. The company must provide a list of specific assets it owns (focusing on those assets that are considered material or substantial) and will disclose the name of the asset, the amount held, as well as the cost basis and fair value of the property.
Reconciliation or transfer of crypto assets for the relevant period; This will include opening balances as well as additions, disposals, gains/losses (realized or unrealized) etc. that occurred during the period up to the due date at the end of the period. The Board may also require companies to provide additional information indicating cumulative gains/losses on the company’s current holdings.
The fair value of restricted assets and the nature of those restrictions; A company may have tokens that are locked and otherwise unavailable to them. In that case, the company must disclose it in the disclosures so that users of the financial statements can understand which assets are realizable.
Follow the existing disclosure requirements in ASC 820 for fair value measurement more broadly; This will specifically include classification levels in the fair value hierarchy and disclosures of related party transactions
“This is good news for many people in the digital asset industry who have advocated for this change.” CFund Capital: CEO Robert Levine said: “Acceptance of the proposal may better reflect the CFund’s balance sheet or financial statements. The actual value of the cryptocurrencies held will help our investors to more accurately understand the financial position of CFund Capital. At the same time, it also provided favorable support to CFund Capital’s pre-listing compliance operations.”
The FASB has reportedly added an item on accounting for digital assets to its May 2022 technical agenda. In August, it decided to limit the scope of the program to convertible digital assets, which are accounted for as intangible assets under current US GAAP. (GAAP). At the October 12 meeting, it was originally decided to require that crypto assets in the framework be measured at fair value. The requirement will apply to both public and private companies.
The FASB received more than 400 comments on its invitation for comments from reviewers who supported the fair value measurement.
Anthony Toots, head of Alternative Investment Tax at KPMG, said: “The proposal is likely to benefit the wider adoption of cryptocurrency, as the FASB is simply paving the way for new crypto accounting guidelines that will allow most cryptocurrencies to be pegged at real value. will go into effect, it will go a long way in paving the way for wider adoption.”
“The new FASB cryptocurrency accounting standards will allow companies to more accurately represent their current crypto assets in their financial statements,” said Miles Brooks, director of strategy at crypto tax firm CoinLedger.
“CFund Capital’s financial disclosure announcement under the latest FASB cryptocurrency accounting standards will greatly facilitate mainstream adoption of cryptoassets and bring more traditional investors into the crypto industry,” said Robert Levine, CEO of CFund Capital.
In early 2023, CFund Capital established law firms in countries and regions in North America, Europe and Asia-Pacific to provide crypto asset management and market maker services to local users.
Currently, the crypto fund platform presented by CFund Capital is building a comprehensive investment service platform that integrates NFT, DeFi, GameFi, CEX, Payment and digital wallet. CFund Capital has issued a CFT platform token. With CFund’s global business alignment, CFT will play a critical role in CFund’s comprehensive investment services platform.
In the next three years, CFund: will use the capital market to accelerate the construction of global strategic alignment, consolidate existing advantages, actively explore upstream and downstream growth opportunities of the blockchain industry, constantly improve CFund’s international core competitiveness, and strive to build the company into a world-class crypto asset management and crypto market creation product brand.
For more information about CFund Capital, visit CFund’s website (www.CFund.cc) and CFund’s official Twitter account (@CFundCC).
Company Name: CFund Capital Canada Inc
Email: [email protected]