AICPA Committees to Explore Guidance for Digital Currencies
Following similar efforts by the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board (“IASB”), the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board and Financial Reporting Executive Committee are considering whether to issue accounting and auditing guidance on digital currencies and initial coin offerings. Both committees plan to research the matter and will likely compose a list of financial reporting questions that have appeared concerning digital transactions.
Dan Noll, the AICPA director of accounting standards, said the AICPA is considering guidance on digital currencies due to the pervasive nature of the questions being asked on the topic. Noll said he expects the committees’ research to help professionals with what to consider and things to think about with respect to digital currencies.
Aside from the AICPA’s efforts, the FASB continues to research guidance on digital currencies. Meanwhile, the IASB recently asked its IFRS Interpretations Committee to research digital currencies and create solutions to help companies and auditors determine which of the board’s existing standards are suitable for cryptocurrencies like bitcoin, and initial coin offerings. Research from the IASB staff, however, suggested that most public companies do not consider digital currencies a material issue.