Stable Coins and Accounting - Issues for a New Digital Currency
From the "Journal of Accountancy"; December 2020 "The AICPA on Thursday published non-authoritative guidance on issues related to the accounting for digital assets. The guidance, which consists of 13 questions and answers added to the free practice aid Accounting for and Auditing of Digital Assets , touches on topics including fair value, stablecoins, and how investment companies and broker-dealers should account for digital assets. The practice aid defines digital assets broadly as digital records, made using cryptography for verification and security purposes, on a distributed ledger. Examples of digital assets include the crypto asset bitcoin, which operates on the Bitcoin blockchain, and ether, which operates on the Ethereum blockchain. The new guidance is divided among the following five section titles: Meeting the Definition of an Investment Company When Engaging in Digital Asset Activities. Accounting by an Investment Company for Digital Assets It Holds as an Inv...