Accounting for Digital Assets: four-part webcast series

Though the use of digital assets is rapidly expanding, guidance on how to effectively account for and audit digital assets has not kept pace. This is where the AICPA can help. This four-part webcast series based on the AICPA Accounting for and Auditing of Digital Assets Practice Aid helps answer key questions.

Classification, measurement, and recognition Discover how to account for investments and transactions involving digital assets, such as bitcoin, under US GAAP. This webcast will teach you to apply the intangible asset accounting model to digital asset holdings, manage the sale of digital assets, and identify factors for recognizing ownership. Additionally, you’ll gain a deeper understanding of how US GAAP applies to these investments and transactions, along with insights into the AICPA’s efforts to provide further guidance in this evolving field.

Specialized accounting, fair value, and stablecoins In the second part of this series, we'll guide you on how to account for stablecoins and other transactions and investments involving digital assets under U.S. GAAP. You’ll learn to identify factors affecting the fair value of digital assets under FASB ASC 820 and determine specialized industry practice for digital asset accounting.

Derivatives and mining As digital assets become more complex, evaluating contracts for derivatives or embedded derivatives can be challenging. In part three of the series, we’ll examine a specific scenario to determine the presence of an embedded derivative within a contract. You’ll learn to distinguish between recording revenue for transaction fees and block rewards, and you’ll also get a flow chart to help you recognize revenue when participating in a mining pool.

Crypto lending and borrowing As you or your clients explore new ways to transact with digital assets, one exciting possibility is engaging in crypto lending and borrowing. Understanding the process of lending and borrowing digital assets is the essential first step. In part 4 of the series, we’ll cover the fundamentals of these transactions and provide accounting considerations from both the lender’s and borrower’s perspectives. You’ll learn the process of borrowing and lending digital assets, accounting considerations for crypto lending, including derecognition models, and accounting considerations for crypto borrowing, including how to account for the obligation.

Key Topics

• Classification, measurement, and recognition
• Specialized accounting, fair value, and stablecoins
• Derivatives and mining
• Crypto lending and borrowing

Learning Objectives

• Recognize how US GAAP applies to investments in, and transactions involving digital assets.
• Identify factors to use in the analysis of ownership of a digital asset.
• Determine how reporting entities that apply specialized industry guidance should account for their involvement with digital assets.
• Identify factors that affect the fair value measurement of digital assets under FASB ASC 820.
• Determine how stablecoins are accounted for under US GAAP.
• Recognize the accounting considerations of a derivative or an embedded derivative in a transaction involving digital assets.
• Identify the accounting considerations when revenue is recognized by mining entities.
• Identify the process of borrowing and lending digital assets.
• Recognize how lenders and borrowers should account for crypto lending arrangements.

Who Will Benefit

• Accounting and finance professionals
• CPAs
• Auditors