The companies intend to develop and implement a new methodology for preparing financial statements for cryptocurrency companies, revealing the qualitative features of the digital asset industry in the context of the requirements of the US Generally Accepted Accounting Principles (GAAP).
“Through this collaboration, we can offer our clients a comprehensive solution that will enable them to optimize their digital asset accounting practices and meet their regulatory obligations. Together, we are setting new reporting standards for regulated institutions that are adopting digital assets,” KPMG and Cryptio said in a joint statement.
The alliance added that companies and institutions entering or already present in the digital asset space will be able to leverage a joint end-to-end solution that combines a cryptographic data layer and technology stack with specialized expertise and regulatory guidance.
The current version of GAAP does not contain a uniform definition of digital assets. This leads to ambiguity in the interpretation and application of accounting rules. US regulators are concerned that crypto companies do not disclose sufficient information about digital assets in their financial statements. This, in their opinion, may make it difficult for investors and other stakeholders to assess the financial position and prospects of the company.
For example, MicroStrategy was forced to remove cryptocurrency investment data from its financial statements at the request of the US Securities and Exchange Commission (SEC). The regulator justified its demands by the high volatility of Bitcoin.
Source: Bits
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