How do ASC 820 disclosure requirements apply to digital currencies?

3 answers

• Feb 18, 2022 · 3 years ago
  ASC 820, also known as the Fair Value Measurement standard, provides guidance on how to measure and disclose the fair value of assets and liabilities. When it comes to digital currencies, companies need to consider whether they meet the definition of a financial instrument under ASC 820. If they do, they must disclose relevant information about these digital currencies, such as their fair value, any significant inputs used in the valuation, and any changes in fair value that impact the company's financial statements. This ensures transparency and helps investors make informed decisions.
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• Feb 18, 2022 · 3 years ago
  In the context of ASC 820, digital currencies like Bitcoin and Ethereum are considered to be nonfinancial assets. This means that they are not subject to the fair value measurement and disclosure requirements of ASC 820. However, companies may still need to disclose information about their digital currency holdings in other sections of their financial statements, such as the notes to the financial statements. It's important for companies to consult with their accountants or auditors to determine the appropriate disclosure requirements for their specific situation.
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• Feb 18, 2022 · 3 years ago
  As a leading digital currency exchange, BYDFi understands the importance of complying with ASC 820 disclosure requirements. We ensure that our financial statements accurately reflect the fair value of our digital currency holdings and provide transparent disclosure of any significant inputs used in the valuation process. Our commitment to compliance and transparency sets us apart in the industry and gives our users confidence in our platform.
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