Description
Digital assets like cryptocurrency and NFT’s are gaining importance in finance and business. In this module, we will explore the FASB’s position on these new type of assets.
Part 1:
1. Explore Cryptocurrency
You can do your own research as well.
2. What is the FASB doing to regulate these digital assets?
FASB Homes in on Cryptocurrency
FASB’s handout on Digital Assets
From the KPMG library
FASB finalizes crypto rules
Assignment Part 1: Go to fasb.org. Find information about its latest regulation on cryptocurrencies/digital assets. Answer the following questions (1 page)
Why did the FASB want to regulate these “assets”?
How are cryptocurrencies to be treated according to the new rules?
Do you agree with the rules? Why or why not?
Assignment Part 2: Access the Wall Street Journal database from our library. Find the article “More U.S. Companies Wade Into NFTs Despite Lack of Accounting Rules”.
Read the article and answer the following questions: (1 – 2 pages)
What is an NFT? How is one created? How are they valued?
How do you think NFTs should be reported in a business’ accounting records? Why?
What is the SEC? What are its areas of authority? How could the SEC be involved in these accounting and reporting issues?
What is GAAP? What are non-GAAP metrics? How do they differ? How might businesses use GAAP or non-GAAP metrics in accounting for NFTs? What issues could this cause?
What is fair value accounting? How could it be applied to accounting for NFTs?
What is the FASB? What is its area of authority? Why does the organization have authority over accounting rules? What is the FASB doing regarding accounting rules for NFTs?
What are the issues and challenges related to accounting for NFTs? How could these issues be remedied?
Combine both answers into ONE pdf or Word document and upload here. Do NOT upload separate documents for each part of the assignment. PLEASE done use CHATGPT
