Global DCA Comment Letter to FASB on Treatment of Digital Assets under US GAAP

Global DCA Comment Letter to FASB on Treatment of Digital Assets under US GAAP

“Under the conceptual framework for financial reporting, the fundamental quantitative characteristics that make accounting information useful are relevance and faithful representation.  Accounting information is relevant if it can make a difference in a decision.  Faithful representation exists when there is an agreement between accounting information and the economic events that the accounting information purports to represent. It is difficult to conclude that the current accounting standards for digital assets fundamentally meet the objective of relevance and faithful representation for this asset class. Fair value accounting through profit and loss supports the accounting conceptual framework because digital assets are sensitive to market risk and experience market volatility.  Fair value accounting is also more relevant, provides more useful information for readers and enhances comparability across entities and industries.” – Global DCA.