In December 2023, FASB published Accounting Standard Update (ASU) No. 2023-08, Accounting for and disclosure of crypto assets. In this individual writing assignment, you are asked to write a report of up to 5 pages using Word, double-spaced, size 12 Times New Roman font, to address the following required questions about accounting for crypto assets. You may use Generative AI apps such as ChatGPT and Gemini in your research. However, your report should reflect your own work. At the end of your report, you need to provide a list of references used, including the AI apps used. You may also include any exhibits or graphs in an Appendix. Both the list of references and the appendix do not count toward the page limit.
Required:
Briefly describe crypto assets. Which features of crypto assets may make them challenging to accountants and auditors? Explain.
In December 2023, FASB published Accounting Standard Update (ASU) No. 2023-08, Accounting for and disclosure of crypto assets.
Why did FASB issue this ASU?
Before this ASU takes effect, how did a public company, who is not the creator/issuer of the crypto assets, account for crypto assets under US GAAP? Which topic(s) and subtopic(s) in the FASB Accounting Standards Codification (ASC) were usually applied? Include numeric citations of the ASC in your discussion.
What are the main changes FASB is making through this ASU? What arguments does FASB provide in support of these changes? Include numeric citations of the ASC in your discussion when applicable.
As an investor (user of financial information) and future accountant and auditor, do you agree or disagree with the changes FASB is making? Explain.
In December 2023, FASB published Accounting Standard Update (ASU) No. 2023-08, A
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