As of mid-2017, the FASB was conducting early stage research about developing an accounting standard for digital
Question:
As of mid-2017, the FASB was conducting early stage research about developing an accounting standard for digital currency. With the use of digital currency increasing, proponents argue that inconsistent accounting practices are becoming a problem. As the digital currency Bitcoin becomes more of a household name, the FASB is con- sidering whether it needs to develop accounting guidance for digital currencies. Bitcoin is the biggest name in the digital currency business, but there are other competitors in the market such as Ethererum and Ripple. Companies such as Microsoft Corp., Dell Inc., and Overstock.com are accepting digital currency as payment. In addition to a form of pay- ment, digital currency also is held as an asset by businesses, which can sell the currency when its value goes up. Using appropriate resources identify any progress that FASB has made on this topic. Consider the auditing challenges with any new guidance provided by the FASB.
Step by Step Answer:
Auditing A Risk Based-Approach
ISBN: 978-1337619455
11th Edition
Authors: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg