In a recent set of events, the California Society of Certified Public Accountants (CalCPA), a Burlingame, California-based largest statewide association of certified public accountants in the US, has asked the Financial Accounting Standards Board (FASB) to give more clarity on cryptocurrency holdings.
As per recent reports, in its letter to FASB, CalCPA, stating “accounting for cryptocurrencies” not being adequately dealt with the established US Generally Accepted Accounting Principles (GAAP) by the FASB, has asked FASB to align all such digital currencies with the foreign currency accounting model. Arguing that most of the cryptocurrency features and risks are similar to those of foreign currency, CalCPA stated, “…while no government backs cryptocurrencies, the ‘gold standard’ is long gone, and governments only influence, but do not really back, their own respective currencies. Instances of massive currency devaluation are not infrequent and well known. And while bitcoin is not legal tender in the U.S., neither is Canadian dollar, or any other foreign currency.”
In its letter, CalCPA has urged the FASB to initiate an accounting cryptocurrencies project and include it on to the Board’s or Emerging Issues Task Force’s technical agenda, expecting the continued expansion of digital currencies in both volume and new application use-cases.
Lately, regulatory clarity for cryptocurrencies is on a steep rise. CalCPA’s recent request to the FASB follows the bipartisan letter from 21 US congressmen to the US Internal Revenue Service (IRS), in Apr. 2019, urging the IRS to clarify the cryptocurrency tax reporting.