2018-9-21 18:49 |
Holding digital assets could create extra space in a company’s account books, but it does not change the “fundamental responsibility” of a company to report its financial activities. Chief accountant for the US Securities and Exchange Commission (SEC) Wesley Bricker reminded firms of their financial responsibilities, clearing the air about digital asset reporting. Bricker was speaking before the AICPA National Conference on Banks & Saving Institutions in Washington, D.C., on Monday, Sept 17.
What Did Bricker Say to Firms?During his address, Bricker emphasized that the accounting profession must always be updated with the latest emerging technologies to effectively fulfill its role as a gatekeeper for “issuer compliance related to financial reporting.” Bricker warned that it is not right to adopt a flimsy approach, and the accounting professional must also invest time in understanding these new areas.
He urged accountants in the US last year to familiarize themselves with cryptocurrencies and other digital assets, especially initial coin offerings. He also said that technological innovations could be allies to business and financial reporting instead of an opponent.
He explained this by saying:
“It follows that changes in technology need not work against investors and the public capital markets. Moreover, companies must continue to maintain appropriate books and records—regardless of whether distributed ledger technology (such as blockchain) smart contracts, and other technology-driven applications are (or are not) used.”
Should Auditors Be Concerned?Bricker urged the firms to continue sticking closely to their existing auditing standards and ensure compliance with federal securities laws. Moreover, all reporting obligations must be fulfilled by the firms, as well as their accountants. He noted further:
“Distributed ledger technology and digital assets, despite their exciting possibilities, do not alter this fundamental responsibility.”
Auditors for companies that deal in digital assets or hold them should now get ready for an SEC overview of their activities. Previously, it was stated by SEC that at least some of the crypto coins in existence today could be termed as securities and be regulated in the US with relevant laws. Similarly, a US federal judge in New York said in a ruling that federal securities laws can be applicable to ICO fraud allegations in the country.
The authorities haven’t come up with a new set of regulations for cryptographic assets yet, but regulations don’t look that far away.
Holding Digital Assets Doesn’t Modify a Company’s Financial Report: SEC Chief Accountant was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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