FASB News
CPAs, Companies Pushing for Accounting and Disclosure Rules for Cryptocurrencies
U.S. GAAP does not have specific guidance on how to account for and disclose cryptocurrencies, and as a result, CPAs and companies in technology and not-for-profit industries are pushing for new rules to be developed. “We believe the usage of cryptocurrencies will not diminish over time, and will continue to expand in both volume and new fields of application,” Nancy Rix, chair of the California Society of CPAs, told FASB. “We anticipate it will not be long before major public companies start using cryptocurrencies, as illustrated by JP Morgan’s decision to issue JPM Coin in February 2019.” Much of the accounting confusion regarding cryptocurrencies, also known as digital currencies, stems from differences in how they are viewed. Some use a “lower of cost or market” or a “fair value” approach, while others view them as intangible assets, valued at historical cost less impairment.
PCAOB News
Dwyer Named Deputy Director of Office of External Affairs
On May 29, the PCAOB named Erin Dwyer as deputy director of the Office of External Affairs to serve as the board’s liaison to investors, audit committees, and preparers. The position was created by the board to better reach out to key stakeholders as outlined in its long-term strategic plan. Dwyer was previously managing director of stakeholder engagement and communications at the Center for Audit Quality (CAQ), an affiliate of the AICPA that represents the audit profession. “The Board is dedicated to enhancing transparency and accessibility through proactive engagement,” PCAOB Chairman William Duhnke said in a statement. “Erin brings more than twenty years of experience working with investors and, in the past several years, audit committees and preparers, which will be critical to the Board’s ability to cultivate a more dynamic dialogue with them. We encourage investors, audit committees, and preparers to reach out to Erin at any time with questions or feedback for the PCAOB.”
SEC News
Chief Accountant Wesley Bricker to Leave
SEC Chief Accountant Wesley Bricker will leave the agency in June, the commission announced. As chief accountant, Bricker has served as the principal adviser to the commission on accounting and auditing matters since November 2016. He has been responsible for assisting the commission with its oversight of FASB and the PCAOB. Sagar Teotia, currently a deputy chief accountant and leader of the accounting group in the Office of the Chief Accountant (OCA) since 2017, will be the SEC’s acting chief accountant following Bricker’s departure. “Wes is both the consummate professional and model public servant,” SEC Chairman Jay Clayton said in a statement. “From the first day I met Wes, I was impressed by the depth of his knowledge and his commitment to high quality standards for the benefit of our markets and our investors. Wes has moved the Commission forward in many ways, and I cannot thank him enough for his service.”
