Companies Dealing In Cryptos Need To Abide By The Accounting Standards, Says SEC’s Chief Accountant

Sep 19, 2018 at 10:45 Update Date :Sep 19, 2018 at 10:45 UTC

The Securities and Exchange Commission’s (SEC) chief accountant has expressed that organizations that primarily manage digital assets and the fundamental blockchain technology are required to follow the accounting standards that are currently set up.

Speaking at the American Institute of Certified Public Accountants (AICPA) National Conference on Banks and Saving in Washington D.C., Wesley Bricker expressed that  it is essential to keep in mind that innovations in technology can be the ally of a company’s business and financial reporting activities, not their opponent.

The focal point of Bricker’s discourse was the implementation of blockchain applications and the related accounting practices. He also tended to people and organizations that conduct Initial Coin Offerings (ICOs). In November, Bricker had asked U.S. accountants to familiarize themselves with cryptocurrencies and other related digital assets.

Bricker’s speech was focused at U.S. organizations and their particular accountants, he informed that it is “important that we keep ourselves educated about developing technologies with the goal that the accountant profession can to perform the essential gatekeeper function for issuer compliance related to financial reporting.

“Take what is found out and then act suitably” inside the standards set by the administrative body, said Bricker, advertising accountants to imbibe this knowledge and use it in their reporting of these virtual assets.

Bricker concluded by saying, “distributed-ledger technology and digital asset, regardless of their energizing potential outcomes, don’t adjust this essential (revealing) obligation.”

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