The growing public interest in the use of cryptocurrencies creates a need for public accountants to handle calculations regarding clients' digital assets.
To this regard, the California Society of Certified Public Accountants (CalCPA) recently sent a letter to the Financial Accounting Standards Board (FASB), a body that establishes accounting principles in the United States.
In the letter reportedly obtained by crypto news agency, Cointelegraph, CalCPA reminded that FASB that until date, the Generally Accepted Accounting Principles (GAAP) do not adequately capture cryptocurrencies or how accountants should calculate holdings.
To make a point regarding while the FASB should create accounting standards for cryptocurrencies, the letter mentioned that the challenges associated with calculating the value of the new type of currency are not different from what accountants have to deal with when calculating foreign currencies.
Also, CalCPA’s letter provided objections to a common reason that the FASB could present regarding while accountants do not need different standards for calculating cryptocurrency holdings.
While the FASB may like other government agencies keep reminding citizens that cryptocurrencies are not legal tenders, the letter argued that such an application would only be relevant if the gold standard still existed.
“The ‘gold standard’ is long gone, and governments only influence, but do not really back their own respective currencies.”
Moving further, the CalCPA letter noted that “instances of massive currency devaluation are not infrequent and well known. And while bitcoin is not legal tender in the U.S., neither is the Canadian dollar or any other foreign currency.”
Remarkably, this is the second time in the space of a few months that a group of industry leaders seeks more clarification regarding the calculation of cryptocurrency holdings.
On the other occasion, we reported that 21 U.S lawmakers led by Rep. Tom Emmer sent an inquiry to the U.S Internal Revenue Service (IRS) asking for more guidance on how citizens should file crypto taxes.