A widely disliked accounting rule has finally received its marching orders: the controversial SAB 121 is being axed.
SEC Commissioner Hester Peirce made the announcement on Crypto Twitter, much to the liking of the community, with the CEO of Mara Holding being one of the first to express his gratitude:
The original SAB 121 required crypto custodians to record both a liability and a corresponding asset for crypto-assets held on behalf of customers, marking them to fair value each reporting period, irrespective of who controls a crypto-asset.
This was a significant departure from previous practices, which relied on more nuanced judgments about asset control and custodial arrangements.
SAB 121 is replaced by SAB 122 which directs firms to use established Financial Accounting Standards Board or International Accounting Standard rules.
Developing story, more to come.
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