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Category: Financial Reporting

  • [ISCA] Auditing Crypto Assets: How To Verify Existence And Ownership

    [ISCA] Auditing Crypto Assets: How To Verify Existence And Ownership

    Wei Xiang

    As of 11 February 2025, the number of financial institutions licensed by the Monetary Authority of Singapore (MAS) to provide Digital Payment Token services has surpassed 30, and it continues to grow. With Bitcoin reaching an all-time high, there is increasing demand to verify the existence and ownership of cryptocurrencies (crypto) in financial audits and… Read more

  • [The CPA Journal] Auditing Cryptocurrency Companies

    [The CPA Journal] Auditing Cryptocurrency Companies

    Wei Xiang

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    Recent events in the cryptocurrency industry highlight the risks for investors and customers—as well as auditors. This article summarizes the international, U.S. GAAP, and PCAOB auditing standards and practices relevant to audits of crypto companies. To better understand the auditing environment for, and the riskiness of, cryptocurrency companies, the audit reports and financial statements of… Read more

  • [ChainwiseCPA] The Tax Implications of Different Crypto Transactions: Trading, Mining, and Staking

    [ChainwiseCPA] The Tax Implications of Different Crypto Transactions: Trading, Mining, and Staking

    Wei Xiang

    Key Takeaways: As cryptocurrency adoption continues to grow, understanding the tax implications of different crypto transactions is essential for investors, miners, and stakers. The IRS treats cryptocurrency as property, which means various transactions have different tax consequences. In this article, we break down the tax treatment of crypto trading, mining, and staking in simple terms… Read more

  • [TAQ] A Roadmap to Start Auditing Crypto Exchanges

    [TAQ] A Roadmap to Start Auditing Crypto Exchanges

    Wei Xiang

    ,

    Financial auditing is already a complex task, demanding specialized skills and expertise to assess a company’s complete set of books and records. When it comes to crypto companies, these challenges multiply exponentially. Need to verify asset balances? There’s no bank confirmation for that. Trying to validate transaction details? They’re on the blockchain, good luck! Does… Read more

  • [TAQ] How to automate crypto bookkeeping using a crypto sub-ledger & Xero

    [TAQ] How to automate crypto bookkeeping using a crypto sub-ledger & Xero

    Wei Xiang

    If your company deals with crypto, your first instinct might be to grab a CSV from a block explorer and manually categorize all those transaction hashes. Hate to break it to you, but spreadsheets make crypto bookkeeping a nightmare, slow, tedious, and way too time-consuming. Plus block explorers have not been designed for accounting purposes.… Read more

  • [CAMUSO|CPA] Web3 Accounting: Setting Up Your Chart of Accounts

    [CAMUSO|CPA] Web3 Accounting: Setting Up Your Chart of Accounts

    Wei Xiang

    Establishing a Robust Chart of Accounts for Your Web3 Business In the ever-evolving landscape of Web3, setting up an accounting system tailored to your business is crucial. One of the foundational steps in this process is establishing a robust Chart of Accounts (COA). This guide delves into the intricacies of creating a COA, providing you… Read more

  • [KPMG] Crypto intangible assets

    [KPMG] Crypto intangible assets

    Wei Xiang

    This KPMG report provides a comprehensive guide to the accounting treatment of crypto intangible assets under U.S. GAAP, focusing on entities that are not broker-dealers or investment companies. Key Points: Read more

  • [Deloitte] SAB 121 and Done: SEC Issues SAB 122 to Rescind Guidance on Safeguarding Crypto Assets

    [Deloitte] SAB 121 and Done: SEC Issues SAB 122 to Rescind Guidance on Safeguarding Crypto Assets

    Wei Xiang

    On January 23, 2025, the SEC issued Staff Accounting Bulletin (SAB) No. 122 to rescind SAB 121, which had previously required entities to recognize liabilities and corresponding assets for the safeguarding of crypto assets. SAB 121, introduced in March 2022, caused significant changes to financial reporting by requiring the fair value of safeguarded crypto assets… Read more

  • [KPMG] SEC rescinds SAB 121

    [KPMG] SEC rescinds SAB 121

    Wei Xiang

    Breaking News for Crypto Businesses: SEC Rescinds SAB 121! The SEC has made a significant move by rescinding SAB 121, which previously required companies to recognize certain crypto assets. This shift provides more flexibility in how crypto assets are reported, offering clearer guidelines for businesses in the digital asset space. Key Implications:1. Easier accounting for… Read more

  • [Request] The ultimate Web3 CFO guide 2025

    [Request] The ultimate Web3 CFO guide 2025

    Wei Xiang

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    1. Education is needed to help finance professionals understand Web3. Most CFOs at Web3 organizations have prior experience in financial operations, accounting, or similar roles but struggle to learn about Web3. 2. Financial Operations (FinOps) tooling in Web3 represents a tremendously underserved SaaS category. Existing payments, accounting, or enterprise resource planning (ERP) tools are illsuited… Read more