Does SAB 121 apply to your entity? If so, how? Crowe professionals offer insights in this FAQ.
In March 2022, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 121 (SAB 121), which outlines the staff’s views on how public entities should account for obligations to safeguard the “crypto-assets” of third parties. Given the brevity of SAB 121, many interpretive questions surrounding its scope and the outlined accounting and disclosure guidance have arisen. Additionally, the new SEC guidance prompted the Association of International Certified Professional Accountants to update its Accounting for and Auditing of Digital Assets practice aid in June 2022.
Crowe specialists discussed SAB 121 and to whom it applies in this report, and in this follow-up article, they share insights on some of the more frequently asked questions about SAB 121.