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Episode 55 | Mackenzie Patel from Hash Basis on US GAAP Fair Value Accounting for Crypto
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The 2 words on every crypto accountant’s lips these days are fair value.
Until now, crypto assets had to be measured at initial cost and could not be revalued at its market price.
To make matters worse for investors, they were also subject to an annual impairment review, and any subsequent gains in the value of the asset could only be realized at the time of disposal.
In December 2023, the FASB published an update that seeks to better reflect the economics of crypto assets, thereby allowing companies to measure crypto assets at fair value.
In short, these new changes seek to improve the accounting for and disclosure of crypto assets so investors can make more informed decisions.
On Episode 55, I had the pleasure to have a returning guest, one of the most highly sought-after & well-respected crypto accountants in the industry, Mackenzie Patel, the Founding Partner at Hash Basis, a crypto accounting & taxation services firm.
Topics Covered:
- Episode intro (00:39)
- Mackenzie’s background (2:54)
- Cost less impairment accounting for crypto (4:17)
- US GAAP fair value accounting for crypto (5:39)
- Is impairment still required (7:46)
- Crypto assets fair value accounting applies to (9:22)
- New disclosure requirements (12:27)
- Thank you to our sponsor Cryptoworth (16:32)
- Concerns with new US GAAP update (18:06)
- Adjustment for retained earnings (20:04)
- Sub-ledger features for fair value accounting (23:59)
- Cash flow requirements (26:46)
- Thank you to our sponsor Web3CFO Club (29:35)
- Crypto accounting & tax services with Hash Basis (31:33)
- Career opportunities at Hash Basis (35:00)
- Onboarding of new clients at Hash Basis (36:14)
- Form 8300 and tax reporting over $10,000 (39:16)
- A failure that set Mackenzie up for success (42:55)
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Twitter: https://twitter.com/HashBasis
LinkedIN: https://www.linkedin.com/company/hash-basis/
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Website
For show notes and past guests, please visit theaccountantquits.com/podcast/
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