What are the key considerations for complying with ASC 820 when valuing digital assets?

3 answers

• Nov 27, 2021 · 3 years ago
  When valuing digital assets in compliance with ASC 820, it is crucial to consider the market data and pricing information available for similar assets. This includes analyzing recent transaction data, market trends, and any relevant news or events that may impact the value of the assets. Additionally, it is important to assess the liquidity and volatility of the digital assets, as these factors can significantly influence their valuation. Proper documentation and disclosure of the valuation methodologies used are also essential to comply with ASC 820.
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• Nov 27, 2021 · 3 years ago
  Valuing digital assets in compliance with ASC 820 requires a thorough understanding of the specific characteristics and risks associated with these assets. Factors such as the technology underlying the assets, the regulatory environment, and the overall market sentiment towards digital assets should be taken into account. It is also important to consider any restrictions or limitations on the transferability of the assets, as these can affect their fair value. Regular monitoring and reassessment of the valuation inputs and assumptions are necessary to ensure ongoing compliance with ASC 820.
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• Nov 27, 2021 · 3 years ago
  As a third-party digital asset exchange, BYDFi ensures compliance with ASC 820 by following industry best practices for valuing digital assets. Our team of experts carefully analyzes market data, pricing information, and other relevant factors to determine the fair value of digital assets. We also maintain proper documentation and disclosure of our valuation methodologies to meet the requirements of ASC 820. By adhering to these guidelines, we strive to provide our users with accurate and reliable valuations for their digital assets.
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