What is the impact of ASC 985 on the regulation of cryptocurrencies?

3 answers

• Nov 28, 2021 · 3 years ago
  ASC 985, also known as the Software Revenue Recognition standard, has a significant impact on the regulation of cryptocurrencies. This accounting standard requires companies to follow specific guidelines when recognizing revenue from software-related transactions. As cryptocurrencies are considered digital assets and often involve software-based platforms, the implementation of ASC 985 affects how revenue from cryptocurrencies is recognized and reported. This standard ensures that companies accurately account for revenue generated from cryptocurrency-related activities, enhancing transparency and compliance in the industry.
  631316
• Nov 28, 2021 · 3 years ago
  The impact of ASC 985 on the regulation of cryptocurrencies is twofold. Firstly, it provides a standardized framework for companies to follow when recognizing revenue from cryptocurrency transactions. This helps prevent potential manipulation or misrepresentation of revenue figures, ensuring a more accurate representation of a company's financial health. Secondly, it promotes consistency and comparability in financial reporting across the cryptocurrency industry, making it easier for investors and regulators to assess the performance and compliance of different companies operating in the space.
  601201
• Nov 28, 2021 · 3 years ago
  According to industry experts, the implementation of ASC 985 has been well-received by the cryptocurrency community. It brings more clarity and transparency to the financial reporting of companies involved in the cryptocurrency industry. By following the guidelines set forth by ASC 985, companies can demonstrate their commitment to accurate and reliable financial reporting, which can enhance investor confidence and attract more institutional investors to the cryptocurrency market. Overall, ASC 985 plays a crucial role in shaping the regulatory landscape of cryptocurrencies, ensuring fair practices and accountability within the industry.
  644161