FASB proposal addresses whether certain digital assets are cash equivalents

FASB is seeking feedback on a proposed Accounting Standards Update (ASU) that aims to clarify how the current definition of cash equivalents applies to stablecoins and certain other digital assets.

Stakeholders have until Nov. 19 to comment on the proposed ASU, which also is intended to increase transparency around significant components of cash equivalents. The amendments, according to a news release, are in response to uncertainty expressed by stakeholders regarding whether certain digital assets meet the definition of cash equivalents under current GAAP.

The proposed ASU, according to the release, provides illustrative examples to promote more consistent application of that definition and improve comparability among entities that elect to present qualifying digital assets as cash equivalents. The proposal would not change the definition of “cash equivalents.” 

The ASU also would require enhanced disclosures of significant components and related amounts of cash equivalents, regardless of whether any of those assets are digital assets, in order to provide investors and other financial statement users with more transparent information.

Salo named next FASB chair

Hillary Salo, currently FASB’s vice chair, will replace Richard Jones as chair when his term concludes in 2027, the Board of Trustees of the Financial Accounting Foundation (FAF) said in a news release. FAF is the parent organization of FASB.

Salo, a former KPMG audit partner, is set to serve in the role from July 1, 2027, through June 30, 2034.

FAF is seeking candidates interested in filling the board position that Salo will vacate in addition to another board position set to become vacant next year.

FAF also announced the appointment of new trustees Christopher Hatto, Kevin McBride, David Miller, and Robert Poynter, who will begin five-year terms in 2027.

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.