The Board has tentatively decided to amend ASC 350-60’s disclosure requirements, as follows:
- Illustrate that wrapped, and presumably receipt, tokens would be disclosed separately, if significant, from other crypto asset holdings;
- Illustrate disaggregation of significant crypto asset holdings to include assets that would be brought into the scope of ASC 350-60 by the Board’s crypto asset transfer decisions (e.g. encumbered crypto assets);
- Clarify that the ASC 350-60 disclosures should capture transfer restrictions related to staked tokens, wrapped tokens and loaned or otherwise encumbered crypto intangible assets; and
- Expand the existing rollforward disclosure examples to illustrate the effects of crypto intangible asset transfers, including the receipt of wrapped or receipt tokens.
The Board also tentatively decided to require entities to disclose additional details about their significant crypto asset holdings, including how they use those assets and information about risks or restrictions affecting an entity’s ability to use or access its crypto assets.
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