Sat, Oct 19, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Cryptocurrencies and digital assets create fair value headaches for auditors

Thursday, July 25, 2019

Bailey McCann, Opalesque New York:

Cryptocurrencies and other digital assets raise unique valuation questions for auditors. Digital assets are the only investments that truly trade 24/7/365 and also lack a clear principle market which makes it difficult for auditors to establish a consistent fair value. Delegates at the recent Opalesque Crypto Asset Pricing & Valuation Roundtable say that the industry will have to provide answers to valuation questions if digital assets are to be adopted for widespread use and as investments.

"We all know that from time to time there are pricing inconsistencies across these markets," says Joshua Lefcowitz, Partner-in-Charge, Valuation Services at accounting firm Cohen & Company. "If we are talking about fair value measurements for audited financial statements, how do you price these actively traded or liquid assets and establish consistency across the industry?"

Lefcowitz notes that often times individual clients will consider certain exchanges the "principal market" because they have consistently higher valuations listed or they are easier to use. But from an accounting perspective, that's a tough sell. Auditors will want to see the principal market defined as the primary market for a digital asset not just whatever exchange an investment fund likes best. Creating standardization around principal markets for individual digital asset classes will make it easier for auditors to convert the value of investment portfolios into US ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. These hedge funds do better. So why can't they raise more money?[more]

    From Institutional Investor: It's an enduring paradox: hedge funds run by women and minorities outperform their peers - but run less money. Evidence continues to mount that the money investors allocate to minority- and women-controlled hedge funds stands a better than even chance of outperformi

  2. Tech: Quantum computing may be closer than expected with 'game changer' discovery[more]

    From Inverse: While quantum computing has long been an exciting notion for scientists and the public alike, the realization of these technologists has long been on hold. But researchers from the Johns Hopkins University have discovered a material that might just fast-track the creation of these, unt

  3. PE/VC: Private-equity deals depress worker wages, study finds, Thoma Bravo to buy Sophos for $3.9bn, Unicorn valuations are fit to burst, warn investors[more]

    Private-equity deals depress worker wages, study finds From Market Watch: Private-equity deals result in worse pay for workers, and, depending on whether the buyout target was public or not, fewer jobs, according to a newly published study. The study of some 6,000 private-equity de

  4. Tech: When AI invests in AI[more]

    From Forbes: The title of this article might sound farfetched to many readers, but keen students of artificial intelligence (AI) know that this is no longer very far away. Since the advent of computers, capital markets have always been at the forefront of technology. Yes, that's right. You may be wo

  5. Institutional investors in Canada, U.S., and the U.K are warming to responsible investing, says a survey[more]

    Laxman Pai, Opalesque Asia: The use of environmental, social and governance (ESG) principles by institutional investors in Canada, the US, and the UK is rising according to a new survey. RBC Global Asset Management (RBC GAM)'s annual survey on responsible investing trends found that more