Adrian Johnson
TLDR:
Key Points:
- TaxBit has launched an industry-first Principal Market Pricing feature for fair value accounting.
- The new feature enhances accuracy, reduces manual efforts, and ensures compliance with evolving accounting standards.
Main Article:
In a recent announcement, TaxBit, a leader in digital asset accounting and tax solutions, unveiled the launch of its enterprise-grade pricing feature within the TaxBit Accounting Suite. This Principal Market Analysis (PMA) tool is a first-of-its-kind solution that aims to enhance precision, reduce manual efforts, and ensure compliance with evolving accounting standards, including the recent FASB ASU 2023-08 guidance.
Under the new fair value accounting rules enforced by the latest FASB ASU 2023-08 guidance, companies will face increased scrutiny on the source of their pricing data. Guidance in ASC 820 explains how companies should determine the appropriate pricing source for fair value measurements. The AICPA’s Digital Asset Practice Aid also clarifies that companies should not use pricing aggregators, making the need for precise, auditable data more critical than ever.
Enterprises need to analyze and justify price selections from specific exchanges when determining crypto fair value measurements. TaxBit’s PMA support tool equips companies with the resources to justify price selections from particular exchanges, ensuring precision and compliance with fair value accounting.
Key features and benefits of TaxBit’s PMA support tool include robust pricing support, enhanced accuracy, detailed analysis empowering companies to enact policy elections, and seamless integration with existing accounting workflows. Notably, PayPal is already leveraging this tool to integrate robust pricing support into their operations and tailor solutions to meet their unique needs.
Aaron Jacob, VP of Accounting Solutions at TaxBit, emphasized the importance of accurate pricing and quantifiable evidence supporting pricing sources in an audit-ready manner under the new fair value framework. TaxBit’s new PMA feature aims to revolutionize how businesses handle fair value accounting, making it more efficient and accurate.
TaxBit’s new pricing feature is now available to users within the TaxBit Accounting Suite. For more information, interested parties can visit TaxBit’s website.
