Adrian Johnson
TLDR:
Key Points:
- Supreme Court is considering a constitutional challenge to the Tax Cuts and Jobs Act
- FASB issues first direct accounting standard for reporting crypto assets
Tax & Accounting Update
The Tax & Accounting Update article discusses the ongoing case of Moore v. U.S. in the Supreme Court. The case involves a challenge to the Tax Cuts and Jobs Act’s one-time mandatory repatriation tax, also known as the transition tax. The Moores, who own a stake in an Indian company, argue that the tax violates the Sixteenth Amendment as it is a tax on unrealized income. The government’s position is that there is no realization requirement for the tax to be valid.
On another front, FASB has issued its first direct accounting standard for reporting crypto assets. This standard provides guidance on how businesses should measure and disclose crypto assets in their financial reports. Crypto assets meeting certain criteria must be measured at fair value each reporting period, with changes in value recognized in net income. The standard is seen as a significant step in accurately reflecting the economics of crypto assets in financial statements.
