Blockchain Working Groups to Focus on Regulatory Compliance, Auditing and Accounting, Taxation, and Internal Control
NEW YORK, N.Y., USA – May 15, 2017 ––The Accounting Blockchain Coalition (ABC) launched today four new member-driven working groups in Regulatory Compliance, Auditing and Accounting, Taxation, and Internal Control. Each working group is tasked with providing blockchain information and materials that inform and educate, provide guides, use cases, and analysis to advance the use of blockchains in the accounting profession.
Accounting Blockchain Coalition (ABC) is a non-profit, global, industry alliance dedicated to educating businesses and organizations on accounting matters relevant to digital assets and distributed ledger technology, including blockchain. The ABC will provide guidance on best practices and serve as a knowledge-sharing platform as organizations address the sweeping changes and resulting opportunities created by the implementation of blockchain technology. For more information or to join: https://accountingblockchain.net/become-a-member/.
“ABC is focusing on the four key areas we believe are critical for successful deployment and use of blockchains in accounting. These member-driven working groups have come together to help solve the real-world challenges that the ABC anticipates the accounting industry will face as interest and use of blockchains continues to accelerate,” said David Deputy, president, ABC and director, Strategic Development and Emerging Markets, Vertex, Inc. “Knowledge-sharing through the development of educational material, use cases and best practices guides are key outputs of the working groups. Involvement in the working groups will allow ABC members to learn quickly, innovate, test new ideas and help keep their company’s competitive.”
About New ABC Working Groups
- Regulatory Compliance Working Group
The Regulatory Compliance Working Group will review, discuss and share information and guidance regarding compliance with tax and accounting regulations in a new era of distributed ledger technology, blockchains and digital assets. This working group will provide guides and information on requirements on how to register and maintain regulatory compliance and what you need to supply to regulators in addition to information regarding jurisdictions and states regulations.
- Auditing and Accounting Working Group
The Audit and Accounting Working Group will specifically focus on Audit and Accounting challenges and best practices relating to the procedures regarding blockchain technology and digital assets. The introduction of digital assets into the audit and accounting industry open ups questions regarding accounting treatment, recognition, measurement, and disclosure of the different assertions and technical accounting treatment that firms and independent professionals will encounter. Many of the “traditional” methods and procedures around accounting treatment, financial reporting, and financial presentation will change or be affected by digital assets.
- Taxation Working Group
The Taxation Working Group will review, discuss, document and share existing industry best practices for operational process improvement and the tax treatment of digital assets including the impact of token classifications, gains and income from sales/forks/mining, token exchange implications, inventory and valuation methods, tax filings, and jurisdictional variances. The initial focus will be on US tax regimes with the expectation of branching out into international tax regimes initially on a comparative basis.
- Internal Control Working Group
The Internal Controls Working Group will focus on the internal tools and processes companies may want to review to adapt to meet the updates and changes to information systems around the growing industry. The group will also focus on change management and legal compliance.
About The Accounting Blockchain Coalition
The Accounting Blockchain Coalition is an industry association formed to educate businesses and organizations on accounting matters relevant to digital assets and distributed ledger technology, including blockchain. Offering a platform for members to contribute their knowledge and expertise while fostering best practices, the ABC has three levels of membership including Charter, Promoter and Associate. ABC board members include: BDO USA LLP; BPM LLP; ConsenSys; Crowe Horwath LLP; Michigan State University Eli Broad College of Business; Microsoft; RSM US LLP (“RSM”) and Vertex, Inc.
# # #
Bob Olson, Virtual Public Relations
Mary Campbell, Virtual Public Relations