FASB is seeking feedback on a proposal that would clarify whether stablecoins and certain other digital assets can be treated as cash equivalents under current accounting rules.
Stakeholders have until Nov. 19 to comment on the proposed Accounting Standards Update (ASU). The proposal responds to uncertainty over whether some digital assets meet the current definition of cash equivalents under US GAAP.
The proposal would provide examples to help companies apply the rules more consistently and improve comparability between companies that classify qualifying digital assets as cash equivalents. It would not change the existing definition of cash equivalents.
FASB also wants companies to provide more detailed disclosures about significant cash-equivalent holdings, whether or not they include digital assets. The changes are aimed at giving investors clearer information about the assets companies hold.
Salo named next FASB chair
Hillary Salo, currently FASB’s vice chair, will become the board’s next chair when Richard Jones’ term ends in 2027, the Financial Accounting Foundation (FAF) said.
Salo, a former KPMG audit partner, will serve as chair from July 1, 2027, through June 30, 2034.
FAF is also looking for candidates to fill the FASB board seat Salo will leave, as well as another position that will become vacant next year.
The foundation also appointed Christopher Hatto, Kevin McBride, David Miller and Robert Poynter as new trustees. They will begin five-year terms in 2027.
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