KPMG Canada, a division of one of the largest accounting firms globally, has completed an allocation of crypto assets to its corporate treasury, the firm’s first direct investment in crypto assets.
KPMG in Canada acquired Bitcoin and Ethereum on its balance sheet through Gemini Trust Company LLC’s execution and custody services.
This decision reflects KPMG Canada’s belief that these cryptocurrencies as a “maturing asset class” can be interpreted in International Financial Reporting Standards (IFRS). Their presence on the balance sheet does not contradict the accounting policies of corporate clients.
By doing so, KPMG Canada indirectly forms the practice for the preparation of subsequent audit reports. KPMG said it “did a thorough risk assessment,” including an assessment of the tax implications, before deciding to add digital assets to the company’s balance sheet.
The press release writes:
“KPMG established a governance committee to provide oversight and approve the treasury allocation. The committee included stakeholders from Finance, Risk Management, Advisory, Audit, and tax. It undertook and completed a rigorous risk assessment process that included a review of regulatory, reputational, and custodial risks. KPMG specialists also assessed the tax and accounting implications of the transaction.”
Kareem Sadek, Advisory Partner, Cryptoassets and Blockchain Services co-leader, KPMG in Canada, said:
“The crypto asset industry continues to grow and mature, and it needs to be considered by financial services and institutional investors.”
A study by the Association of Certified Professional Accountants of Canada (CPA) notes that accounting policies that are acceptable for BTC and ETH will not be suitable for other cryptocurrencies, as they “have different characteristics.”
Following the latest edition of the Conceptual Framework, cryptocurrency can be considered “an active economic resource that gives the potential right to receive economic benefits.”
Recall that in February last year, KPMG, together with BitGo and Coin Metrics, announced the release of a set of products for identifying and managing risks in public blockchains.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
