Category Archives: News / Updates

Exposure Draft – Accounting for Crypto Assets

Under current GAAP, in general, crypto assets are accounted for as indefinite-lived intangibles assets.  These assets are initially recorded at cost and subject to impairment testing, and upward adjustment is prohibited.   In other words, if the price of the cryptocurrency goes up or if a cryptocurrency that was previously written-down subsequently recovers, it cannot be written up.

FASB believes that the current accounting treatment of crypto assets does not provide investors, lenders, creditors and users of financial statements with decision-useful information (the underlying economics of these assets and an entity’s financial position).  In order to address these concerns, the Board has issued the proposed Update to improve the accounting for and disclosure of certain crypto assets.

Under the proposed Update, when adopted, would require that an entity measure certain crypto assets at fair market value in the balance sheet and recognize changes in fair value in net income.  The proposed Update also would require that an entity provide enhanced disclosures for both annual and interim reporting periods.  The proposed Update would require a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the annual reporting period in which an entity adopts the proposed Update.  The Board will determine the effective date after it considers stakeholders’ feedback on the proposed Update.

Link to FASB’s Exposure Draft Proposed Accounting Standards Update—Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Asset (

Beneficial Ownership Information Reporting

Final regulations under IRC section 6403 require disclosures of the beneficial owners of the entity and individuals who have filed an application with specified governmental authorities to create the entity or register it to do business in the United States to FinCEN.  The final regulations become effective January 1, 2024 requiring many corporations, limited liability companies, and other entities created in or registered to do business in the United States to report beneficial ownership information.

These requirements are intended to help prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity, while minimizing the burden on entities doing business in the United States.

Prior to adopting the final regulations, it was possible for individuals to use entities such as corporations, trusts, or partnership to hide their ownership of foreign bank accounts.  However, under the new beneficial ownership information reporting requirement for FBAR (Foreign Bank Account Report), the FinCEN requires that individuals disclose beneficial ownership information for these entities.  This means that applicable entities must provide information about any person who owns or controls the entity, including their name, address, and identification number, if applicable.  The purpose of this requirement is to increase transparency and prevent individuals from using entities to hide their ownership of foreign bank accounts.

Under the final regulations, a beneficial owner includes any individual who, directly or indirectly, either exercises substantial control over a reporting company, or owns or controls at least 25% of the ownership interests of a reporting company.  The terms substantial control and beneficial owner further defined in the final regulations.

2022-21020.pdf (

The IRS Criminal Investigation Division Begun Investigating Excessive or Frivolous ERC Claims (Korean Version)

CARES(Coronavirus Aid, Relief, and Economic Security) 법에 따라 2020년에 설립된 ERC 2020 3 13일부터 2021 12 31 사이의 기간 동안 COVID-19 팬데믹으로 인해 운영을 중단했거나 수입이 크게 감소한 사업체 직원에게 급여를 지급한 사업체에 한해 환급이 가능한 세금 크레딧이다.

IRS 2023 3 7일에 발행된 IR-2023-40에서 고용주 사업체들에게 세금 공제 자격이 없음에도 불구하고 직원 유지 크레딧(ERC) 청구하도록 조언하는 3(3rd party) 경계하라는 경고를 다시 발행했다. 일부 3자는 세액공제에 대한 납세자 자격 계산과 관련하여 부적절한 조치 입장을 취하고 있다.

이러한 3자는 환급 금액에 따라 선불 또는 성공보수형 수수료를 부과할 아니라 사업체의 연방 소득세 신고서(Federal income tax return) 청구된 임금 공제(Wage deduction) 세액 공제 금액만큼 감소되어야 한다는 사실을 사업체 납세자에게 알리지 않을 있다.

따라서, 사업체는 비약적인 절세를 약속하는 허위광고 접근을 주의할 것을 권장한다. 납세자(사업체) 항상 세금 신고서에 보고 기록된 정보에 대한 책임이 있다. ERC 부적절하게 청구하게 경우 납세자는 과징금 이자와 함께 공제액을 상환해야 한다.

추가적으로 IRS 범죄 수사부와 법무부는 범죄 수사를 시작했으며 과도하거나 부적절한 ERC 발기인 기타 조력자에 대한 기소를 시작하였다.

ERC 혜택을 받았지만 자격 또는 청구 금액에 대해 확신이 없는 경우 세무 고문이나 변호사와 상의하여 자격 크레딧 금액 결정에 사용된 계산에 대한 검토가 필요하다. ERC 크레딧을 청구할 오류나 부적절한 조치가 있다고 판단할 경우, 수정 보고서 또는 IRS 자발적으로 신고하여 리스크를 manage 하는 고려할 필요가 있다.

Exposure Draft of a Proposed Accounting Standards Update requiring targeted improvements to Income Tax Disclosures

The Financial Accounting Standards Board (“FASB”) issued an exposure draft of a proposed accounting standards update that would require targeted improvements to income tax disclosures in financial statement report (the “Proposed ASU”).  The Proposed ASU addresses investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation, income taxes paid information and disaggregated disclosure of income and tax expense by jurisdictions.  Here is summary of the changes contained in the Proposed ASU:

Income Taxes Paid

The Proposed ASU would require that all entities disclose the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid on both an interim and annual basis.

Rate Reconciliation

The Proposed ASU would require public business entities on an annual basis disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the statutory tax (that is, pretax income or loss multiplied by the applicable statutory tax rate).  The specific categories include state and local income tax; foreign tax effects; enactment of new tax laws; effect of cross-border tax laws; tax credits; valuation allowance; nontaxable or nondeductible items; and change in unrecognized tax benefits.

For entities other than public business entities, the Proposed ASU would require qualitative disclosure about specific categories of items and individual jurisdictions that result in a significant difference between the statutory tax rate and the effective tax rate.

Disaggregated Disclosure

The Proposed ASU would require all entities to disclose pretax income (or loss) from continuing operations disaggregated between domestic and foreign jurisdictions and disclose income tax expense (or benefit) from continuing operations, disaggregated by federal, state, and foreign taxes.

Transition and Effective Date

The Proposed ASU would be applied on a retrospective basis, that is, as of beginning of the earliest period presented in the financial statements.  The effective date of the Proposed ASU would be determined after the FASB considers stakeholder feedback.


To read the exposure draft of the Proposed ASU, please clink the link below:

Proposed Accounting Standards Update—Income Taxes (Topic 740): Improvements to Income Tax Disclosures (