Digital assets guidance
Due to continuing questions by entities about the scope and applicability of the guidance within SAB 121, in June 2022, the AICPA issued an update to its Practice Aid, “Accounting for and Auditing of Digital Assets,” which includes responses to frequently asked questions about SAB 121. Among other items, the responses provide guidance on what entities should consider in determining whether they have a safeguarding obligation subject to SAB 121 and how safeguarding liabilities are reflected in an entity’s financial statements.