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Accounting for Seized and Forfeited Digital Assets

In today's dynamic financial digital landscape, there is emphasis on how the accounting standards can maintain consistency and accuracy across Federal stakeholders.

As federal government agencies like the Department of Justice (DOJ), Department of Homeland Security (DHS), and the Internal Revenue Service (IRS) navigate through this complexity, stakeholders are expecting accurate, timely and comprehensive digital asset information to make informed decisions. Following a rise in seized and forfeited digital assets, the Federal government agencies are raising anticipation of materiality impacting financial reporting.

Historically, the Statement of Federal Financial Accounting Standards (SFFAS) 3, Accounting for Inventory and Related Property did not provide clear guidance to address reporting considerations for seized and forfeited digital assets. The Federal Accounting Standards Advisory Boards determined a new technical bulletin (TB) was necessary to reduce the risks that are inherent to digital assets. 

Here's what Guidehouse experts say financial leaders should know.

 

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