[Federal Register Volume 90, Number 19 (Thursday, January 30, 2025)]
[Rules and Regulations]
[Pages 8492-8493]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-01864]
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SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 211
[Release No. SAB 122]
Staff Accounting Bulletin No. 122
AGENCY: Securities and Exchange Commission.
ACTION: Publication of Staff Accounting Bulletin.
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SUMMARY: This staff accounting bulletin (``SAB'') rescinds the
interpretive guidance included in Section FF of Topic 5 in the Staff
Accounting Bulletin Series entitled Accounting for Obligations to
Safeguard Crypto-Assets an Entity Holds for its Platform Users (``Topic
5.FF'').
DATES: Effective January 30, 2025.
FOR FURTHER INFORMATION CONTACT: Office of the Chief Accountant, at
(202) 551-5300; or Division of Corporation Finance, at (202) 551-3400,
Securities and Exchange Commission, 100 F Street NE, Washington, DC
20549.
SUPPLEMENTARY INFORMATION: The statements in staff accounting bulletins
are not rules or interpretations of the Commission, nor are they
published as bearing the Commission's official approval. They represent
interpretations and practices followed by the Division of Corporation
Finance and the Office of the Chief Accountant in administering the
disclosure requirements of the Federal securities laws.
List of Subjects in 17 CFR Part 211
Accounting, Reporting and recordkeeping requirements, Securities.
Dated: January 23, 2025.
Vanessa A. Countryman,
Secretary.
Accordingly, part 211 of title 17 of the Code of Federal
Regulations is amended as follows:
PART 211--INTERPRETATIONS RELATING TO FINANCIAL REPORTING MATTERS
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1. The authority citation for 17 CFR 211 is amended to read as follows:
Authority: 15 U.S.C. 77g, 15 U.S.C. 77s(a), 15 U.S.C. 77aa(25)
and (26), 15 U.S.C. 78c(b), 15 U.S.C. 78l(b), 15 U.S.C. 78m(b), 15
U.S.C. 80a-8, 15 U.S.C. 80a-29(e), 15 U.S.C. 80a-30, and 15 U.S.C.
80a-37.
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2. Amend the table in subpart B by removing the entry for ``Staff
Accounting Bulletin No. 121'' and adding an entry for ``Staff
Accounting Bulletin No. 122'' at the end of the table to read as
follows:
Subpart B--Staff Accounting Bulletins
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Subject Release No. Date Fed. Reg. Vol. and page
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Publication of Staff Accounting SAB 122.............. January 30, 2025.......... [INSERT FEDERAL REGISTER
Bulletin No. 122. CITATION].
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Note: The text of SAB 122 will not appear in the Code of
Federal Regulations.
Staff Accounting Bulletin No. 122
This SAB rescinds the interpretive guidance included in Topic
5.FF in the Staff Accounting Bulletin Series entitled Accounting for
Obligations to Safeguard Crypto-Assets an Entity Holds for its
Platform Users. Upon application of the rescission of
[[Page 8493]]
Topic 5.FF, an entity that has an obligation to safeguard crypto-
assets for others should determine whether to recognize a liability
related to the risk of loss under such an obligation, and if so, the
measurement of such a liability, by applying the recognition and
measurement requirements for liabilities arising from contingencies
in Financial Accounting Standards Board Accounting Standards
Codification (``FASB ASC'') Subtopic 450-20, Loss Contingencies, or
International Accounting Standard (``IAS'') 37, Provisions,
Contingent Liabilities and Contingent Assets, under U.S. generally
accepted accounting principles and IFRS Accounting Standards,
respectively. Entities should effect the rescission of Topic 5.FF on
a fully retrospective basis in annual periods beginning after
December 15, 2024. Entities may elect to effect the rescission in
any earlier interim or annual financial statement period included in
filings with the Commission after the effective date of this SAB.
Entities should include clear disclosure of the effects of a change
in accounting principle upon initial application of this
rescission.\1\
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\1\ See FASB ASC 250-10-50-1 through 50-3 and IAS 8. See also,
e.g., Item 302 of Regulation S-K [17 CFR 229.302] and PCAOB Auditing
Standard 2820 (par. 8).
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The staff reminds entities that they should continue to consider
existing requirements to provide disclosures that allow investors to
understand an entity's obligation to safeguard crypto-assets held
for others. These requirements include, but are not limited to,
Items 101, 105, and 303 of Regulation S-K; \2\ FASB ASC Subtopic
450-20; \3\ and FASB ASC Topic 275, Risks and Uncertainties.\4\
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\2\ 17 CFR 229.101, 105, and 303.
\3\ See also IAS 37.
\4\ See also IAS 1, Presentation of Financial Statements.
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Accordingly, the staff hereby amends the Staff Accounting
Bulletin Series as follows:
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Topic 5: Miscellaneous Accounting
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FF. Removed by SAB 122
[FR Doc. 2025-01864 Filed 1-29-25; 8:45 am]
BILLING CODE 8011-01-P