New Principal Market Analysis Tool Aligns with Fair Value Accounting, Offering Unmatched Precision and Compliance.
NEW YORK, Aug. 7, 2024 -- TaxBit, the leader in digital asset accounting and tax solutions, has just set a new industry standard by launching its enterprise-grade pricing feature within the TaxBit Accounting Suite. TaxBit's Principal Market Analysis (PMA) support tool, a first-of-its-kind solution, enhances accuracy, reduces manual efforts, and ensures compliance with evolving accounting standards, including the recent FASB ASU 2023-08 guidance.
Under the new fair value accounting rules — enforced by the latest FASB ASU 2023-08 guidance — companies will face increased scrutiny from auditors and external regulators on the source of their pricing data. Guidance in ASC 820 explains how companies should perform an analysis to determine the appropriate pricing source for fair value measurements. Additionally, Question 18 of the AICPA's Digital Asset Practice Aid clarifies that companies should not be using pricing aggregators, making the need for precise, auditable data more critical than ever.
As a result, enterprises need to perform an analysis to determine which specific exchange they should pull pricing from when determining crypto fair value measurements. TaxBit's PMA support tool equips companies with the resources to justify price selections from particular exchanges. This feature allows businesses to integrate robust pricing support and tailor solutions to meet unique needs, ensuring precision and compliance with fair value accounting. Notably, PayPal is leveraging TaxBit's PMA support tool to integrate robust pricing support into their operations, tailoring solutions to meet their unique needs.
Key Features and Benefits:
- Robust Pricing Support: Offers comprehensive coverage of assets and exchanges, leveraging TaxBit's industry-leading pricing data.
- Enhanced Accuracy: Reduces manual efforts in pricing asset portfolios, ensuring accurate and compliant fair value calculations.
- Detailed Analysis: Empowers companies to enact policy elections for how their Principal Market is determined; companies can select the time frame, assets, exchanges, and types of trading activities that are relevant to them.
- Seamless Integration: Easily integrates with existing accounting workflows, allowing users to select principal markets, override default prices, and export results with a few clicks.
Aaron Jacob, VP of Accounting Solutions at TaxBit, commented, "Under the new fair value framework, companies need a solution that provides accurate pricing and quantifiable evidence supporting where the price is coming from in an audit-ready manner. TaxBit's new PMA feature does just that and empowers companies to know the most appropriate pricing source for their portfolio. This tool revolutionizes how businesses handle fair value accounting, making it more efficient and accurate."
TaxBit's new pricing feature is now available to users within the TaxBit Accounting Suite. For more information, please visit taxbit.com/accounting-request-demo/.
About TaxBit
Designed by CPAs and tax attorneys, TaxBit is the digital economy's leading tax and accounting compliance solution. Our end-to-end platform, tailored for enterprises, financial institutions, and government bodies, streamlines compliance while ensuring accuracy. TaxBit is SOC 1 Type 1, SOC 2 Type 2 attestation and ISO 27001 certified. TaxBit has secured over $235 million from leading global investors, including Ribbit, IVP, Paradigm, Haun Ventures, and PayPal Ventures. TaxBit is headquartered in Draper, Utah, with offices in Salt Lake City, San Francisco, Seattle, New York, and Washington, D.C. For more information, please visit www.taxbit.com.
For media inquiries, please contact:
Michelle O'Connor
VP of Global Communications and Marketing
michelle@taxbit.com
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