SEC chief accountant warned ICO participants not to take care of the financial statements


nnnAfter the release of some ICO tokens belong to the securities, the SEC once again sounded, for the ICO made some financial statements on the views. The agency’s chief accountant at a meeting listed a series of ICO issuers and holders need to seriously consider the issue. Facts have proved that the regulation of ICO will become more stringent, if the relevant financial statements of the problem, then the participants may encounter more trouble.n
nnTranslated by: Inan
nThe chief accountants of the Securities and Exchange Commission (SEC) warn companies involved in ICO to pay attention to fulfilling their financial statements.n
nWesley Bricker, chief accountant from the agency last year, made a speech before the start of the National Conference on AICPA Banking and Savings in Washington, DC, on September 11th. His speech was published by the SEC, covering a number of areas, and at the end of the mentioned ICO.n
nAfter reaffirming SEC’s July issue, Bricker raised a series of financial statements that merited ICO issuers and holders to think about it, as the Federal Securities Act might apply to some ICOs.n
nIssues related to the issuer include:n
nnAre there any debt that needs to be recognized or disclosed?n
nDoes it involve terms of income tax?n
nWhether previously approved assets need to be approved?n
nAre there any income or expenses that need to be recognized or postponed?n
nIs there a transaction with the owner that has resulted in debt or equity classifications and possible compensation costs?n
nWhat are the required financial statements?n
nnSimilarly, he also advises investors and tokens to ask the following questions:n
nnDoes the specific accounting guidance (such as an investment company) apply to the holder’s financial statements?n
nWhat are the characteristics of the token, what is the value of the impact of the transaction on the financial statements of the holder and how it affectsn
nWhat is the nature of the participant’s participation, and whether the issuer’s activities should be consolidated or explained under the equity method?n
nnBricker finally warned that these are just “sample questions” and that, according to the SEC’s previous statement, the details of the ICO itself will determine which reporting requirements it must meet.n
nHe told participants: “Entities involved in ICO activities need to consider the necessary audits, disclosures and reporting guidance based on their participation.”n

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