In a business environment that’s changing rapidly,even the currency used to pay for transactions is evolving in ways that challenge accountants and auditors. The growing popularity of various forms of digital (or crypto) assets has required many CPAs to consider how to appropriately account for them under GAAP. Questions and answers related to this issue are included in a free practice aid published Monday by the AICPA that provides nonauthoritative guidance on how to handle accounting questions related to digital assets. The practice aid addresses 10 questions about how to account for digital assets under GAAP. The guide defines digital assets broadly as “digital records, made using cryptography for verification and security purposes, on a distributed ledger” (referred to as a blockchain). Digital assets are used for a variety of purposes, including as a medium of exchange, as a representation to provide or access goods or services, or as a financing vehicle, such as a security, among other uses. “This represents a great first step in addressing some of the most frequent accounting questions that people have been asking,” said Matthew Schell, CPA, a partner with Crowe LLP and co-chair of the AICPA Digital Assets Working Group, which produced the guide. “While we haven’t solved everything, we are making progress in providing needed guidance.” The AICPA formed the Digital Assets Working Group as a joint working group under the Financial Reporting Executive Committee and the Assurance Services Executive Committee. The working group consists of two subgroups — one focused on accounting topics, the other on auditing topics. The accounting subgroup was tasked with developing nonauthoritative guidance on accounting for digital assets and related transactions under GAAP. The guidance is intended for financial statement preparers and auditors with a fundamental knowledge of blockchain technology