Evaluating custody of digital assets

In this Hot Topic, we delve into how an entity assesses the accounting owner of custodied digital assets and when custody is a performance obligation under ASC 606. 

Applicability

All entities that either:

• Engage unrelated custodians to hold their digital assets; or
• Act as a digital asset custodian for individuals or other entities

Relevant dates

• Effective immediately

Topics addressed:

• Accounting ownership of digital assets purchased through a custodial wallet
• Accounting ownership of digital assets controlled by the depositor before transfer into a custodial wallet
• Identifying custodial performance obligations under the revenue standard (ASC 606)
  

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