Industries

Helping clients meet their business challenges begins with an in-depth understanding of the industries in which they work. That’s why KPMG LLP established its industry-driven structure. In fact, KPMG LLP was the first of the Big Four firms to organize itself along the same industry lines as clients.

How We Work

We bring together passionate problem-solvers, innovative technologies, and full-service capabilities to create opportunity with every insight.

Learn more

Careers & Culture

What is culture? Culture is how we do things around here. It is the combination of a predominant mindset, actions (both big and small) that we all commit to every day, and the underlying processes, programs and systems supporting how work gets done.

Learn more

SAB 121: Questions & Answers

Hot Topic | March 2023

Latest edition: We answer key questions about the SEC’s guidance on digital asset safeguarding obligations.

bank vault

Updated to include new Q&As, this Hot Topic addresses how to apply the SAB 121 on obligations to safeguard digital assets for others.

Applicability

SAB 121 applies to financial statements prepared under either US GAAP or IFRS® Accounting Standards for:

  • Existing registrants
  • Entities that have submitted or filed a not-yet-effective registration statement
  • Other entities as specified by the SAB

Relevant dates

Existing registrants apply SAB 121 to financial statements for interim and annual periods ending after June 15, 2022, with retrospective application to the beginning of the fiscal year, at a minimum.

Other entities subject to SAB 121 apply it in their next submission or filing. Retrospective application is required to either:

  • the beginning of the most recent annual period ending before June 15, 2022, when a subsequent interim period is presented; or
  • the beginning of the two most recent annual periods ending before June 15, 2022, when a subsequent interim period is not presented.

Key impacts

An entity that hold digital assets for others recognizes (1) the digital assets and (2) a liability to return those assets if it ‘controls’ them.

If the entity does not control the safeguarded digital assets, it recognizes the following under SAB 121:

  • a liability for its obligation to safeguard the digital assets held, reflective of unique risks and uncertainties the SEC staff believes are present in these arrangements; and
  • a corresponding safeguarding asset.

The safeguarding obligation liability is measured initially and subsequently at the fair value of the digital assets held in custody. The safeguarding asset is measured in the same manner, but adjusted for any loss (or potential loss) events.

Report contents

  • Introduction
  • Applicability
  • In a snapshot
  • Effective date and transition
  • Questions and answers

Meet our team

Image of Scott Muir
Scott Muir
Partner, Dept. of Professional Practice, KPMG US
Image of Chase Stobbe
Chase Stobbe
Partner, Dept. of Professional Practice, KPMG US

Accounting Research Online

Access our accounting research website for additional resources for your financial reporting needs.

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's Privacy Statement.

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline