The ASU would also introduce a new disclosure requirement for all entities, regardless of whether they hold any digital assets classified as cash equivalents under the proposed ASU’s illustrative examples. Entities would be required to disclose the significant components (e.g. US Treasury bills, commercial paper, stablecoins, and money market funds) and amounts of their cash equivalents, including any digital assets.
This proposed disclosure would better align with a similar disclosure requirement under IFRS® Accounting Standards. It is designed to enhance transparency and give investors better insights into the nature and risks of these assets.