Key Takeaways
- • The Governmental Accounting Standards Board added digital assets and pension/post-employment benefits disclosure to its research agenda, aligning with parallel work by the Financial Accounting Standards Board on cryptocurrency and stablecoin standards.
- • GASB will examine how state and local governments use digital assets—including pension fund cryptocurrency investments and potential stablecoin issuance—and determine what implementation guidance or new standards are needed beyond existing fair value frameworks.
- • The board rejected adding a cybersecurity disclosures research project, narrowing the scope of its current agenda expansion to focus on digital assets and benefit plan accounting.
- • GASB Chair Joel Black indicated that existing Statement 72 fair value guidance may require supplemental implementation guidance for governments managing digital assets, with potential future projects on stablecoin classification and cryptocurrency handling.
Summary
The Governmental Accounting Standards Board has broadened its standard-setting agenda to address emerging issues in digital assets and post-employment benefit accounting, reflecting the growing involvement of state and local governments in cryptocurrency and blockchain-based financial instruments. During a recent board meeting, GASB added research initiatives on digital assets to its formal research agenda while declining to pursue a separate cybersecurity disclosures project.
The digital assets research initiative follows work already underway at the Financial Accounting Standards Board, which has been developing guidance on cryptocurrency asset transfers and stablecoins functioning as cash equivalents. GASB Chair Joel Black explained that state and local governments are increasingly engaging with various types of digital assets, necessitating a comprehensive examination of current standard-setting gaps. The research will focus on identifying which digital assets are actively being used by state and local governments and determining what additional guidance or standards are required.
Black outlined several potential use cases driving the research, including pension funds' cryptocurrency investments and the possibility of governments issuing stablecoins. While GASB's existing Statement 72 already addresses fair value measurement applicable to digital assets, Black indicated that targeted implementation guidance may be necessary to help governments navigate specific digital asset scenarios. The board may ultimately undertake standard-setting projects addressing stablecoin classification and improved guidance on how governments should account for and report cryptocurrency holdings.
Additionally, GASB added a research project on pension and other post-employment benefits (OPEB) disclosure stemming from post-implementation reviews of existing standards. Black noted that the pension standards review is complete, with the OPEB standards review nearing completion, informing the new disclosure-focused research agenda.
The digital assets research initiative follows work already underway at the Financial Accounting Standards Board, which has been developing guidance on cryptocurrency asset transfers and stablecoins functioning as cash equivalents. GASB Chair Joel Black explained that state and local governments are increasingly engaging with various types of digital assets, necessitating a comprehensive examination of current standard-setting gaps. The research will focus on identifying which digital assets are actively being used by state and local governments and determining what additional guidance or standards are required.
Black outlined several potential use cases driving the research, including pension funds' cryptocurrency investments and the possibility of governments issuing stablecoins. While GASB's existing Statement 72 already addresses fair value measurement applicable to digital assets, Black indicated that targeted implementation guidance may be necessary to help governments navigate specific digital asset scenarios. The board may ultimately undertake standard-setting projects addressing stablecoin classification and improved guidance on how governments should account for and report cryptocurrency holdings.
Additionally, GASB added a research project on pension and other post-employment benefits (OPEB) disclosure stemming from post-implementation reviews of existing standards. Black noted that the pension standards review is complete, with the OPEB standards review nearing completion, informing the new disclosure-focused research agenda.
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