Staff Accounting Bulletin No. 122 (SAB 122) is a directive issued by the U.S. Securities and Exchange Commission (SEC) that rescinds the previous guidance provided in SAB 121. This module aims to educate users about SAB 122, its implications, and the changes it introduces in accounting for crypto-assets.
Q1: What is the primary purpose of SAB 122?
A1: To rescind the guidance provided in SAB 121
Q2: Which of the following was a requirement under SAB 121?
A2: Recording safeguarding obligations as liabilities at fair value
Q3: How does SAB 122 affect the accounting treatment of safeguarding obligations?
A3: It allows entities to use their own risk assessments
Q4: What was a concern that led to the rescission of SAB 121?
A4: Increased balance sheet liabilities for institutions
