An Expert Team Waded Through the Barely Charted Territory of Accounting for Digital Assets—and Prepared the Business to Scale as U.S. Listed Company.

At A Glance

Company Type: Public, Midsize

Industry: Financial Services  

Solution Area: Strategic Projects & Technical Accounting

About The Client

Already trading on the Toronto Stock Exchange, a financial services company specializing in cryptocurrencies, digital assets and blockchain technology set its sights  

on the U.S. capital markets. Experiencing significant growth in a super-hot industry, the company foresaw a promising future but would need to overcome several hurdles before it could be considered ready for a U.S. IPO.

Challenge

After undergoing big changes from building up through organic growth and acquisitions, the company faced competing priorities and pressures as it undertook a restructuring effort and planned its next strategic move. Its lean accounting team was expected  

to constantly pay attention to outside advancements as the regulatory framework for NFTs, initial coin offerings, digital assets and the like keep evolving. And there are a ton of rule interpretations in this industry to navigate but limited precedents and guidance to follow.  

The company required an infusion of technical expertise to transition from international financial reporting standards to U.S. GAAP, and to make sense of properly accounting for digital assets.

Solution

Even though expertise in accounting for digital assets is scarce, RoseRyan always has a constant pulse on the latest accounting best practices.  We assembled a team of consultants who quickly got to know the business and addressed its immediate needs:

• Implemented U.S. accounting standards for revenue recognition and leases
• Expertly converted financial statements from IFRS to U.S. GAAP
• Determined the proper accounting treatment for a variety of complex accounting matters, including business combinations, variable interest entities, fair value of equity investments, derivatives and hedging, and credit impairment for loans
• Prepared technical accounting memos for complex transactions, with supporting schedules that the client could maintain going forward
• Developed and documented accounting policies for digital assets
• Drafted financial statements for the company’s SEC registration statement for its U.S. IPO

Results

• Audit-ready financial statements with supporting documentation in a complex industry
• Technical accounting work that stood up to audit scrutiny
• Practical, appropriate accounting policies

ZRG brought in a team of experts for a complex mission:

Manage a full spectrum of cutting-edge accounting issues, in a clear, cohesive manner, under strict deadlines while also setting up the business to scale and flourish. We quickly determined what was needed to scale quickly—and got to work.

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