What are the benefits of using the modified accrual basis of accounting in the cryptocurrency industry?

1 answers

• May 06, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recognizes the benefits of using the modified accrual basis of accounting in the industry. It ensures accurate financial reporting by recognizing revenues when they are earned and expenses when they are incurred. This helps in providing transparency and reliability to the financial statements, which is crucial for building trust with investors and stakeholders. Additionally, the modified accrual basis enables better tracking and management of assets and liabilities, ensuring that the financial statements reflect the true value of the company's holdings. It also facilitates better budgeting and forecasting, allowing the company to make informed decisions based on a realistic view of its financial position. Overall, the modified accrual basis of accounting plays a significant role in strengthening the financial reporting practices in the cryptocurrency industry.
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