Getting to Know ICOs: Case-Studies
for Accounting & Tax Considerations
Presentation Date & Time:
October 16, 2018 - 2:00 PM
Partner - International Technology & Blockchain
Assurance Senior Manager - Technology & Blockchain
Organization: Aprio, LLP
Presentation Description: There's a lot of confusion surrounding Initial COIN Offerings... ICOs. Overall, ICO transaction volume continues to grow exponentially along with volatility. Organizations that issue tokens need to understand the accounting and audit considerations to manage risk and safeguard value. Since ICOs are a relatively new way to raise capital there are numerous questions that should be addressed such as:
- What are some of the challenges and best practices of the ICO process?
- Are ICO proceeds treated as revenue, equity or liability for GAAP & tax purposes?
- What are ICO tax, accounting, security and internal control considerations?
- How are tokens treated for tax purposes when they are transferred to employees and/or non-employees?
- Can you value a token that is issued to employees / 3rd parties before an ICO?
- Can tokens be automated and integrated with an ERP / Accounting software?
By leveraging over five years of blockchain and ICO experience, Mitchell & Jagruti will discuss the basics of an ICO and several case-studies. Once ICOs are defined, this session will touch upon more sophisticated ICO topics such as the accounting / tax ramifications of SAFT, atomic swaps, forks & airdrops.
Mitchell Kopelman Biography:
Mitchell is the partner-in-charge of Aprio’s Tax practice as well as the Technology & Blockchain group. He has been a partner since 1990 with Aprio, which is the largest Georgia-based tax, accounting and consulting firm. Mitchell works with companies in the software, gaming, clean tech, financial technology (FinTech), health care IT, processing, biosciences (biotech and medical device) and manufacturing industries. Whether a company is pre-revenue, starting up, growing or preparing for a liquidity event, Mitchell works with them to maximize their potential at each stage. He is known for promoting research, innovation and entrepreneurship by enabling companies to be successful, regardless of where they are in their business lifecycle.
Mitchell brings to companies innovative tax strategies, like federal and state Research & Development (R&D) Tax Credits, many of which can be monetized. In addition, he has strong mergers and acquisitions experience that includes structuring financial and tax due diligence as well as analysis of transactional accounting and tax issues. He also has extensive experience working with domestic and international companies, addressing inbound and outbound tax issues as well as other related business activities, like organizational structure, transfer pricing, joint ventures, stock options and accounting for income and uncertain tax positions.
With the emergence of blockchain and cryptocurrencies, Mitchell has been instrumental in developing and leading our blockchain practice. While he focuses on the domestic and international related tax issues, others on the team focus on accounting, audit and security blockchain matters.
Mitchell was recognized by the National Academy of Public Accounting Professionals as a Top 10 Public Accounting Professional in Georgia for 2014. He earned a Bachelor of Business Administration degree in Accounting from the School of Accountancy at Georgia State University in Atlanta. His professional involvement includes:
- Southern Capital Forum – Treasurer
- Atlanta Chamber of Commerce – Board of Advisors and Technology Marketing Council
- American-Israel Business Connector (Conexx) – Board member and former executive committee member
- Alef Fund, Inc. – Past president and board member
- Frequent articles author and speaker on business topics, ranging from mergers and acquisitions to equity incentives, venture capital, private equity transactions and complex tax regulation and issues
Jagruti Solanki Biography:
Jagruti is an assurance senior manager at Aprio. Prior to joining Aprio, Jagruti worked as an auditor at Maganlal Thacker & Co (a member company of Alliott Group, UK) a Chartered Accountancy firm based in Oman.
She has worked for the firm since November 2007, specializing in manufacturing and technology, including fintech (SaaS, software, blockchain). Jagruti is one of the leaders in the firm’s blockchain practice with a focus on accounting and auditing.
She has dealt with issues in revenue recognition, business combinations, consolidations, variable interest entities, capitalization of intangible assets and software development costs, fair value accounting, discontinued operations, troubled debt restructure, share-based compensation, alternative financial instruments including hedge funds and other derivatives, and audits of cryptocurrencies/blockchain. She is specifically focused on working with software companies and assisting them with assessing the impact of the new revenue recognition standard. Additionally, she has experience in risk assessment, identifying and testing internal controls over financial reporting, researching complex technical accounting matters and drafting technical accounting memos. Jagruti writes articles, whitepapers and blogs around revenue recognition and regularly conducts webinars and implements case studies with strategic revenue recognition partners.
Jagruti received her Bachelors of Commerce in Advanced Accounting and Post-Graduate Diploma in Finance from India. She graduated with her MBA in Management Accounting from Iowa. She holds a CPA in the State of Georgia.
Jagruti’s professional affiliations include:
- American Institute of Certified Public Accountants
- Georgia Society of Certified Public Accountants
- The Institute of Internal Auditors