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Unfortunately under US accounting rules you have to do it this way in your financial filings.
by rodonn 6y ago
Unfortunately under US accounting rules you have to do it this way in your financial filings.
- woobar 6y agoBut bigger brokers (in fact, much more than just brokers) like Merrill ($18B) or Schwab($10B) do not report their transaction volume as revenue.
- wfleming 6y agoI'm having trouble finding a good citation, but I think the GP is referring to a quirk of US accounting rules that causes crypto trades specifically to be counted as revenue. The same does not apply to traditional financial market trades, which I think is what your numbers are.
- woobar 6y agoBut we are talking about Robinhood here. I doubt they trade $350B worth of crypto.
- skybrian 6y agoWeirdly, it seems there are no GAAP accounting rules for cryptocurrencies yet. Apparently there is informal guidance that it should be treated as an intangible asset: https://news.bloombergtax.com/financial-accounting/tesla-bitcoin-bet-exposes-limits-of-crypto-accounting-rules https://news.bloombergtax.com/financial-accounting/tesla-bit...