Big Four Auditor PwC Publishes Crypto Insolvency Guide, Cautions Directors

Big Four audit and consultancy firm PwC Hong Kong has published guidance for financially distressed or insolvent businesses in the crypto sector, Cointelegraph reported. The document, released February 2019, tackles the complexities specific to the nascent industry, in particular in regard to asset valuation and multi-jurisdictional operations. PwC notes that the two parameters used to determine a company’s financial viability — cash flow and balance sheet assessment — may be more difficult to ascertain in the case of crypto assets, whose volatility complicates a clear-cut valuation…Once a company’s financial standing is in jeopardy, the auditor notes, directors’ duties shift from serving the best interests of their shareholders to those of their creditors, which become paramount. Read more