Blockchain is a digital ledger of transactions. Instead of everyone keeping their own records, it is mutual, with everyone involved sharing the same ledger of transactions. It operates by consensus, so if all parties agree that a transaction is legitimate, it is then added to the chain and cannot be altered after the fact.

Through its technology arm, CPA.com, the AICPA will administer the WSBA’s working group on tax and accounting. The two bodies intend to use methods such as webcasts and roundtables to address issues arising from the adoption of blockchain, distributed ledgers and smart contract technologies.

As a first step in collaboration, the AICPA will be part of an accounting-related panel at the WSBA’s Blockchain for Wall Street education day on 14 November 2017 at New York Law School.

‘The accounting profession is built on confirmation and verification, and that’s what blockchain is all about,’ said AICPA president and chief executive Barry C Melancon, CPA, CGMA. ‘This technology can have a profound impact on accounting and finance going forward, and it’s important we make sure that its adoption proceeds in a way that’s in the best interest of the public and our financial markets.

‘Our working relationship with the WSBA, combined with our expanded global reach through the Association of International Certified Professional Accountants, will help further that goal.’

Ron Quaranta, chairman of the WSBA said: ‘The WSBA is very pleased to be collaborating with the AICPA and CPA.com to guide the evolution of the global accounting profession in a future with blockchain technology.

‘We look forward to working together to advance the world of accountancy and its use of blockchain, as accountants become integral participants in the adoption of this innovative technology for global markets.’

Report by Calum Fuller