Proprietary crypto asset pricing data to enhance asset valuations for clients
Lukka, the leading crypto asset software, and data provider announced today that RSM US LLP (“RSM”) will employ Lukka’s proprietary crypto asset pricing data to enhance its valuation processes. RSM, the nation’s leading provider of audit, tax, and accounting services focused on the middle market, will use Lukka Prime Pricing data to evaluate the crypto asset holdings of their clients.
Lukka Prime is the world’s first Fair Market Value pricing data for crypto-assets. It features the same pricing methodology that will be used by S&P Dow Jones Indices (S&P DJI) for the construction of their crypto-asset indices. With Lukka Prime, RSM can apply Fair Market Value determinations to their clients’ crypto asset holdings when appropriate under the accounting principles generally accepted in the United States of America (the U.S. GAAP) or the International Financial Reporting Standards (IFRS). Prime’s methodology determines a crypto asset’s principal market at any time of the day, then uses exchange executed prices from that principal market to determine Fair Market Value of the asset in question. The methodology covers more than 875 of the most liquid crypto assets. Fair Market Value pricing allows businesses to more accurately value crypto assets, which greatly increases reporting accuracy to reduce risk across the organization.
“RSM is a clear leader with deep experience serving the crypto industry,” said Robert Materazzi, CEO at Lukka. “Their diligence when performing vendor assessments is some of the most mature that I have seen. At Lukka, data quality is a top priority and we are proud to have our data selected by RSM again to support their crypto valuation processes.”
Volume weighted average prices (VWAPs) and other average-price methodologies are the most commonly used form of crypto asset pricing data, however, VWAPs and other averages do not accurately represent executable market prices and, therefore, may differ significantly from the price that one would receive at a trading venue. Lukka Prime’s Fair Market Value methodology uses qualitative and quantitative factors to first determine a crypto asset’s principal market, then pulls executed prices from that market to assign as an asset’s Fair Market Value. Lukka Prime is quickly gaining recognition as the leading solution for businesses that must report crypto asset valuations on financial statements and internal audit documentation.
“Lukka’s team demonstrated their thorough understanding of the valuation requirements under fair value and further supported this through their quality data analytics”Arlene Towarnicke, Director, Valuation Services at RSM
Last year, Lukka was chosen by RSM as the preferred provider of tax preparation software for its clients. This included LukkaTax for Professionals software for CPA-assisted tax filing for crypto assets. With this announcement, the firms are expanding their already successful relationship.
“As RSM’s digital asset client base continues to grow, Lukka has been able to provide RSM with the tools and data needed to best serve our middle market clients,” said Jay Schulman, RSM’s National Leader, Blockchain and Digital Assets.
Lukka, which has recently announced notable partnerships with S&P DJI and IHS Markit involving its data products, will now supply RSM’s valuation practice with Lukka Prime, the world’s first Fair Market Value pricing data for crypto assets.