GAAP Compliance Confirmation for Vinter's Crypto Asset Reference Rates

2024-02-24

The index committee has conducted a GAAP compliance review of Vinter's reference rates.

Key Takeaways:

• Fair Value Measurement Alignment: Vinter's reference rates—VFIX, VAP, BRR, and VFAIR—align with the fair value measurement principles outlined in ASC 820. Using quoted prices, median prices, volume-weighted median prices, and outlier detection mechanisms ensures the rates reflect market conditions and use observable inputs.

• Compliance with International Standards: Vinter's reference rates comply with the IOSCO Principles for Financial Benchmarks and the European Benchmarks Regulation (BMR), which share objectives with ASC 820, such as the emphasis on observable inputs, transparency, governance, consistency, and comparability.

• Benchmark Validation: The report validates Vinter's reference rates, highlighting the use of techniques that minimize the impact of erroneous data points and ensure the rates reflect market conditions.

• Alignment with Market Standards: T-tests comparing Vinter's BTC and ETH reference rates to other GAAP-compliant market rates confirm their similarity.

• Adherence to Updated FASB Standards: The report affirms that Vinter's practices concerning the fair value measurement of its crypto asset reference rates align with the requirements specified in ASU 2023-08, enhancing financial transparency and accuracy.

The index committee's review confirms that Vinter's practices for measuring, presenting, and disclosing its crypto asset reference rates' fair value align with GAAP requirements. Vinter upholds governance standards of transparency and data integrity to ensure the accuracy and reliability of its reference rates.

To access the full GAAP compliance report, click here.