We are getting somewhere here--
The point is we are supposed to be a self regulated community. If someone wants to be taken serious, they should have to submit to some simple community auditing and regulation.
This will reduce scams, increase profit and therefore increase the future value of Bitcoin
Yes, I agree. I would be very unlikely to invest in a company that is not holding to GAAP standards and is not being regularly audited, or at least very transparent with their reporting. Unfortunately, most of the community does not hold to those sorts of standards, thus the companies do not feel the need to conform to GAAP or audit requests. If this thread is a call to action for investors to demand more transparency in these areas from companies prior to investing in them, then I wholeheartedly agree. Not much can be done besides just talking about it, but hopefully even that will make progress in this area.
The cashflow report should list that in detail.
It is a mandatory part of accounting.
I think you are afraid, that an operator could manipulate USD/BTC to his advantage.
An operator should write his invoices in USD, e.g. if he paid for the electricity in USD.
The company then will compensate him in USD if it has still reserves.
If not the company can convert BTCs into USD and pay out.
If the operating costs are charged on a regular - predetermined date/time, it would also be possible to pay out BTC with a reasonable exchange rate like MtGox/USD from the predetermined date/time.
But that would only be a best practice, I'm not sure if it is reasonable to regulate this so much in detail.
I am not terribly familiar with GAAP in regards to foreign currency, but what you just described doesn't sound like GAAP at all. I would expect revenues/expenses to be recorded in the base currency (i.e., USD) at the time that the revenue/expense is incurred. Any further fluctuations between the time that the revenue/expense is incurred and the time that the exchange is actually made to/from the base currency would be accounted for separately, as something like a gain/loss on currency conversion.
