Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 317

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 317
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2023 using a modified retrospective approach. In connection with the adoption, the Company recorded
$1.0 million of incremental credit losses with a charge to opening retained earnings at January 1, 2023.

F-23

CONFIDENTIAL TREATMENT REQUESTED BY CIRCLE INTERNET GROUP, INC. PURSUANT TO 17 C.F.R. § 200.83

In January 2025, the SEC published Staff Accounting Bulletin No. 122 (“SAB
122”) to rescind the previously issued Staff Accounting Bulletin No. 121 (“SAB 121”). SAB 121 required the recognition of a liability and an offsetting asset, both measured at fair value, for its obligation to safeguard digital assets
on behalf of customers. The Company early adopted SAB 122 retrospectively for the consolidated balance sheets as of December 31, 2023 and 2022. The adoption of SAB 122 resulted in the derecognition of $524.2 million and $722.4 million of Assets
related to safeguarding obligations and Obligations related to safeguarding digital assets on the Consolidated Balance Sheets as of December 31, 2023 and 2022, respectively. The adoption had no effect on operating income from continuing operations,
net income, or comprehensive income for the years ended December 31, 2023 or 2022 or total stockholders’ equity as of December 31, 2023 or 2022.

Recently issued accounting pronouncements

In November 2023, the FASB
issued Accounting Standards Update No. 2023-07, Improvements to Reportable Segments Disclosures (“ASU 2023-07”). ASU
2023-07 requires public entities to provide disclosures of significant segment expenses and other segment items. The standard allows entities to disclose more than one measure of segment’s profit or loss
if such measures are used by the CODM to allocate resources and assess performance, as long as at least one of those measures is determined in a way that is most consistent with the measurement principles used to measure the corresponding amounts in
the consolidated financial statements. The new standard is effective retrospectively for the Company for its fiscal year beginning January 1, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted. The
Company expects that this standard will only impact disclosures and is currently evaluating the impact of adopting the standard on the Company’s consolidated financial statements.

In December