Today, the Financial Accounting Standards Board (FASB) announced new rules that will require companies to account for cryptocurrencies like Bitcoin at fair value. The rules are set to go into effect on December 15, 2024, but companies will be able to apply them earlier than that.
Under the new guidelines, which are the first of their kind in the United States, businesses will need to disclose the value of cryptocurrencies based on their market prices at the end of each reporting period. This move aims to provide greater transparency and accuracy in financial reporting, acknowledging the volatile nature of digital assets like Bitcoin.
Previously, the old treatment accounted for Bitcoin as an intangible asset, which meant if the price went lower than what companies bought it for, they had to take an impairment charge on their books, even if they didn’t sell. But if the price went up, they couldn’t receive any benefit on their books unless they sold. Now, with fair value accounting, per
We współpracy z: https://bitcoinmagazine.com/markets/bitcoin-and-crypto-to-be-measured-at-fair-value-under-new-fasb-rules
