The U.S. Financial Accounting Services Board (FASB) has passed a unanimous vote to drastically change the way crypto asset values are recorded on publicly traded companies’ balance sheets. Under the new rules, crypto assets will be marked at fair value in companies’ accounting statements, rather than the current model of recording their crypto values at the historical prices they paid for them. This change is expected to make crypto more attractive to hold by exposing big investors to the upside potential of their assets.The rule change will be mandatory for all public and private companies in fiscal years beginning after December 15, 2024. This is a welcome change for MicroStrategy, one of the largest corporate holders of Bitcoin, whose optics have suffered massively under the current ruleset during Bitcoin’s worst quarters. The firm’s CEO has been a vocal advocate for fair value crypto accounting, claiming that it “eliminates a major impediment to corporate adoption of BTC as a treasury reserve asset.”Not all digital assets are covered by the rules, however. Non-fungible tokens (NFTs) are still subject to intangible asset accounting, as are stablecoins (ex. USDT and USDC) and other value-pegged cryptos (WBTC).
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | positive |
| Relevance Score | 10 |
| People | Michael Saylor, Christine Botosan |
| Companies | MicroStrategy, PrimeXBT, Binance, Bloomberg, U.S. Financial Accounting Services Board (FASB) |
| Currencies | Tether, USD Coin, Ethereum, Bitcoin, Wrapped Bitcoin |
| Securities | None |
