Bitcoin Will Switch to Fair Value Accounting, Will Institutional Investments Increase?

bitcoinIt has been discussed for some time how corporate companies that invest in , will display these assets on their balance sheets and their reporting requirements.

130,000 BTCMichael Saylor, MD, said that some of the reporting requirements for digital assets are bitcoin He stated that there was an obstacle in front of him making the investment.

According to a report in the Wall Street Journal today, the Financial Accounting Standards Board (FASB) said companies should use “fair value accounting methods” in accounting for assets such as Bitcoin and Ethereum.

Treating cryptocurrencies with fair value accounting allows companies to immediately report their losses and gains and treat them like traditional financial assets. Currently, digital assets are considered indefinite-lived intangible assets that require annual reporting.

Michael Saylor also shared his support for the new accounting system, saying it’s an important milestone in institutional investors’ adoption of Bitcoin.

It was stated in the news that the FASB will make a decision on this issue by the end of the year.

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