FASB Drafts Crypto Accounting Regulation

US-based Financial Accounting Standards Board, cryptocurrencies took action to regulate what place it would occupy in company accounting.

FASBstated in its draft document released Wednesday on how companies should reflect their crypto assets on the balance sheet.

The government-independent accounting standards body has endorsed the adoption of a fair value approach when reporting companies’ digital assets. The officials who prepared the draft shared the feedback they received in the past months with the public:

“We have received feedback that the classification of crypto assets as intangibles with an indefinite life does not provide investors with useful decision-making information. Such a classification does not accurately reflect the underlying economy of digital assets.”

With the new accounting standard envisaged by the FASB, the job of investors becomes much easier. According to the draft, companies will be required to provide detailed explanations about crypto assets in their balance sheet reports.

“We Pay Attention to Returns”

Speaking after the draft was revealed, FASB President Richard Jones emphasized that they exchanged ideas while making the standardization:

“Investors should have access to clear and transparent information about the fair value of crypto assets held by companies. We value every opinion on crypto accounting regulation.”

The FASB will wait until June for stakeholders to review the draft and voice their opinions.