The US Financial Accounting Standards Board (FASB) has published new rules that will ease cryptocurrency companies.
FASB shared with the public the rules on how companies holding cryptocurrencies on their balance sheet will report these assets.
According to the old rules, if the value of the cryptocurrency they hold is below the price at which they purchased it, companies can They had to report it as if they had suffered a loss..
But the new rules require that the fair value of the assets they hold, cost basis and types So companies want They will not be required to report damage they did not cause. In this way, companies will be given the opportunity to use fair value accounting.
Organisation September At a meeting held in 2018, the assets of companies holding cryptocurrencies reporting at fair market value He had paved the way.
The new rules in question MicroStrategy (MSTR) It will benefit companies such as those that have cryptocurrencies on their balance sheets. He couldn’t hide his excitement about the development and immediately in the statement MicroStrategy CEO Michael Saylor drew attention with the following statements:
The FASB has formally adopted Fair Value Accounting for Bitcoin for fiscal years beginning after December 15, 2024. This upgrade to accounting standards will facilitate the adoption of Bitcoin as a treasury reserve asset by companies around the world.
Rules unanimously accepted by the board After December 15, 2024 It will be valid for the fiscal years that begin. But companies will be allowed to apply these rules earlier for financial statements that have not yet been published.
FASB Chairman Richard R. Jones In his statement on the subject, he said that the new rules will affect companies and investors. To better reflect your financial situation regarding cryptocurrencies He emphasized that it would allow:
The new standard responds to feedback from all stakeholders stating that accounting and disclosure of crypto assets should be a top priority for the board. It will provide investors and other capital allocators with more relevant information that better reflects the underlying economics of specific crypto assets and the financial health of an organization, while also reducing the cost and complexity associated with applying current accounting.