New FASB Standards for Cryptocurrency

(from the Wall Street Journal) Last week, the Financial Accounting Standards Board (FASB) said companies should use fair-value accounting for measuring bitcoin and other crypto assets, moving a step closer to a standard that could clear up uncertainty over reporting how much such holdings are worth. Lacking accounting and disclosure rules for cryptocurrency assets, businesses have been classifying them as indefinite-lived intangible assets similar to intellectual property such as trademarks. Companies and accountants have been pushing for fair-value accounting, which would allow them to recognize losses and gains immediately, rather than waiting a year, and treat digital assets as financial assets. The FASB on Wednesday said fair-value accounting would be a requirement rather than an option for companies. This topic as well as criteria for crypto assets will be discussed by the end of the year, according to a FASB spokesperson.

More from the Wall Street Journal