FASB introduces crypto accounting rules for fair value reporting

The Financial Accounting Standards Board has published its first crypto accounting standards, revolutionizing the way companies report their cryptocurrency holdings.

Under these new guidelines, companies that hold Bitcoin (BTC) or Ethereum (ETH) must now value these assets at their current market price, a method known as fair value measurement.

Previously, companies could only report the depreciated value of their crypto assets, which often led to decreased earnings reports due to the volatile nature of cryptocurrencies. This one-sided approach has been a point of contention for companies that have invested heavily in digital currencies.

The new rules aim to provide a more balanced and accurate reflection of a company’s financial health by allowing them to record both the ups and downs of their cryptocurrency holdings in their net income.

The rules will take effect for fiscal years beginning after December 15, 2024, although early adoption is allowed for both public and private companies. Edward McGee, chief financial officer of Grayscale Investments, praised the update as a common-sense accounting Christmas gift.

Prior to the Financial Accounting Standards Board (FASB) decision, non-investment firms followed a practice guideline from the American Institute of Certified Public Accountants, treating cryptocurrencies as intangible assets. This meant that companies could only declare profits when selling assets and had to write off any decrease in value permanently.

Michael Saylor and David Marcus address the decision

Michael Saylor, a prominent Bitcoin advocate and founder of MicroStrategy, expressed his excitement over the FASB’s decision on Twitter. He highlighted the decision as a fundamental improvement in accounting standards.

Echoing Saylor’s sentiments, former PayPal president David Marcus highlighted the importance of this change. In a retweet quoted from Saylor’s post, Marcus echoed Saylor’s sentiment.

Follow us on Google News

Leave a Reply

Your email address will not be published. Required fields are marked *

Best Exchanges
Buy, trade, and hold 600+ cryptocurrencies on Binance
Buy, trade, and hold 450+ cryptocurrencies on ByBit
Buy, trade, and hold 150+ cryptocurrencies on Kucoin
Buy, trade, and hold 100+ cryptocurrencies on BitFinex 
Buy, trade, and hold 150+ cryptocurrencies on CoinBase

Guru Investing is an independent source of information about investing , not controlled by any broker. All our reviews and guides are created honestly, according to the best knowledge and judgement of the members of our independent expert team; however, they are intended for informative purposes only and should not be construed as, nor relied upon as, legal advice. You should always make sure that you meet all regulatory requirements before making any financial operations . Copyright ©2024 Email for contact [email protected]
pornhd.com hindisexyporn.com kashmiri girls sex jayasex indaporn.info desi bhabi xxx xlnindia sexo-vids.com 1st time sex video たかはししょうこ動画 javfuck.mobi 真正中出し3本番 彩乃なな sex film sexy film xxxhindividoes.com xnxx indian teens
ano nga ba ang pangarap iwantmoreteleserye.com hello heart episode 3 reshma hot saree images nuporn.mobi xvidies com bihar chudai tubezaur.mobi heroine photo hot dasixx hardcoreporntrends.com ileana d'cruz hot photoshoot www.xxxsexvideo.com xbeegtube.mobi hindi movi
www sxe vidoes erohardcore.info boops sucking dehati fuck kitporn.info chuk chuk rail fuckcomix.com mojoporntube.net gujaratisexvidio probinsyano october 18 2021 full episode freeteleseryetv.net ang probinsyano july 14 2022 قصص سكس كرتون cmsextra.net سكس بنات تخينة