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<p class="is-style-lead">The Financial Accounting Standards Board has released its first crypto accounting rules, revolutionizing how companies report cryptocurrency holdings.</p> 
<p>Under these <a href="https://www.fasb.org/page/getarticle?uid=fasb_Media_Advisory_12-13-23" target="_blank" rel="noopener">new guidelines</a>, businesses holding Bitcoin (<a href="https://crypto.news/price/bitcoin/" data-type="link" data-id="https://crypto.news/price/bitcoin/">BTC</a>) or Ethereum (<a href="https://crypto.news/price/ethereum/" data-type="link" data-id="https://crypto.news/price/ethereum/">ETH</a>) must now value these assets at their current market price, a method known as fair value measurement.</p> 
<p>Previously, companies could only report the depreciated value of their crypto assets, often leading to diminished earnings reports due to the <a href="https://crypto.news/analysts-pick-5-altcoins-to-consider-as-solana-avalanche-post-losses/" data-type="link" data-id="https://crypto.news/analysts-pick-5-altcoins-to-consider-as-solana-avalanche-post-losses/">volatile nature</a> of cryptocurrencies. This one-sided approach has been a point of contention for businesses heavily invested in digital currencies.</p> 
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   <p lang="en" dir="ltr">JUST IN: 🇺🇸 <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#Bitcoin</a> to be recorded at fair value under new FASB rules issued today – Bloomberg <br><br>💥This is HUGE! <a href="https://t.co/47gUogsDul" target="_blank">pic.twitter.com/47gUogsDul</a></p>— Radar🚨 (@RadarHits) <a href="https://twitter.com/RadarHits/status/1734982221277094108?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">December 13, 2023</a>
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<p> You might also like: <a href="https://crypto.news/nasdaq-repurposes-crypto-tech-for-wider-financial-service-uses/"> Nasdaq repurposes crypto tech for wider financial service uses </a> </p> 
<p>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 highs and lows of their crypto holdings in their net income.</p> 
<p>The rules are set to take effect for fiscal years beginning after Dec. 15, 2024, although early adoption is permitted for both public and private companies. Edward McGee, CFO of <a href="https://crypto.news/grayscale-investments-ceo-hints-at-optimistic-scenario-for-spot-bitcoin-etf/" data-type="link" data-id="https://crypto.news/grayscale-investments-ceo-hints-at-optimistic-scenario-for-spot-bitcoin-etf/">Grayscale Investments</a>, lauded the update as a holiday gift of common sense accounting.</p> 
<p>Before the Financial Accounting Standards Board (FASB) decision, non-investment companies followed a practice guide by the American Institute of Certified Public Accountants, treating <a href="https://crypto.news/market-cap/" data-type="link" data-id="https://crypto.news/market-cap/">cryptocurrencies</a> as intangible assets. This meant companies could only report gains upon selling the assets, and they had to write down any decreases in value permanently.</p> 
<h2 class="wp-block-heading" id="michael-saylor-and-david-marcus-address-decision">Michael Saylor and David Marcus address decision</h2> 
<p><a href="https://crypto.news/tag/michael-saylor/" data-type="link" data-id="https://crypto.news/tag/michael-saylor/">Michael Saylor</a>, a prominent advocate for Bitcoin and founder of <a href="https://crypto.news/tag/microstrategy/" data-type="link" data-id="https://crypto.news/tag/microstrategy/">MicroStrategy</a>, expressed his enthusiasm over the FASB’s decision on Twitter. He highlighted the decision as a pivotal upgrade in accounting standards.</p> 
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   <p lang="en" dir="ltr">FASB has officially adopted Fair Value Accounting for <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#Bitcoin</a> for fiscal years beginning after Dec 15, 2024. This upgrade to accounting standards will facilitate the adoption of <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">$BTC</a> as a treasury reserve asset by corporations worldwide. <a href="https://t.co/4GOuji6cr0" target="_blank">https://t.co/4GOuji6cr0</a></p>— Michael Saylor⚡️ (@saylor) <a href="https://twitter.com/saylor/status/1734962747740152007?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">December 13, 2023</a>
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<p>Echoing Saylor’s sentiments, former PayPal President David Marcus stressed the importance of this change. In a quoted retweet of Saylor’s post, Marcus echoed Saylor’s sentiment.</p> 
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   <p lang="en" dir="ltr">You may think this is a small accounting change that doesn’t mean much. It’s actually a big deal. This removes a large obstacle standing in the way of corporations holding <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#Bitcoin</a> on their balance sheet. 2024 will be a landmark year for <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">$BTC</a>. <a href="https://t.co/gV0KRISt8B" target="_blank">https://t.co/gV0KRISt8B</a></p>— David Marcus (@davidmarcus) <a href="https://twitter.com/davidmarcus/status/1734974716505649531?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">December 13, 2023</a>
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<p> Read more: <a href="https://crypto.news/microstrategy-endorses-fair-value-model-proposal-for-reporting-crypto-holdings/"> MicroStrategy endorses ‘fair value model’ proposal for reporting crypto holdings </a> </p>

FASB introduces crypto accounting rules for fair value reporting

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