Ethereum

JUST

Radar

David

Bitcoin

<div class="cryptonews">
 <p class="is-style-lead">The Financial Accounting Standards Board has released its first <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> <a rel="noopener noreferrer nofollow" title="accounting" href="https://thebittimes.com/tag/accounting.html">accounting</a> <a rel="noopener noreferrer nofollow" title="rules" href="https://thebittimes.com/tag/rules.html">rules</a>, revolutionizing how companies <a rel="noopener noreferrer nofollow" title="report" href="https://thebittimes.com/tag/report.html">report</a> <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency holdings.</p>
 <p>Under these new guidelines, businesses holding Bitcoin (BTC) or Ethereum (ETH) 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 volatile nature 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: #Bitcoin to be recorded at fair value under new FASB rules issued today – Bloomberg <br><br>This is HUGE! pic.twitter.com/47gUogsDul</p>— Radar (@RadarHits) December 13, 2023
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 <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 Grayscale Investments, 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 cryptocurrencies 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>Michael Saylor, a prominent advocate for Bitcoin and founder of MicroStrategy, expressed his enthusiasm over the FASB’s decision on Twitter. He highlighted the decision as a pivotal upgrade in <a rel="noopener noreferrer nofollow" title="accounting" href="https://thebittimes.com/tag/accounting.html">accounting</a> standards.</p>
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    <p lang="en" dir="ltr">FASB has officially adopted Fair Value Accounting for #Bitcoin for fiscal years beginning after Dec 15, 2024. This upgrade to accounting standards will facilitate the adoption of $BTC as a treasury reserve asset by corporations worldwide. https://t.co/4GOuji6cr0</p>— Michael Saylor️ (@saylor) December 13, 2023
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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 #Bitcoin on their balance sheet. 2024 will be a landmark year for $BTC. https://t.co/gV0KRISt8B</p>— David Marcus (@davidmarcus) December 13, 2023
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  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> MicroStrategy endorses ‘fair value model’ proposal for reporting crypto holdings
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/fasb-introduces-crypto-accounting-rules-for-fair-value-reporting-tbt73599.html">https://thebittimes.com/fasb-introduces-crypto-accounting-rules-for-fair-value-reporting-tbt73599.html</a></p>

FASB introduces crypto accounting rules for fair value reporting

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