Rule

Bitcoin

Change

Gains

<h2 id="span-span-data-font-font-size-style-font-size-19px-rule-change-boosts-confidence-for-crypto-holding-firms-to-report-gains-span-span-br">Rule Change Boosts Confidence for Crypto-Holding Firms to Report Gains </h2>
Bitcoin and other cryptocurrencies might become more popular with U.S. companies soon. There's a new rule that lets these companies show the real value of their crypto holdings better.
The CEO of Swan Bitcoin, Cory Klippsten, explained that companies like MicroStrategy and Tesla had to show less value for their Bitcoin before. But now they can show the real worth of their Bitcoin investments.
<h3 id="span-span-data-font-font-size-style-font-size-16px-new-accounting-rules-allow-companies-to-show-crypto-gains-span-span">New Accounting Rules Allow Companies to Show Crypto Gains</h3>
A recent update in accounting rules by the Financial Accounting Standards Board (FASB) changes how companies can track the value of their cryptocurrency holdings. Previously, if the value of crypto dropped, companies could adjust its worth on their books.
But if its value rose while they held it, they couldn't reflect that increase until they sold it. Now, with the new rules starting in December 2024, companies can record gains in the estimated market value of crypto they own.
Before this update, if a company held onto crypto and its value increased, that rise couldn't be noted in their financial reports until they sold it. However, the new rules allow companies to record gains in the value of their crypto holdings directly on their books. This means that if the value of their&nbsp;<a href="https://www.coingabbar.com/en/crypto-currency-news/bitcoin-adapts-daily-transactions-and-change-financial-system" class="f-link">Bitcoin</a> or other cryptocurrencies goes up while they're holding them, they can show that increase in their financial reports.
With this change, companies might view Bitcoin and other cryptos differently. They can now treat them as strategic financial assets. Being able to report gains and losses on their value could make crypto more attractive for businesses.
This could lead to increased adoption of&nbsp;<a href="https://www.coingabbar.com/en/crypto-currency-news/connection-between-dark-web-transactions-and-crypto" class="f-link">cryptocurrencies</a> as companies recognize the potential benefits of holding and reporting on these assets.
<h4>The Importance of Digital Assets in Financial Reporting</h4>
"Thielen emphasized the growing significance of digital assets in financial statements, enabling confident valuation of crypto holdings.
David Marcus, co-creator of Facebook's Diem project, hailed the new rules on Twitter, citing their substantial impact on facilitating corporate Bitcoin holdings.
Mark Palmer from Berenberg Capital noted the rules' approval as a boon for crypto-holding companies, enhancing their financial outlook."
Also Read:&nbsp;<a href="https://www.coingabbar.com/en/crypto-currency-news/microsofts-focusing-on-advancing-phi-2-capabilities" class="f-link">Microsoft Research Launched Phi-2, A Small Language Model</a>

Bitcoin Adoption Surges as Major Rule Change Encourages More Firms

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