FASB Issues New Crypto Accounting Standards for Corporate Balance Sheets
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FASB published new standards allowing companies to recognize "fair value" changes in crypto holdings on balance sheets. This will benefit companies like MicroStrategy.
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Under existing rules, companies had to report losses if crypto was worth less than purchase price, even if not sold.
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New rules require reporting of fair value, cost basis, and types of crypto assets held. Stakeholders said existing guidance didn't provide useful investor information.
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New guidance adopted unanimously by FASB board. Will take effect after Dec. 15, 2024.
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FASB received vast feedback supporting new approach to digital assets. Nearly 500 respondents to 2021 invitation to comment requested crypto accounting project.