FASB is moving to fair value reporting for Bitcoin holdingsPrevious practice required companies to keep impairment losses from crypto, caused when an asset suddenly loses value, on their balance sheets even after the digital asset regained its value.The new accounting method will increase volatility in the earnings of companies with large crypto holdings but allow them to record financial recoveries from increasing crypto prices.
Besides crypto-native companies like Coinbase, the rule change will affect investment companies and companies like MicroStrategy and Tesla that hold large amounts of crypto. MicroStrategy chairman Michael Saylor wrote on X: "Fair value accounting is coming to #Bitcoin. This upgrade to FASB accounting rules eliminates a major impediment to corporate adoption of $BTC as a treasury asset."
To accommodate the changes, crypto will become a line item under “intangible assets” in financial accounts.
Belgique Dernières Nouvelles, Belgique Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
La source: TheBlock__ - 🏆 464. / 53 Lire la suite »