FASB To Develop Cryptocurrency Accounting Rules

May 16, 2022, 2:56 PM

(from Bloomberg Law) Companies will get long-awaited rules for accounting for the stashes of Bitcoin and other digital assets they hold on their balance sheets, U.S. accounting rule-makers said last week. The Financial Accounting Standards Board unanimously agreed to kick off discussions on how to recognize and measure digital assets, as well as how to present them on company financial statements. The board rejected an idea to also consider whether commodities should be treated similarly to digital assets. No part of the rulebook for U.S. accounting currently spells out how to account for digital assets. Companies follow nonbinding guidance from the American Institute of CPAs that calls for businesses that don’t qualify as investment companies to account for crypto as intangible assets, as prescribed under ASC 350. SB will have to perform research, debate plans in public, draw up a proposal, and release it for public input before finalizing any plans.

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