FASB: Will allow companies to report crypto holdings at fair market value

Author: Jesse Hamilton, CoinDesk; Compiler: Songxue, Jinse Finance

According to the Financial Accounting Standards Board (FASB), the first U.S. accounting rule specifically for cryptocurrencies will be introduced, companies must use the fair value method, requiring certain digital assets to be measured according to the price at which they trade in the market. **

At Wednesday's meeting, the board evaluated comments on the change and allowed staff to draft a final version of the new accounting standard that will be effective for fiscal years beginning after December 15, 2024. The final version is expected to pass a written vote before the end of the year.

The FASB, a nongovernmental standards-setting committee overseen by the U.S. Securities and Exchange Commission (SEC), proposed the rule in March. The proposed changes depart from the common practice of labeling these assets as unrealized losses - something the industry sees as a barrier to wider adoption of cryptocurrencies. Specifically, incorporating cryptocurrencies into accounting rules means companies will include profits and losses as part of their quarterly earnings reports. **

"I think the vast majority of investors who allocate capital based on the use of financial statements say it will provide them with better information to make decisions, so I Fully support this approach.”

The committee encourages companies to seek early adoption of the new standard.

Michael Saylor, founder and former CEO of MicroStrategy (MSTR), said on Twitter that this development “removes a major barrier to enterprise adoption of BTC as a treasury asset.” **