New Crypto Accounting Standards Go Into Effect Today: Will They Boost Bitcoin’s Corporate Adoption?
The Financial Accounting Standards Board’s new accounting rules for cryptocurrencies will go into effect on Monday, making it easier for businesses to account for the value of their holdings on their balance sheets and encouraging adoption.
What happened: The Accounting Standards Update, announced in December of last year in response to widespread stakeholder feedback, will allow firms to report cryptocurrencies at fair value, or simply their current value, recognizing them under the company’s net income.
Previously, cryptocurrencies were treated as indefinite-lived intangible assets, meaning that companies had to account for impairment charges.
Companies were required to write down the value of their holdings if the value fell below the original buying price, while the opposite was not true in …
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