The FASB, which sets accounting standards for U.S. public and private companies and nonprofits, on Wednesday voted unanimously to adopt a new standard that would require businesses to use fair-value accounting for bitcoin and certain other crypto assets. Companies and accountants have repeatedly rallied for this change, as it would allow them to recognize losses and gains immediately, and treat digital assets as they would some financial assets instead of as indefinite-lived intangible assets.
Public companies’ financial statements will have to disclose their crypto assets, separating them from intangible assets like patents and trademarks, on a quarterly and annual basis. Private companies must do the same in whichever financial reports they compile. Businesses will have to include gains and losses on their crypto assets in their net income.
The rule is set to go into effect for 2025 annual reports for calendar-year public and private companies, which can adopt the changes early. The FASB expects to formally issue the standard by year-end, a spokeswoman said.
Source: FASB Adopts Crypto Accounting and Disclosure Rule for Companies – WSJ
