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FASB Adopts Cryptocurrency Accounting and Disclosure Rule for Companies
The Financial Accounting Standards Board has voted to establish a new rule on accounting and disclosure of cryptocurrencies, changes that companies holding the assets say more accurately reflect their financial situation.
In the United States, there are no specific accounting or disclosure rules for crypto assets. Companies now classify crypto assets as indefinite-lived intangible assets, similar to intellectual property like copyrights. Companies must reassess the value of these assets at least once a year and write it down if it falls below the purchase price. If the value were to increase, companies would only be able to record a gain when they sell the asset, not if they continue to hold it.
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