FASB Publishes its First Direct Accounting Standard for Reporting Crypto Assets

December 16, 2023

The FASB on December 13, 2023, issued its first direct accounting and disclosure standard on crypto assets to provide guidance that more accurately reflects the economics of Bitcoin and similar tokens in financial reports. The rules require crypto assets that meet six characteristics to be measured at fair value each reporting period with changes in fair value recognized in net income—enabling upswings of tokens to be captured. Further, businesses need to provide substantial disclosures so that investors can understand their crypto asset holdings, significant holdings, contractual sale restrictions, and changes during the reporting period, according to the rules’ text. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets, and take effect for fiscal periods beginning after December 15, 2024, including interim periods within those years. For crypto assets that are subject to contractual sale restrictions, the business must disclose the fair value of those crypto assets, the nature and remaining duration of the restriction, and the circumstances that could cause the restriction to lapse.

The source of this news is from TaxBit