No More Impairment Charges: FASB Weighs Crypto Accounting Standards

May 18, 2023

The Financial Accounting Standards Board (FASB) is gathering feedback on long-awaited proposed changes to how companies report crypto holdings. According to the FASB, the existing accounting treatment of crypto as indefinite-lived intangible assets fails to offer investors informative data for decision-making purposes. Some investors separately requested more detailed disclosures regarding the type of crypto assets held by entities and any changes in those holdings. The FASB is reportedly proposing two other major accounting rule changes beyond fair value measurement for crypto assets. Financial statement disclosures: Companies would be obligated to disclose significant holdings of crypto assets, their historical cost basis and fair value.

The source of this news is from TaxBit