The United States Financial Accounting Standards Board (FASB)’s decision to allow companies to use “fair value” to account for their crypto holdings could be seen as another step toward the wider institutional adoption of cryptocurrency.
During a meeting on Oct. 12, the FASB board made the decision to require entities to measure crypto assets at “fair value.”
The board’s decision is “tentative” at this stage, and could be changed at future board meetings when they continue to weigh their options.
The decision, if approved, will allow companies to update their balance sheets regularly with the fair value of crypto assets rather than referring to digital assets such as Bitcoin (
) as “intangible assets,” where companies were required to measure assets at their lowest price during a reporting period.
The previous treatment of digital assets resulted in large impairment losses on balance sheets even if their positions were currently in the green, with firms being unable to regularly...
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