The Financial Accounting Standards Board (FASB) has voted unanimously to review the accounting rules for digital assets traded in the United States. This could have important implications for organizations looking for a governance approach to management. cryptocurrencies better on their balance sheet
Michael Saylor, CEO of Microstrategy claimThe result of the vote was 7-0, although the committee has not posted an official result yet. But the FASB websiteshowThere was a discussion on digital asset accounting on May 11 and the discussion was live-streamed but archived images of the meeting have not yet been uploaded.
Saylor has congratulated the Bitcoin community for such results, with him and many Bitcoiners expecting this to lead to a more welcoming accounting framework for institutional Bitcoin investments.
“It’s amazing,” said Dan Held, director of advertising at Kraken. “This will be one step closer to making it easier for organizations to own Bitcoin on balance sheets and accounts in a proper manner.”
Currently, companies are required to report their Bitcoin holdings at the lowest price during the specified reporting period. In other words, if Bitcoin fluctuates between $40,000 and $30,000 within a few months, The business must also report holdings of $30,000, even if the price approaches $40,000 at the end of the term.
This could negatively affect the earnings report of any company that holds Bitcoin on its balance sheet, as was the case with MicroStrategy. which reports Bitcoin value at the end of 2020 at $1.1 billion. Despite reaching $2 billion by December 31st
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