FASB says fair-value accounting best captures the economics of crypto assets
Oct 18, 2022
On October 10-11, 2022, the Financial Accounting Standards Board (FASB) and the Accounting Standards Board of Japan (ASBJ) held a joint meeting in Norwalk. The meeting was the 31st in a series of biannual meetings between the two standard setters.
The two boards informed each other about their respective activities and exchanged views on technical topics in which they both have an interest, including accounting for goodwill, accounting for crypto-assets, and the boundary of financial reporting.
At this meeting, Chair Richard R. Jones noted that, as having identified by their respective stakeholders, "crypto assets and financial instruments," were of top priority.
On the heels of this meeting, the FASB announced on Wednesday, that companies should use fair-value accounting for measuring bitcoin and other crypto assets. In the absence of specific accounting or disclosure rules for cryptocurrency assets, this method will allow companies to recognize losses and gains immediately. Inching one step closer towards clearing up uncertainty over reporting how much such holdings are worth.
The next meeting between the FASB and ASBJ is expected to be held in the first half of 2023.
Review the press release on the FASB's website.
