New FASB Rules Will Allow Crypto and Bitcoin To Be Measured At Fair Value


Although the new regulations are scheduled to take effect in December 2024, businesses will have the opportunity to implement them sooner.

The Financial Accounting Standards Board (FASB) published new guidelines today that mandate businesses record cryptocurrency, such as Bitcoin, at fair value. Although the regulations are scheduled to take effect on December 15, 2024, businesses will have the opportunity to implement them earlier.

Stay in the know on crypto by frequently visiting Crypto News Today

Businesses will have to record the worth of cryptocurrencies based on market values at the conclusion of each reporting period under the new regulations, which are the first of their type in the US. With an eye toward enhancing accuracy and transparency in financial reporting, this step recognizes the unstable character of digital assets such as Bitcoin.

CryptoCaster Quick Check:

Before, corporations had to record an impairment charge on their books even if they didn’t sell Bitcoin because it was treated as an intangible asset under the previous accounting system. However, unless they sold, they would not be able to profit from their books if the price increased. Thanks to fair value accounting, businesses can now report unrealized gains and losses on a quarterly basis, allowing them to record an actual benefit on their books in the event that an asset’s price increases—all without having to sell the asset to do so. Because businesses can record the appreciation without having to sell anything, they may be more inclined to add bitcoin to their balance sheet and become long-term holders as a result.

“This Christmas gift of commonsense accounting is just fantastic,” according to Edward McGee, CFO of Grayscale Investments LLC.

Now that enterprises holding Bitcoin have access to more rapid and accurate information about their financial health, investors and regulators will benefit from it. It is anticipated that this improved openness would boost confidence in the sector, which has historically been beset by worries about a lack of monitoring and regulation.

Fair value accounting for cryptocurrency is not without its difficulties, though. Because Bitcoin and other digital assets are volatile, businesses must invest in reliable methodologies and processes for valuation in order to guarantee financial reporting accuracy. Additionally, because determining these assets’ fair market value can be a challenging undertaking, auditors will need to have competence in this area.

Notwithstanding these difficulties, the industry has advanced significantly with the adoption of fair value accounting standards for Bitcoin and other cryptocurrencies.CRYPTOCASTER® - DECENTRALIZED FREEDOM!

We hope you appreciated this article. Before you move on, I was hoping you would consider taking the step of supporting CryptoCaster’s journalism. 

From  Elon Musk, Larry Fink(BlackRock) to Jamie Dimon(JP Morgan Chase) a number of billionaire owners have a powerful hold on so much of the hidden agendas’ which eludes the public concerning the paradigm shift juxtaposed by cryptocurrency and web3 emerging technologies. CryptoCaster is different. We have no billionaire owner or shareholders to consider. Our journalistic efforts are produced to serve the public interest in crypto development and institutional disruptions – not profit motives.

And we avoid the trap that befalls much U.S. and global media – the tendency, born of a desire to please all sides, to engage in false equivalence in the name of neutrality and retail consumer protection. While fairness and transparency dictates everything we do, we know there is a right and a wrong position in the fight against fiat global banking interest and monetary reconstruction precipitated by the emerging crypto ecology.

When we report on issues like the FTX, Binance and Ripple crisis, we’re not afraid to name who or what is uncovered. And as a crypto sentinel, we’re able to provide a fresh, outsider perspective on the global monetary disruption – one so often missing from the insular American and European media bubble. 

Around the world, readers can access the CryptoCaster’s paywall-free journalism because of our unique reader-supported model. That’s because of people like you. Our readers keep us independent, beholden to no outside influence and accessible to everyone – whether they can afford to pay for news and information, or not.

We thankyou for the on-going support our readers have bestowed monetarily. If you have not considered supporting CryptoCaster, if you can, please consider supporting us just once from $1 or more of Bitcoin (satoshi) or Eth, and better yet, support us every month with a little more. Scroll further down this page to obtain CryptoCaster’s wallet addresses.

Thank you.

Kristin Steinbeck
Editor, CryptoCaster

Please Read Essential Disclaimer Information Here.
© 2022-2023 Crypto Caster provides information. does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.

Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
MATIC – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt


You may also like