FASB will issue a proposal on the accounting for cryptocurrencies in the first half of next year to solicit feedback, FASB Chair Richard Jones recently announced during an industry conference.
About two months ago, the FASB board decided to limit the guidance to fungible tokens, deemed to be intangible assets, secured through cryptography on a blockchain or distributed ledger, and do not provide the asset holder with enforceable rights to or claims on underlying goods, services or other assets.
Further, FASB would measure the tokens at fair market value as reflected by the underlying economics of those transactions.
Next, FASB will decide on three more areas to complete the proposal: presentation, disclosure and transition. Learn more.