The FASB voted Wednesday, Dec. 14, to move ahead with its ongoing project poised to establish new accounting standards for cryptocurrency that will require both private and public companies to disclose a range of information about crypto holdings in their financial reports for the first time.
The aim is to give readers of financial statements maximum transparency into how the market value of cryptocurrencies affects businesses’ bottom lines.
The FASB board approved the requirement of companies to disclose crypto gains and losses within net income as well as “significant asset holdings” in future financial reports.
The votes put FASB on track to release a proposal for public comment by mid-2023. The proposal would apply to both public and private companies. Learn more.