FASB is seeking comments on a proposed Accounting Standards Update (ASU) intended to improve the accounting for and disclosure of certain crypto assets.
The FASB recently said it received feedback that the “accounting for crypto assets as indefinite-lived intangible assets, which is a cost-less-impairment model, does not provide investors with decision-useful information or reflect the underlying economics of those assets.”
The proposed ASU “would provide investors greater transparency into the fair value of crypto-assets held by entities, as well as additional disclosures about the types of crypto assets held and changes in those holdings,” FASB Chair Richard Jones said in a news release.
The proposal would require an entity to measure those crypto assets at fair value each reporting period with changes in fair value recognized in net income. The comment deadline on the proposed ASU is June 6. Read more.