The FASB has approved a new standard for measuring the changes in value of cryptocurrencies like Bitcoin.
The standard, which focuses on cryptocurrency assets, requires entities to measure these assets at fair value and recognize changes in net income each reporting period.
At present, most companies report cryptocurrency as an intangible asset that is impaired to the lowest observable value within a given reporting period.
For the time being, the new guidance excludes assets such as non-fungible tokens. The guidance will be effective for fiscal years beginning after Dec. 15, 2024. Read more.