65438+On Wednesday, February 2023, financial accounting standards board (FASB) issued the first cryptocurrency accounting rule. The company will need to calculate the value of cryptocurrency held at fair value and record it in the published quarterly and annual financial reports.
This new rule allows companies holding cryptocurrencies to record the highs and lows of cryptocurrencies, which may encourage more companies to choose cryptocurrencies in their investment decisions.
Before the promulgation of this cryptocurrency accounting rule, enterprises that do not meet the qualification of investment companies (such as Tesla, whose main business is not asset management) have adopted the practice guide of the American Institute of Certified Public Accountants by default, and regarded cryptocurrency as intangible assets, including trademarks, copyrights, brands and other assets. Significantly different from cryptocurrencies, these assets are rarely traded.
Scope and time of application:
FASB intends to narrow the scope of the new accounting standards. NFT is excluded, and stable coins and tokens created by issuers (such as FTT issued by FTX itself) are not applicable to these new rules, so they cannot be recorded in financial reports.
Packaged tokens that appear through bridging, such as WBTC, are also not covered by the new rules. FASB members said that if these problems become common in practice, they hope to deal with more cryptocurrency problems in the future.
The new regulations will take effect for listed companies and private companies in the fiscal year starting after 12 and 15 in 2024, which means that 2025 is a company that ends in a calendar year. Companies can choose to start following these rules before the deadline. In the rising cycle, we can see that cryptocurrencies are recorded at market value as soon as possible in this year's financial report.