September 11 2023

Financial Accounting Standards Board Votes to Implement New Crypto Accounting Standards

Source: IBFD Tax Research Platform news

The Financial Accounting Standards Board (FASB) unanimously voted (7-0) to implement new accounting rules requiring companies that hold or invest in cryptocurrency to use fair-value accounting standards (FASB Topic 820) for measuring assets and liabilities at their current market value.

Additionally, under the new rules, companies holding or investing in cryptocurrency will need to:

  • present the aggregate amount of crypto assets separately from other intangible assets that are measured using other measurement bases;
  • present gains and losses on crypto assets in net income and present those gains and losses separately from the income statement effects of other intangible assets, such as amortization or impairments; and
  • classify crypto assets received as non-cash consideration during the ordinary course of business that are converted nearly immediately into cash as operating flows.

The new rules are effective for fiscal years beginning after 15 December 2024. However, companies can begin implementing the rules before the effective date.