Accounting Board Rules Will Make Crypto Reporting Simpler for Firms

A U.S. accounting authority has said firms wanting to use cryptocurrencies should employ fair-value accounting when keeping stock of assets on their books.

From now on, companies are required to use fair-value accounting when taking stock of the crypto assets in their books, according to the U.S. Financial Accounting Standards Board (FASB).

Firms holding digital assets, and their bookkeepers, had long hoped the FASB would adopt the fair-value accounting standard for cryptocurrencies.

Fair-value accounting allows immediate recognition of gains or losses

Prior to this decision, businesses lacked a specific way to disclose their crypto assets. Consequently, many classified them as indefinite-lived intangible assets.

However, this required these firms to annually report on the assets if its value dropp