Changing US accounting rules will be a boon for companies holding cryptocurrencies in 2025

The FASB has recommended that cryptocurrencies be recorded at fair market value on corporate balance sheets, eliminating potentially large writedowns but adding to volatility.

The Financial Accounting Standards Board (FASB) has unanimously approved rules for accounting for the fair value of corporate cryptocurrency holdings, according to media reports. The rules will come into force in 2025.

The FASB is the US organization that sets accounting and reporting standards for organizations that follow US generally accepted accounting principles (GAAP). In March, he issued a call for comments on proposed changes to the FASB accounting standards codification.

The proposal was discussed and voted on September 6.

Fair value is the estimated price of an asset that takes into account the current market value and other decisive elements. The FASB had made an “interim” decision on fair value accounting for crypto assets in October 2022.

Christmas has come early for @saylor $MSTR and other companies with Bitcoin on their balance sheets!

FASB moves to fair value reporting for Bit...