Blog

In what may very well be a big growth amid a widespread crash within the cryptocurrency market, the Financial Accounting Standards Board (FASB) on Wednesday took a choice for addressing the popularity and measurement of digital property, in a unanimous vote.

In this regard, deliberations could be held to overview accounting for exchange-traded digital property and commodities.

FASB Vote Goes All In

According to MicroStrategy’s Michael Saylor, the FASB agreed so as to add the venture by a unanimous vote of 7-0 earlier within the day.

Congratulations to the Bitcoin neighborhood. This morning, by unanimous vote of 7-0, the Financial Accounting Standards Board (FASB) agreed so as to add a venture to overview Accounting for Exchange-Traded Digital Assets and Commodities.

Dan Held, director of progress advertising at cryptocurrency trade Kraken, stated,

This is wonderful. One step nearer to creating it simpler for corporates to personal Bitcoin on their steadiness sheet and account for it in a cogent method.

Breakthrough In The Long Term

The FASB’s board assembly handout acknowledged that the aim of the decision-making assembly was to ask the board whether or not so as to add a venture to its technical agenda to deal with accounting for sure digital assets and commodities. Although the event doesn’t assure any attainable consequence in a time-bound method, it might properly show to be an enormous breakthrough in the long run.

It could also be famous that in November 2018, the International Accounting Standards Board (IASB) determined in opposition to including a venture on the holdings of cryptocurrencies or preliminary coin choices. Later, in June 2019, the International Financial Reporting Standards (IFRS) interpretations committee mentioned how IFRS requirements apply to holdings of cryptocurrencies.

The committee noticed {that a} holding of cryptocurrency meets the definition of intangible asset in IAS 38, Intangible Assets, as a result of it’s able to being separated from the holder and bought or transferred individually, and it doesn’t give the holder a proper to obtain a hard and fast or determinable variety of items of forex.

Anvesh is eager on writing about main bulletins round crypto adoption by establishments and in style personalities. Having been related to the cryptocurrency trade since 2016, his curiosity on this house helped pivot his journalism profession to the blockchain ecosystem. Follow him on Twitter at @AnveshReddyEth and attain out to him at anvesh (at) coingape.com

The offered content material could embody the non-public opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability on your private monetary loss.