More firms set to add Bitcoin to balance sheets after major rule change

The new Financial Accounting Standards Board (FASB) rules released on Dec. 13 that come into effect on December 2024 see the estimated market value of crypto held by companies represented accurately on companies’ accounting books by allowing them to record when they’re holding assets at a gain.

Previously, crypto held by companies was subject to impairment only with the value of crypto decreased on the books which could not be increased until sold, even if its value increased while being held.

Klippsten added that companies could now use Bitcoin as a “strategic financial asset” as they would be able to report on their value gains and losses, a feature that could help drive adoption.

Matrixport research head and Crypto Titans author Markus Thielen told Cointelegraph that the rule change “underscores the palpable corporate demand” for incorporating crypto into a firm’s accounting.

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Dec-14-2023 08:10:47 AM