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loksfoxBronze | QC: CC 18•

Is it restricted only to bitcoin or crypto in general?

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futurenotionOPSilver | QC: CC 26 | r/CMS 30•

From the article, "In a long-anticipated move, Bloomberg Tax reported that the Financial Accounting Standards Board (FASB) is set to introduce new fair value accounting rules for Bitcoin and other cryptocurrencies."

So, it's for crypto in general. BTC is just making the headlines.

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loksfoxBronze | QC: CC 18•

Ohhh, thanks, so that's for all crypto, good stuff

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stuloch Invisibility is relative. •

The biggest challenge that I can see is to get a benchmark fair value to apply. Have a look at the different values provided by CoinGecko v Coinmarketcap at any point in time. Companies can just pick and chose the valuation that they like and feel that they can defend if neccesary.

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Socialinfluencing•

Crypto tax write offs, financial institutions kicking their lips like the wolf in little red riding hood.

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Antana18•

The question remains if this will be cash tax deductible.

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PayDreTin•

This is massive!

To explain: under existing guidance, publicly traded and private companies record crypto assets held on the balance sheet as indefinite lived intangibles which means they can only record decreases in value as a direct hit to the income statement with no gains if price rises.

Example - buy ₿itcoin for $30,000 and it decreases to $20,000. Record an impairment charge of $10,000 for the decrease (even though there was no sale). However, if ₿Itcoin increases to $40,000, the company cannot record a gain. It can really only hurt the company that holds its.

Under the newly approved fair value accounting, the company does not record the impairment losses and records both unrealized losses and gains while holding.

Huge step for large publicly traded company adoption.

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