TechFlow news: The Financial Accounting Standards Board (FASB) has released its first set of accounting rules for cryptocurrency, requiring companies holding Bitcoin or Ethereum to record the value of their holdings at fair value, with changes reflected in net income.
Companies such as MicroStrategy, Tesla, and Block will record gains and losses on their cryptocurrency holdings according to the new accounting rules released on Wednesday.
The new rules will take effect after December 15, 2024, and apply to both public and private companies for the 2025 fiscal year. Companies may choose to adopt the standards before the effective date.
Previously, the U.S. had not established clear accounting guidelines for digital assets held by companies.
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