An Accounting Standards Update (ASU) is slated to be published by the Financial Accounting Standards Board (FASB) on December 13, 2023.
In response to feedback from stakeholders of all backgrounds, said FASB Chair Richard R. Jones, “the new standard will enhance accounting and disclosure for crypto assets.” “It will provide investors and other capital allocators with more relevant information that better reflects the underlying economics of certain crypto assets and an entity’s financial position while reducing cost and complexity associated with applying current accounting.”
In the ASU, certain crypto assets are now accounted for by measuring their fair value each reporting period and recognizing changes in fair value in net income. Moreover, the amendments require disclosure of significant holdings, contractual sale restrictions, and changes during the reporting period in order to improve information provided to investors about an entity’s crypto asset holdings.
All assets meeting all of these criteria are affected by the ASU:
- Conform to FASB Accounting Standards Codification ® definition of intangible asset
- Assume that the asset holder does not have enforceable rights or claims to the underlying assets, goods, or services
- Using blockchain technology or another distributed ledger
- Cryptography ensures security
- Fungibility
- Reporting entities or their related parties do not issue or create these documents.
ASU amendments are effective for all entities beginning their fiscal years after December 15, 2024. We allow early adoption of interim financial statements as well as annual financial statements that have yet to be issued (or made available for issuance). It must be adopted as of the beginning of the fiscal year that includes an interim period if amendments are adopted in an interim period.
WHERE TO CONTACT US:
Website : WWW.CRYPTOTRADE1.COM
Twitter : https://twitter.com/cctrade11
Telegram : https://t.me/cctrade1
Facebook : www.facebook.com/cryptotrade1
Instagram : www.instagram.com/cryptotrade1/
YouTube : www.youtube.com/cryptotrade1
Email : info.cryptotrade1@gmail.com