Companies rejoice, new Bitcoin accounting rules encourage adoption

The Financial Accounting Standards Board (FASB) comes with good news for the crypto sector. It has published new accounting standards that companies looking to invest in cryptocurrencies such as Bitcoin (BTC) can follow. The news could have a significant impact on adoption of the asset class.

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Crypto like Bitcoin in accounting

Companies that want to incorporate cryptocurrencies into their finances often still face obstacles. Because Bitcoin and altcoins are still so new, there are hardly any clear laws and regulations. The same applies to accounting standards.

This means that the handling of crypto in accounting is not clear, resulting in investing in crypto becoming a complicated task. This will change in the USA with the new standards from the FASB.

Under the new standards, which come into effect on December 15, 2024, companies will be allowed to record the value of their cryptocurrencies in their accounts at the current value. This is a big step forward compared to current standards. Companies must now maintain the original purchase price and take complicated measures to accurately reflect the current value.

FASB Chairman Richard R. Jones wrote in the statement:

“It will provide investors with more relevant information that better reflects the underlying economics of specific crypto assets and a company’s financial position, while reducing the costs and complexity associated with applying current accounting.”

New standards are good for Bitcoin adoption

Of course, the news sounds good to Michael Saylor, CEO of MicroStrategy. This company has 174,530 Bitcoins worth $7.3 billion. The cost of these Bitcoins is much lower, namely 5.3 billion.

In a tweet, the Bitcoin billionaire writes:

“This accounting standards update will facilitate the adoption of BTC as a treasury reserve by companies around the world.”

The American company last bought Bitcoin a few weeks ago. This happens regularly as part of their treasury policy. MicroStrategy also said at the time that it had much bigger plans for what would emerge from these documents.

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