The FASB has voted to finalize guidance that will require certain crypto assets to be measured at fair value.
In under a minute
- On Sept. 6, 2023, the Financial Accounting Standards Board (FASB) voted to finalize its proposal on accounting for holdings of certain crypto assets – such as bitcoin and ether – at fair value.
- Consistent with the original proposal, the forthcoming standard will require holdings of in-scope crypto assets to be measured at fair value at each reporting date with changes in fair value recorded through earnings.
- The final standard also will require entities to provide detailed disclosure about crypto assets measured at fair value, including an annual rollforward of an entity’s crypto asset holdings.
- The final standard takes effect for all entities in reporting periods beginning after Dec. 15, 2024, including interim periods; early adoption is permitted. Entities must adopt the guidance using a modified retrospective approach, recording a cumulative effect adjustment to equity (or net assets) as of the beginning of the year of adoption.