#btc #etc #wsm Happycoin.club - The US Financial Accounting Standards Board has announced new rules requiring companies to measure Bitcoin and cryptocurrencies at fair value. The rules are due to take effect on December 15, 2024, although companies have the option to adopt them earlier.
These guidelines require businesses to report the value of Bitcoin and cryptocurrencies at market prices at the end of each reporting period. The new initiative aims to improve the transparency and accuracy of financial reporting, given the volatile nature of digital assets such as Bitcoin.
Unlike previous methods, which treated Bitcoin as an intangible asset, the new approach uses fair value accounting. The innovation will allow companies to periodically record unrealized gains and losses, offering a benefit on their balance sheets if the asset's price rises, without having to sell. The change could encourage more companies to hold bitcoin for the long term and report appreciation without selling. Grayscale Investments LLC CFO Edward McGee called the new initiative a “holiday gift of common sense accounting.”
