On Dec. 13, FASB published updates to Accounting Standards.
FASB issued media advisory on Accounting Standards 2023-08, update to improve the accounting for and disclosure to investors of certain cryptocurrency assets.
Entitled, No Intangibles - goodwill and other - crypto assets (subtopic 350-60).
Standard Amendments
Accounting amendments require the entity to measure certain crypto assets at fair value each reporting period with changes in fair value recognized in net income.
Improve information provided to investors about entity’s crypto asset holdings by requiring disclosure about significant holdings, contractual sale restrictions, changes.
Apply to assets that meet intangible asset definition, do not provide the asset holder with enforceable rights to or claims on underlying goods, services, or other assets.
Also, assets that are created or reside on a distributed ledger based on blockchain, secured through cryptography, fungible, not created or issued by the reporting entity.
Effectiveness
Amendments are effective for all entities for fiscal years beginning after Dec. 15, 2024.
