The votes are in. During its recent meeting, the Financial Accounting Standard Board (FASB) says it plans to issue an exposure draft of a new accounting standard for cryptocurrency assets.
The new standard would require companies to measure assets such as Bitcoin and Ethereum using fair value accounting with gains and losses recorded in current period comprehensive income.
The proposed Accounting Standards Update, which will have a 75-day comment period, is expected to be issued before the end of March. According to KPMG, FASB reached the following decisions about the measurement of in-scope crypto assets:
- They would be measured at fair value, with fair value changes recorded in current period earnings
- Not to require or permit an alternative measurement, (e.g., historical cost less impairment, for crypto assets not traded in an active market)
- Commissions, transaction fees, and other charges incurred to acquire crypto assets would be expensed as incurred—unless other, industry-specific US GAAP (such as ASC 946, financial services—investment companies or ASC 940, financial services—brokers and dealers) applies, in which case the entity would continue to follow that guidance
- That the above measurement decisions would not differ between public and private entities.