FASB Issues Accounting Standards Update for Crypto Assets!

The Financial Accounting Standards Board (FASB) has released an Accounting Standards Update (ASU) to enhance the accounting and disclosure of certain cryptocurrencies. The new standard aims to provide investors with more relevant information about an entity’s financial position and reduce the costs and complexities associated with current accounting practices. The amendments require entities to measure crypto assets at fair value each reporting period, with changes recognized in net income. Significant holdings, contractual sale restrictions, and changes during the reporting period must also be disclosed. The ASU applies to all assets that meet specific criteria, including being created or residing on a distributed ledger based on blockchain or similar technology, being fungible, and not created or issued by the reporting entity or its related parties.