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Translated by: MOS English Team – WenMeng

It is reported on May 15 that the U.S. Financial Accounting Standards Board (FASB), the body responsible for setting accounting and financial reporting standards for U.S. companies, has turned its attention to digital currencies.

Image Source: fincash

At a recent board meeting, the nonprofit discussed adding a project to review “the accounting of exchange-traded digital assets and commodities.” According to the Wall Street Journal (WSJ), the agenda was passed and the accounting standards body will now begin implementing the project.

According to the Wall Street Journal, the FASB has now made it a priority to develop rules for companies and nonprofits that hold digital currency to report the asset in their accounting. However, the FASB only focuses on common digital currencies including BTC and ETH, not NFTs.

The agency said it made the decision due to the growing need for clarity in the digital currency industry. It received a lot of feedback from industry players who pointed out that accounting and financial disclosure standards are urgently needed in the interest of the public, especially as the market capitalization of digital currencies grows rapidly.

Image Source: wef

The FASB has said that it will consider adopting fair value accounting for digital currencies. This would allow digital currencies to be considered financial assets in the company’s books.

The move would clearly fill a major void that many have pointed to hindering institutional adoption of digital currencies.

Reference:
https://gnewsapp.com/post/p2537812/

Edited by: MikeHua
Posted by: Peter Chen

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