Fair Value Accounting For Bitcoin Starts Today \ stacker news ~bitcoin

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Fair Value Accounting For Bitcoin Starts Today www.ccn.com/news/crypto/bitcoin-financial-legitimacy-fasb-fair-value-accounting/

814 sats \ 15 comments \ @siggy47 16 Dec bitcoin

Effective for fiscal years beginning after Dec. 15, 2024, the new accounting rule will allow companies to more accurately reflect Bitcoin’s current market value in their financial statements.

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53 sats \ 0 replies \ @grayruby 16 Dec

True fair value accounting would be a balance sheet denominated in sats.

43 sats \ 0 replies \ @denlillaapan 16 Dec

cool! let's see how many companies pick it up

43 sats \ 8 replies \ @Satosora 16 Dec

Wait, so how did mstr report it initially? Interesting, but they must have been doing this method, but crunching numbers every time? He is a big supporter of it, now bitcoin is on its way to 1million a coin.

30 sats \ 7 replies \ @siggy47 OP 16 Dec

The old rule:

Companies record the value of bitcoin at the time of purchase in their accounts. If the price rises, they cannot log those gains until they sell. Yet if the value of bitcoin drops, the company must write down the value of their holdings as an impairment charge.

43 sats \ 6 replies \ @Satosora 16 Dec

Interesting how they could only log losses instead of gains. I kind of see why he couldnt conbince other companies to buy bitcoin.

30 sats \ 5 replies \ @siggy47 OP 16 Dec

Yes. This really is a big deal in the corporate world. It used to be treated under the "intangible asset" rule.

43 sats \ 4 replies \ @Satosora 16 Dec

Yes, no wonder only firm believers like Saylor put it on their companies books. I can see more companies adopting bitcoin now.

30 sats \ 3 replies \ @siggy47 OP 16 Dec

Yep

43 sats \ 2 replies \ @Satosora 16 Dec

Do you think microsoft will get in on it now?

30 sats \ 1 reply \ @siggy47 OP 16 Dec

I don't know

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43 sats \ 2 replies \ @0xbitcoiner 16 Dec

I don't understand much about this, does it have to do with declarations of unrealized profits or is it something else?

75 sats \ 1 reply \ @siggy47 OP 16 Dec

Now bitcoin price appreciation can be counted on a company's balance sheet. That was not the case in the past.

Here's the old rule:

Companies record the value of bitcoin at the time of purchase in their accounts. If the price rises, they cannot log those gains until they sell. Yet if the value of bitcoin drops, the company must write down the value of their holdings as an impairment charge.

43 sats \ 0 replies \ @0xbitcoiner 16 Dec

That's right, it's about unrealized profits.

0 sats \ 0 replies \ @OgFOMK 16 Dec

The link on the CCN page to Fasb is broken. Doing a search at the fasb website does not show this.