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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.

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

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

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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.

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

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

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

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Do you think microsoft will get in on it now?

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

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

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

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