05/10/2023

FASB Issues Proposal on Crypto Assets

If finalized, the proposal would introduce the first explicit crypto accounting standard

The Financial Accounting Standards Board (FASB) issued a proposal in March 2023 to provide accounting and disclosure rules for certain types of cryptocurrency assets. The proposal would help companies more accurately reflect the economics of such assets. If finalized, the proposal would introduce the first explicit accounting standard on crypto assets into U.S. Generally Accepted Accounting Principles (GAAP).

Scope of changes

For example, the proposed disclosures for Ethereum would include:

• The number of tokens held
• Their fair value, and 
• Their cost basis

The company would also disclose information about restrictions in crypto holdings, what it would take to lift any restrictions, and any changes in those holdings.

Please select this link to read the complete article from OSAE Mission Partner Clark Schaefer Hackett (CSH).