The Financial Accounting Standards Board (FASB) has announced a list of crypto assets, which it will consider in its now highly anticipated forthcoming accounting rule regarding companies and their digital assets.
On August 31, the U.S accounting board announced the list of crypto assets that it will consider in its long-awaited accounting rule. FASB will require companies to account for and disclose their holdings of digital assets.
FASB On NFTs
Unfortunately, FASB will exclude non-fungible tokens (NFTs) and certain stablecoins from its cryptocurrency review. Although it did not name specific crypto assets that it will omit in the new rule, FASB hinted that it would only allow intangible crypto assets.
The U.S accounting board maintained that it would only consider digital assets that don’t carry contractual rights to cash flows or ownership of goods and services. Moreover, it will cover those that are fungible.
In that case, the new policy automatically excludes NFTs since they are naturally non-fungible and may carry ownership rights. The new accounting policy will exclude certain stablecoins since some are tangible assets.
In a recent short interview, Susan Cosper, an active board member of FASB, told the Wall Street Journal that not many companies have already invested in non-fungibles, insisting that NFTs are not “pervasive or material at this juncture.” However, Cosper said they might consider NFTs later if they find them worth it.
FASB On Other Digital Assets
FASB did not discuss the reporting standards for companies holding digital assets like Bitcoin (BTC). Under the current regulatory framework, companies must record unrealized losses if the value of their digital holdings falls, even if the company did not sell its assets.
Nonetheless, the FASB will not require companies to report unrealized gains. These rules will apply to companies holding other assets. In the meantime, the crypto industry hopes the FASB will review these recommendations to address this disparity.
Elsewhere, digital asset Tamadoge continues breaking its potential trading limits despite the recent general crypto market downtrend. Tamadoge has already raised a whopping $9.8 million from its token presale.
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