FASB Implements Fair Value Accounting Rules for Bitcoin

According to PANews, the Financial Accounting Standards Board (FASB) has officially implemented fair value accounting rules for Bitcoin, effective today. Previously, companies could only assess Bitcoin's value based on its purchase price, without considering any appreciation. This development is expected to significantly impact how businesses manage Bitcoin as a reserve asset. Michael Saylor, the founder of MicroStrategy, highlighted last week that the FASB's adoption of these rules marks a pivotal change. The new accounting standards will apply to fiscal years beginning after December 15, 2024. This advancement is anticipated to encourage more companies to adopt Bitcoin as a reserve asset, potentially increasing its integration into corporate financial strategies.