Bitcoin’s price has collapsed to its lowest in 16 months today amidst the huge sell-off of the digital assets in the crypto market. Other major cryptocurrencies that saw a downfall alongside these risk assets are tech stocks.
At the moment the world’s largest cryptocurrency by market capitalization has dropped by 14% over the last 24hrs trading at $26,842.
FASB To Add A Project!
However, when considering any significant development in the midst of the crypto crash, the Financial Accounting Standard Board (FASB) has come up with a decision for addressing the recognition and measurement of digital assets, but in a unanimous vote.
In respect with this, a discussion will be held to review accounting for exchange-traded digital assets and commodities.
While talking about FASB, Michael Saylor, CEO of MicroStrategy congratulated the Bitcoin community and claimed that the FASB has now agreed to include the project by a unanimous vote of 7-0.
On the other hand, Kraken exchange director, Dan Held states that this is an amazing move, a step closer towards helping the corporates to own Bitcoin on their balance sheet and count for it.
FASB’s Decision To See A Breakthrough In Long-Term
After the FASB’s board meeting, the FASB stated that the main reason for this decision-making meeting was to discuss whether it’s necessary to include a project to its technical agenda in order to address certain digital assets and commodities. This decision will definitely impact as a breakthrough in the long run.
Back in November 2018, the International Accounting Standards Board (IASB) had made a decision to add a project on the holdings of cryptocurrencies or ICOs. Later in June 2019 there was a discussion held by the International Financial Reporting Standards (IFRS) on how the IFRS standards could be applied to the crypto holdings.
Later the outcome of the discussion was that the committee noticed that a cryptocurrency holding meet the definition of intangible assets in IAS 38, Intangible Assets as it can be successfully separated from the holder and the one who sells or transfers individually. This movie doesn’t give a right to a holder to receive a fixed number of units of currency.
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Source: https://coinpedia.org/news/decision-by-fasb-towards-crypto-will-be-a-breakthrough-in-the-future/