The Crypto Roundup: 14 December 2023 | CryptoCompare.com

The U.S.-based Financial Accounting Standards Board (FASB) recently announced a significant update to accounting standards, allowing companies like MicroStrategy (MSTR) to reflect the real-time value of their crypto holdings, a method known as "fair value" accounting.

This update marks a departure from the old rule that forced companies to record a loss if their crypto's market value dropped below its purchase price, even if they hadn't sold it.

Now, companies must provide detailed reports showing the fair value, original cost, and types of crypto assets they own. This change aims to offer more transparent and relevant financial information to investors and other stakeholders.

The decision to revise the guidelines followed extensive input from stakeholders, including nearly 500 responses to FASB's 2021 Invitation to Comment, stressing the need for better accounting and disclosure practices for digital assets.

For the last few months, FASB has been revising the accounting standards for crypto assets, and it announced in September that it would implement new rules.

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• Source: https://www.cryptocompare.com/email-updates/daily/2023/dec/14/