The Financial Accounting Standards Board, an outfit known as FASB that helps create rules for corporate bookkeeping, published a bulletin on Wednesday about implementing a long-awaited rule change that will benefit firms that hold Bitcoin and other cryptocurrencies.
Under the current accounting regime, firms such as Tesla and Block that hold Bitcoin must report a loss in earnings reports if the digital asset drops in value during a given time. At the same time, they can’t record a profit if the price goes up. In practice, this means that a company that bought Bitcoin at $25,000 and saw it dip to $20,000 must maintain the lower value on its balance sheet—even if the price soars to $40,000 right after.
