In a bid to develop transparent accounting rules for digital assets, the US Financial Accounting Standards Board (FASB) has revealed what assets the industry body will include in its crypto rule-making project, leaving NFTs and certain stablecoins outside its scope.
After years of being asked by businesses and investors to take a position on how to account for crypto holdings, the organization added the crypto project to its rule-making priority agenda last May. And on Wednesday, the FASB disclosed what assets are to be covered by a forthcoming rule, The Wall Street Journal reported.
While the leading cryptoassets such as bitcoin (BTC) and Ethereum (ETH) will be covered by the project, accounting for NFTs and certain (unspecified) stablecoins is likely to continue creating problems for companies who have invested in such assets. Until now, such investments have predominantly been accounted for based as indefinite-lived intangible assets, similar to website domains and trademarks, with the use of the non-binding guidelines issued by the Association of International Certified Professional Accountants (AICPA).
Under the plan, the FASB intends to finalize its initial discussions on the crypto project by the end of this year, when the industry body’s board could vote on whether to issue a proposal, according to a spokeswoman for the organization.
Susan Cosper, a board member at the FASB, defended the decision to exclude NFTs from the project, declaring they could slow it down. According to her, “it’s not pervasive or material at this juncture” and “it’s certainly something that we can focus on later if need be.”
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