Michael Silor, CEO of Bitcoin (BTC) and CEO of Micro Strategy, welcomed the US Financial Assessment Board (FASB) ‘s review of digital assets and commodity accounting rules.
Under current FASB guidelines – authorized source of generally accepted principles of accounting (GAAP) – companies must report digital assets such as BTC as “invisible assets” in accounting records.
This is due to the fact that the agency does not meet the agreed definition of “cash and cash equivalents, financial instruments, financial assets and inventory”.
Because cryptocurrency is considered an intangible asset, companies are forced to measure their assets at a lower price point over a period of time, which often results in “damage” to their accounts, even if the company does not close.
The FASB held a meeting earlier on Thursday to vote on a crypto-currency review. Although the results have not yet been announced on the website, Sailor appears to have been watching the live broadcast, saying the vote was 7-0 and “Congratulations to the Bitcoin community.”
Congratulations #Bitcoin Community. This morning, in a 7-0 vote, the Financial Accounting Standards Board (FASB) agreed to add a project to evaluate the conversion of digital assets and commodities for exchange.
– Michael Sailor⚡️ (@saylor) May 11, 2022
“It’s amazing,” said Dan Held, director of Kraken Development Marketing.
While it is not clear when the review will take place or what the outcome will be, it will be much easier for companies to report their assets accurately than to report “traditional financial assets” to anything that looks like a ball park. Low cost on intangible assets.
For example, both Tesla and MicroStrategy have reported losses in their BTC stocks over the past 12 months. This is despite not realizing the loss on the sales side, and the BTC price indicates that their positions are often in the green.
Cointelegraph also reported on Wednesday that New York-based digital marketing and radio station Townsquare Media posted a $ 400,000 loss on BTC holdings. This is despite the fact that on March 31, the last day of Q1, the stock could sell for $ 1.2 million.
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If the microstatege reports on Thursday, the damage will be correct. Microstratege Averages 129,218 BTC holdings worth $ 30,700 in last week’s Q1 report.
According to Forbes, the net worth of silicon – mainly BTC and Micro Strategy Stocks – fell from $ 1.6 billion to $ 1 billion in March this week.
According to CoinGecko, BTC is up 27.9% from March 1 to $ 29,741 at the time of writing.
No matter what the price, Saylor, the company will continue to buy and sell.