The price of Bitcoin crashed to a 16-month low today amid the massive sell-off of digital assets on the crypto market. The other top cryptocurrencies that have seen a drop alongside these risky assets are tech stocks.
Currently, the world’s largest cryptocurrency by market capitalization has fallen 14% in the past 24 hours, trading at $26,842.
The FASB will add a project!
However, considering any significant development amid the cryptocurrency crash, the Financial Accounting Standard Board (FASB) made a decision to address the recognition and valuation of digital assets, but in a unanimous vote.
In keeping with this decision, a discussion will take place to review the accounting for exchange-traded digital assets and commodities.
Speaking of the FASB, Michael Saylor, CEO of MicroStrategy, congratulated the Bitcoin community and said the FASB agreed to include the project by a unanimous 7-0 vote.
On the other hand, the director of the Kraken exchange, Dan Held, says that this is an incredible step, one more step to help companies own bitcoins on their balance sheet and account for them.
The FASB’s decision to see a breakthrough in the long term
After the FASB board meeting, the FASB said the main reason for this decision-making meeting was to discuss the need to include a project in its technical agenda to address certain digital assets and products. This decision will certainly have an impact as a long-term breakthrough.
In November 2018, the International Accounting Standards Board (IASB) had already taken the decision to add a project on the holding of crypto-currencies or ICOs. Later, in June 2019, a discussion was hosted by International Financial Reporting Standards (IFRS) on how IFRS could be applied to cryptocurrency holdings.
Later, the outcome of the discussion was that the committee noticed that a cryptocurrency holding meets the definition of an intangible asset in IAS 38, Intangible Assets, as it can be successfully separated from the holder and one who sells or transfers individually. This film does not entitle a holder to receive a fixed number of currency units.