The Changing Accounting Treatment for Bitcoin

The Financial Accounting Standards Board (FASB) is on the verge of issuing prescriptive guidance for the accounting treatment for digital assets, including bitcoin. Generally, bitcoin and other digital assets have historically been classified as an intangible asset that is recorded at cost and tested for impairment, but never revised upward. This change would be welcomed by the industry and may usher in more bitcoin ownership. The report details the current accounting regime for bitcoin and how that may change with fair value accounting.