FASB Weighing Digital Currency Rules

Chris Gaetano
Published Date:
Aug 2, 2017

The Financial Accounting Standards Board (FASB) is planning to consider rules for digital currencies like Bitcoin to address inconsistent accounting practices regarding their use, according to Reuters. The board's actions were prompted by a letter sent by an organization called the Chamber of Digital Commerce, which advocates for the increased use of blockchain technology in business. The group said there needs to be guidance on when and how to recognize and measure digital currency through U.S. Generally Accepted Accounting Principles (GAAP), as the lack of clear accounting rules has hamstrung development in this sector. For example, conflicting views of how to handle digital currencies can discourage investors and put roadblocks on the way to going public. Reuters said that the FASB will discuss whether to add a project to its agenda at a public meeting, though the timing of this meeting has not been set, though the board might incorporate digital currencies into its wider project on how to account for intangible assets. 

Click here to see more of the latest news from the NYSSCPA.