In a bid to develop transparent accounting rules for digital assets, the US Financial Accounting Standards Board (FASB) has announced what assets the industry body will include in the crypto rulemaking project, leaving NFTs and certain stablecoins outside the scope.
After years of being asked by businesses and investors to take a position on how to account for crypto holdings, the organization added crypto projects to its rulemaking priority agenda last May. And on Wednesday, the FASB announced what assets should be protected by the upcoming rules, The Wall Street Journal reported reported.
While leading cryptoassets such as bitcoin (BTC) and Ethereum (ETH) will be guaranteed by the project, accounting for NFTs and certain (unspecified) stablecoins likely to continue creating problems for companies that have invested in such assets. Until now, these investments have generally been considered based on intangible intangible assets, similar to website domains and trademarks, using non-binding guidelines published by International Association of Certified Professional Accountants (AICPA).
Under the plan, the FASB intends to complete preliminary discussions on crypto projects by the end of this year, when the industry council can vote on whether to issue a proposal, according to a spokesperson for the organization.
Susan Cosper, a board member at the FASB, defended the decision to remove NFTs from the project, saying it could slow things down. According to him, “it’s not widespread or material at this time” and “it’s definitely something we can focus on later if necessary.”
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