The US Financial Accounting Standards Board (FASB) has announced which assets it will include in its crypto rules creation project to develop transparent accounting rules for digital assets, excluding NFTs and certain stablecoins.
After years of asking businesses and investors how to keep their crypto assets accountable, the organization added this crypto project to its agenda in May last year, when it prioritized rulemaking. And the Wall Street Journal reported on Wednesday that the FASB announced which assets future rules will cover.
While leading crypto-assets such as Bitcoin and Ethereum are included in the project, the issue of accounting standards for NFTs and certain (undisclosed) stablecoins will likely continue to pose a challenge for companies investing in such assets. Until now, such investments have been accounted for predominantly on indefinitely-lived intangible assets, such as website domains and trademarks, under non-binding guidelines issued by the International Association of Certified Professional Accountants (AICPA).
Under this plan, the FASB plans to complete initial discussions on the crypto project by the end of the year, when the industry board can vote on whether to publish a proposal, according to the agency’s spokesperson.
Susan Cosper, a board member at FASB, defended the decision to remove NFTs from the project, explaining that they could slow down the project. Cosper said NFTs are not common or tangible at this point and they can focus on those later.
Source: Adobe/Philip Steury
