Every nation has a standard body that sets the direction for how the accounting of taxes are done. Here the assets and the account systems are changed on the regular basis. Crypto is out there since last few years and it has affected accounting standards around the world too.
In case of USA, they have FASB also known as the Financial Accounting Standards Board (FASB). This body makes sure to set the reporting standard and also add new accounting rules for the crypto and the digital assets. This would set the tone for the new changes for the accounting as the govt does the regulation.
In this particular context they are adding the new reporting standards for the crypto assets. Like any other govt funded body that changes the rules as the new rules and policies are issued. And for this they even had the discussion to comment invitation arranged.
Let's talk about new fair value reporting changes of the FASB.
Intangibles Goodwill and Other Crypto Assets
There is this new document that you'd find on the FASB website here. Document is formed for the accounting and the disclosure of the crypto assets. So here the rules and the regulations offered by the govt are taken into the consideration and based on that they have designed this document. They have given guidelines for the fair value reporting of assets.
And this means there is also the variety of the points taken into consideration based on the exchanges and the crypto companies feedback on how the reporting should be and how it can be more transparent for both consumers and the investors and other entities involved in declaring the crypto assets. You'd find that this new standard covers variety of those inputs too.
Crypto Financial Disclosure and Simplification
So what is the goal of the FASB? The goal is basically to make it easir for the accounting softwares, accountants and the people who want to report their financial asset to manage the asset easier and handle the financial portfolio lot easier. And for this purpose they are making things more simplified and easier as well.
Now that they have added the provision for the crypto assets, this means there is going to be a strong move that is about to happen towards the transparent filing of the taxation from those entities who happen to hold the crypto. And those who want to stay compliant would find the new FASB's standards of accounting fair.
Companies that Support Fair Value Reporting for Crypto Holdings
Once such type of the reporting standards are out in the world then there are some critics and also there are some of the people who are always going to be opposing the new changes. However this time variety of the companies that are coming in support of these new accounting standards. So that is a good sign between the companies, consumers and the people along with govt who sets policies.
Microstrategy and the Taxbit have praised the FASB for the new fair value reporting for the crypto assets. This goes to show that the new changes for the accounting are fairly recieved and there would be decent amount of the reporting done using the crypto companies and the consumers. Hopefully that would improve the public view towards the crypto taxation and transparent reporting.
Financial Accounting Standards Board of America has done a good job trying to put a new set of the repoting standards for crypto assets. If this type of progress is made around the world then crypto adoption and blockchain integration would be more transparent and easier for the consumers.