The U.S. Financial Accounting Standards Board (FASB) will not require financial reporting for stablecoins and NFTs because they are held by a small number of companies.
The FASB has excluded non-fungible tokens (NFTs) and certain stablecoins from its crypto-related supervisory activities. The agency also introduced the criteria by which companies must report and disclose their sources of capital for the acquisition of digital assets.
The statement says that the digital assets covered by the rule will include intangible assets that have no contractual rights to cash flows or ownership of goods and services, and fungible assets. NFTs are non-fungible tokens, but some stablecoins are tangible assets.
FASB board member Susan Cosper said there aren’t many companies holding NFTs yet, so “it’s not all-encompassing or significant at this stage.” According to her, the department can focus on this later, if necessary.
The FASB has not provided reporting rules for companies holding cryptocurrencies such as Bitcoin (BTC). Currently, companies must record unrealized losses when the value of their assets falls, even if they do not sell assets. However, companies are not required to report unrealized profits.
There are no similar rules for companies that own other assets. The crypto community hopes that the FASB will update the guidelines to address this discrepancy.
Recall that at the beginning of this year, MicroStrategy, at the request of the Securities and Exchange Commission (SEC), was forced to remove data on investments in cryptocurrencies from its financial statements.
Source: Bits
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