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FASB's Fair Value Rule for Bitcoin Takes Effect December 15, 2024, Allowing S&P 500 Firms to Report at Market Value

Dec 16, 2024, 12:00 AM

The U.S. Financial Accounting Standards Board (FASB) has implemented new fair value accounting standards for Bitcoin, effective December 15, 2024. This change allows companies, including those in the S&P 500, to report Bitcoin on their balance sheets at fair market value rather than at the purchase price. The new accounting treatment is expected to enhance the adoption of Bitcoin as a corporate treasury asset, eliminating the previous requirement for permanent markdowns. Firms are anticipated to revalue their Bitcoin holdings, which could lead to increased market activity and a potential surge in Bitcoin's value. This marks a significant shift in how corporations can treat Bitcoin, aligning its valuation with current market conditions and paving the way for broader acceptance in corporate finance.