The Financial Accounting Standards Board has received hundreds of letters inspired by micro-strategies urging companies holding bitcoin to reconsider U.S. accounting standards. Bloomberg Report
MicroStrategy recently wrote to the Financial Accounting Standards Board (FASB), “This disconnect between the financial statements of an entity and the economic reality of its financial condition and the results of its operations and fails to provide information to investors, analysts and the general public. They need to make an informed assessment of the present and future possibilities of an entity.
Companies that are not currently investment companies report Bitcoin as an indomitable asset. This means that Bitcoin is recorded on the balance sheet at its historic historical cost and is damaged if the price falls. However, if the price of Bitcoin goes up, the value can never go up.
Significantly, the FASB does not change the rules based on the number of letters it receives, but points to a clear lack of sensitivity between traders holding bitcoin between the volume reserve and other interested parties: current rules They are related to bitcoin.
Those who have written to FASB urging them to take action include four large accounting firms, an American Institute of CPA panel, some investment groups and private businesses. These requests were made in response to calls for input into the FASB’s long-term program. Was due to comment on 22 September.
The Coalition of Concerned Investors wrote, “We recommend that FASB start a project to calculate digital assets immediately; they may lag far behind FASB until they are detailed in the financial report, they may never catch up.”
The FASB has rejected previous calls to amend the Accounting Standards for Bitcoin, claiming that most companies do not have significant holdings and that if they accept the currency as payment, they immediately convert it into cash, Bloomberg Reportedly, however, some large companies, including MicroStrategy and Square, have doubled their bitcoin investments and are not selling.
In early September, Michael Stiller, CEO of MicroStrategy, announced that the company had bought an additional 5,050 bitcoins for about 2 242.9 million during the third quarter.
Since August 2020, MicroStrategy has bought and held approximately 114,042 bitcoins, with a total purchase price of .. 3.116 billion and an average value of বি 227.71 per bitcoin, including fees and costs. The company owns more bitcoins than any other public company in the world.