Detailed explanation of the new changes in US cryptocurrency accounting rules: Wrapped tokens are excluded from the final rules
Author: TaxDAO
We believe that the new crypto asset accounting rules will have the following impacts:
Accounting,Requirecryptocurrency采用公允价值计量，意味着会计处理上更加统一和透明。尽管新准则会给大量投资加密货币的公司的收益带来较大波动，但对于大部分为了获得资产升值而持有加密资产的公司，通过公允价值准则的信息披露以及要求财报附注里对企业持有的加密资产披露详细的信息，可以更适当反映这些资产对持有人财务状况的影响，反映数字资产的经济实质，为企业管理者和投资人做出更好的决策。
Taxation, considering that capital gains tax is only levied on realized capital gains, what affects realized capital gains is the way of determining the cost of assets when disposing of assets (transfer or sale), such as the first-in-first-out method or the moving weighted average method. Therefore, the subsequent measurement of the cryptocurrency held during the holding period using the historical cost method or fair value in accounting does not affect the realized capital gains and the capital gains tax to be paid. However, when using fair value measurement, accounting needs to be able to accurately distinguish between realized and unrealized capital gains during the accounting period so that accurate tax declarations can be made.
Accounting softwareCompared with traditional financial products such as bonds and stocks, cryptocurrencies are of various types, have large and frequent price fluctuations, and are rich in business scenarios. Therefore, whether the cost method or fair value measurement is used in accounting, it is a big challenge for accounting software. Compared with the cost method, fair value measurement requires regular determination of whether the value of the crypto assets held has changed, and the corresponding fair value change gains and losses are accrued. This requires accounting software to track and measure the value changes of crypto assets by different categories throughout the accounting period, so as to accurately account for changes in value and the realization of capital gains.
TaxDAO We are currently developing a financial and tax software Intax that can well meet the above accounting and tax declaration requirements and has more functions. This will make it easier for companies that hold or invest in cryptocurrencies to calculate the financial accounting of cryptocurrencies, make the accounting data more timely and accurate, and make tax declarations more convenient. This will help large companies that may be afraid of holding cryptocurrencies on their balance sheets due to the complexity of accounting technology to enter the cryptocurrency market.
Of course, the new regulations do not include all crypto assets, such as digital collectibles (NFTs) and packaging.TokenAs committee member Susan Cosper said, the narrower the scope of the new rules, the easier it would be to implement quickly.
The United States's fiscal and tax policies on cryptocurrencies have always been a reference for other countries and regions in the world. The introduction of the new regulations may gradually eliminate the current situation where the cryptocurrency accounting rules among countries are unclear and inconsistent.
Here is Bloomberg's full report:
Long-awaited Bitcoin accounting rules to capture ups and downs (2)
By Nicola M. White
Originally published on: September 6, 2023
-
Fair value accounting rules to take effect from 2025
-
包装代币被排除在最终规则之外
Cryptocurrency companies and other businesses with large holdings of digital currencies will get long-awaited accounting rules to measure the value of their holdings of bitcoin, ethereum and other cryptocurrencies, U.S. accounting standard setters voted unanimously on Wednesday.
Under the new rules, expected to be released by the end of the year, companies that hold or invest in cryptocurrencies will be required to report their holdings at fair value, including rebounds after price declines, an accounting rule designed to capture the latest value of an asset. Companies and accountants have been telling the Financial Accounting Standards Board for months that while the new rules will introduce volatility to earnings for companies that invest heavily in cryptocurrencies, the ability to record recoveries will be an improvement over current practices.
“It’s not often that we can simultaneously reduce system costs and increase the decision usefulness of information, but this makes it very easy to do both,” said FASB member Christine Botosan.
FASB agreed that the rules would take effect as early as 2025, but companies can choose to apply them earlier.
Gaps in the rulebook
There is no section in the U.S. accounting rulebook that specifically addresses enterprise software maker MicroStrategy, automaker Tesla or cryptocurrencies.exchange How should companies like Coinbase identify and measure the digital currencies they own.
Currently, these businesses default to following the American Institute of Certified Public Accountants’ practice guidance, which treats most cryptocurrencies as intangible assets. This category includes items such as trademarks, copyrights and brands, all of which, unlike cryptocurrencies, are rarely traded. This means these businesses record their cryptocurrencies at the historical prices they paid and assess their holdings quarterly for impairment, or declines in value. If the price of Bitcoin drops briefly during this period, it is considered impaired. If the market recovers, these businesses cannot revise the value upward.
MicroStrategy is the listed company with the largest cryptocurrency holdings, and the above accounting method will usually affect its earnings.
MicroStrategy Chief Financial Officer Andrew Kang sent a letter to the FASB in May responding to the accounting board’s initial proposal, saying that reporting cryptocurrencies at fair value “will enable us to provide investors with a more relevant view of our financial condition and the economic value of our bitcoin holdings, which in turn will help investors make informed investment and capital allocation decisions.”
All companies, public and private, will have to comply with the accounting rules for fiscal years beginning after Dec. 15, 2024, including interim periods between those years. That means calendar-year-end companies will adopt the rules in 2025. Companies will be allowed to adopt the rules once FASB formally publishes them later this year.
Companies are already required to list intangible assets as a line item on their balance sheets. Under the new rules, companies must keep separate records for their crypto assets so that investors and other readers of financial statements have a clear understanding of how much a company has invested in cryptocurrencies.
In addition, companies will disclose significant holdings of cryptocurrencies and any restrictions on those holdings in a footnote during each reporting period. Each year, companies must reconcile or disclose changes in the beginning and ending balances of crypto assets by category. The FASB agreed on Wednesday that companies do not need to include in their reconciliation activities crypto assets received as payment and immediately converted to cash.
Additionally, the FASB agreed that because cryptocurrencies will be measured at fair value, companies will comply with the disclosures required by applicable accounting rule ASC 820 so that readers of financial statements understand how the company arrived at the measurement.
A long journey
Since 2017, FASB has rejected three separate requests to write rules for cryptocurrencies, arguing that too few companies use Bitcoin in a substantial way.BlockchainAfter the assets were traded, the committee changed its tune.
The Committee's focus is narrow, covering onlyBlockchainThe technology creates or resides on a distributed ledger and is secured by cryptography.SafetyCrypto assets currently must be classified as intangible assets as defined by U.S. accounting rules and are fungible, meaning they can be interchanged with like assets.
Non-fungible tokens (NFTs) — unique digital tokens that can be anything from a video clip to a digital sports trading card — will not be subject to the rules. Stablecoins and wrapped tokens (which allow aBlockchainCryptocurrency in anotherBlockchainNumbers used onXiaobai NavigationTokens) are also not included.
Several groups, including the Big Four accounting firms, have pressured the FASB to include wrapped tokens in the rules, saying they are held for similar purposes and trade at similar prices to the underlying crypto assets.
On Wednesday, a majority of committee members said they needed more information about the market before expanding the scope of the committee’s work and rejected calls to include wrapped tokens.
“The intentional narrowing of the rule does allow us to get this information into the hands of investors more quickly,” said FASB member Susan Cosper.
FASB said it will continue to monitor cryptocurrency markets and take additional actions if necessary.
The article comes from the Internet:Detailed explanation of the new changes in US cryptocurrency accounting rules: Wrapped tokens are excluded from the final rules
As the market conditions have improved, many protocols have begun to put token issuance on the agenda, and the largest Solana airdrop season in history may begin. Author: Miles Deutscher, Crypto KOL Compiler: Felix In the past month, the price of SOL has risen by 178%, making the Solana ecosystem the focus of market attention. For those who are ambushing airdrops…
相关文章
