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> Bitcoin is accounted as an intangible under GAAP rules — and if the value of an intangible goes down, it can’t go back up again. Can someone explain this?
by coolspot 5y ago
> Bitcoin is accounted as an intangible under GAAP rules — and if the value of an intangible goes down, it can’t go back up again.
Can someone explain this?
- agency 5y agoFrom this article: https://news.bloombergtax.com/financial-accounting/sec-rejects-microstrategys-bitcoin-accounting-strategy https://news.bloombergtax.com/financial-accounting/sec-rejec... > U.S. generally accepted accounting principles, or GAAP, offer no rules for reporting the value of digital assets. Nonbinding guidance from the American Institute of CPAs says companies should classify the currency as an intangible asset, as outlined in ASC 350. This means businesses that don’t qualify as investment firms would record cryptocurrency at historical cost and then only adjust it if the value declines. Once their holdings get written down, or impaired, companies can’t revise the value back up if the price recovers.
- alisonkisk 5y ago