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Is this the same magic that means microsystems has to take a MtM writedown every time its bitcoin tanks, but cannot do so when it goes up? xD I am generally pr
by Ntrails 4y ago
Is this the same magic that means microsystems has to take a MtM writedown every time its bitcoin tanks, but cannot do so when it goes up? xD
I am generally pretty pro expecting the MtMing of liquid assets, but very sympathetic to areas where hard to price illiquids are unpleasant
- formerkrogemp 4y agoThe accounting of "cryptocurrency" is still being developed, but, yes, Bitcoin holdings take an impairment when their value drops below a certain point. This doesn't typically affect cost basis. It may be deducted as losses on a tax return but that might impact cost basis. I've heard from other accountants (a year or so ago, so take this with a lump of salt) that some companies are trying to account for cryptocurrency as inventory, as a "hot asset," as cash equivalents, or as intangibles.