MicroStrategy supports the cryptocurrency accounting rules proposed by FASB

ChainCatcher news, according to TheBlock, MicroStrategy supports a proposal by the Financial Accounting Standards Board (FASB) that would allow companies to use fair value accounting for cryptocurrencies held on their balance sheets.

Under the current accounting rules known as the "indefinite-lived intangible asset accounting model," companies must use the original purchase price and then record cumulative impairment expenses. This means that the value of the Bitcoin held by MicroStrategy on its balance sheet is only $2 billion, which is half of its fair market value.

The company stated, "According to the recommendations of the U.S. Financial Accounting Standards Board, reporting cryptocurrency holdings under a fair value model 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." (source link)