**FASB Updates GAAP Accounting for Crypto Assets** The Financial Accounting Standards Board (FASB) has released Accounting Standards Update (ASU) 2023-08, which updates GAAP accounting for intangible assets, goodwill, and other crypto assets. **Key Changes:** * **Crypto Assets:** Crypto assets, such as Bitcoin and Ethereum, are now classified as intangible assets. * **Amortization:** Intangible assets with definite useful lives will be amortized over their useful lives. Crypto assets with indefinite useful lives will not be amortized. * **Impairment:** Crypto assets will be tested for impairment on an annual basis. * **Disclosures:** Companies must disclose information about their crypto asset holdings, including the fair value, amortization expense, and impairment losses. **Implications for Businesses:** Businesses that hold crypto assets will need to adjust their accounting practices to comply with the new guidance. This may involve: * Identifying crypto assets as intangible assets. * Determining the useful lives of crypto assets. * Monitoring crypto asset values for potential impairment. * Providing appropriate disclosures in financial statements. The new guidance aims to improve the transparency and comparability of financial reporting for companies that hold crypto assets. It also addresses the unique accounting challenges posed by these emerging assets.
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