Accounting Rules Make the Outcome of Tesla’s Bitcoin Sale Unclear

  • 📰 CoinDesk
  • ⏱ Reading Time:
  • 34 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 63%

Coin Coin Headlines News

Coin Coin Latest News,Coin Coin Headlines

We should start treating bitcoin like the mark-to-market asset it is in order to avoid confusion, gckaloudis writes in this week’s Crypto Long & Short newsletter.

. That means the companies that hold bitcoin on their balance sheets need to mark down its balance sheet value if bitcoin’s price decreases. This is sensible and gives an accurate representation of the financial reality that the asset it holds is now worth less.

, in contrast, allow companies to adjust the value of an asset to reflect its value as determined by current market conditions. If bitcoin were allowed to be treated as a mark-to-market asset, companies could do this. And second, it would give a more accurate representation of companies’ financial positions. Public companies in the U.S. are already onerously tasked with providing quarterly financial reports to shareholders. If these companies hold bitcoin that is impaired one quarter and not allowed to be marked up the next, that will give an inaccurate representation of the company’s financial position without additional information from the company.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

gckaloudis Don't even know how much usdt it will cost in a week

gckaloudis JUST IN: Google co-founder Sergey Brin has filed for divorce after learning that his wife cheated on him with Elon Musk.

gckaloudis Btc is a property . Therefore you can’t apply mark to market accounting .

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 291. in COİN

Coin Coin Latest News, Coin Coin Headlines