{"id":79185,"date":"2023-05-23T15:15:35","date_gmt":"2023-05-23T12:15:35","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=79185"},"modified":"2025-09-11T09:35:17","modified_gmt":"2025-09-11T06:35:17","slug":"microstrategy-backs-proposal-to-account-for-bitcoin-at-fair-value-in-financial-reporting","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/microstrategy-backs-proposal-to-account-for-bitcoin-at-fair-value-in-financial-reporting\/","title":{"rendered":"MicroStrategy backs proposal to account for Bitcoin at fair value in financial reporting"},"content":{"rendered":"<p>MicroStrategy, the analytics software provider, backs<a href=\"https:\/\/www.fasb.org\/Page\/PageContent?PageId=\/projects\/exposure-documents.html\">the proposal <span data-descr=\"Financial Accounting Standards Board - Board for Financial Accounting Standards\" class=\"old_tooltip\">FASB<\/span><\/a> which envisions fair-value accounting for cryptocurrencies on the balance sheet.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Today <a href=\"https:\/\/twitter.com\/MicroStrategy?ref_src=twsrc%5Etfw\">@MicroStrategy<\/a> submitted a letter responding to and supporting FASB\u2019s proposed accounting standards update to allow fair value accounting for corporate <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> holdings. If you agree, you can voice support via the FASB survey by 6\/6\/23. <a href=\"https:\/\/t.co\/ubJzzoOYat\">https:\/\/t.co\/ubJzzoOYat<\/a><\/p>\n<p>\u2014 Michael Saylor\u26a1\ufe0f (@saylor) <a href=\"https:\/\/twitter.com\/saylor\/status\/1660630865100021761?ref_src=twsrc%5Etfw\">May 22, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;We value the initiative of the organisation,&#8221;<\/em> the statement said.<\/p>\n<\/blockquote>\n<p>The proposal is out for public comment through June 6.<\/p>\n<p>The company has submitted responses to eighteen questions from FASB.<\/p>\n<p>Under the current standard \u201cthe indefinite-life intangible asset impairment model,\u201d MicroStrategy would have to use the original purchase price and then adjust it for accumulated impairment losses.<\/p>\n<p>As of Q1 2023, the company reported the cost of acquiring its first cryptocurrency<a href=\"https:\/\/u1f987.com\/en\/news\/microstrategy-posts-461-2-million-q1-profit\"> at $2 billion<\/a> with its fair value at $3.82 billion at the time, according to <a href=\"https:\/\/bitcointreasuries.net\/\">BitcoinTreasuries<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;A report on the position in digital assets in accordance with the proposed FASB fair-value model would provide investors with a more up-to-date view of our financial position and the economic value of our bitcoins&#8221;,<\/em> the company explained.<\/p>\n<\/blockquote>\n<p>MicroStrategy stressed that fair-value accounting for cryptocurrencies is a more useful and balanced model for investors than the current approach, which recognizes only a decrease in value, while subsequent increases are not accounted for.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;Ultimately, a distorted picture of the organisation&#8217;s ownership of digital assets is formed, which may confuse investors unfamiliar with the accounting standard&#8221;,<\/em> the statement said.<\/p>\n<\/blockquote>\n<p>In April 2023, the company\u2019s position in Bitcoin<a href=\"https:\/\/u1f987.com\/en\/news\/microstrategys-bitcoin-position-turns-positive-after-breaching-30000\"> turned positive<\/a> after breaching $30,000.<\/p>\n<p>In November 2022, executive chairman Michael Saylor<a href=\"https:\/\/u1f987.com\/en\/news\/michael-saylor-reaffirms-microstrategys-plan-to-continue-buying-bitcoin\"> reaffirmed MicroStrategy&#8217;s stance<\/a> on further purchases of digital gold.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The analytics software provider MicroStrategy backed the FASB proposal, which envisions fair-value accounting for cryptocurrencies on the balance sheet.<\/p>\n","protected":false},"author":1,"featured_media":79186,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,1207,36,1252],"class_list":["post-79185","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-microstrategy","tag-regulation","tag-reports"],"aioseo_notices":[],"amp_enabled":true,"views":"131","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/79185","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=79185"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/79185\/revisions"}],"predecessor-version":[{"id":79187,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/79185\/revisions\/79187"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/79186"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=79185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=79185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=79185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}