The post US Accounting Board Eyes Standards for Crypto Asset Transfers appeared on BitcoinEthereumNews.com. FASB is considering new rules for accounting crypto transfers to reduce confusion over when assets leave a company’s books. The board may expand 2023 fair-value standards or create specific derecognition rules. Clearer rules could boost mainstream adoption, improve reporting consistency. The US Financial Accounting Standards Board (FASB) is preparing to review how companies report cryptocurrency transfers. Bloomberg reports the board will discuss next week whether to add “accounting for crypto asset transfers” to its technical agenda. The discussion focuses on whether FASB should expand its 2023 crypto accounting rules or set clearer standards for when assets move between wallets, custodians, or service providers. Right now, companies often handle these transfers differently, making reporting inconsistent. Push to Fix Derecognition Confusion A key issue is deciding when a crypto asset should be removed from a company’s books. Currently, ambiguity exists when an asset leaves a company’s control, especially if it moves to an external custodian or an internal wallet that is not fully tracked in accounting systems. This leads to different interpretations and inconsistent reporting. FASB is considering two main approaches: Expanding the scope of the 2023 fair-value crypto standards, or Adding formal derecognition rules specifically for digital asset transfers. It could pursue both. This review comes just weeks after FASB began a separate project on whether certain digital assets, like stablecoins, can be classified as cash equivalents. Related: Bitcoin Stages A Comeback Following FASB’s New Standards Release Why This Matters for Institutions Clear rules would reduce uncertainty for companies that hold or move crypto. Currently, accounting teams must force new asset types into old frameworks, which can cause misreporting and compliance challenges. Audit teams also struggle to verify transfers when assets move between wallets or custodians without standard guidance. If FASB adds this project to its agenda, companies would finally have… The post US Accounting Board Eyes Standards for Crypto Asset Transfers appeared on BitcoinEthereumNews.com. FASB is considering new rules for accounting crypto transfers to reduce confusion over when assets leave a company’s books. The board may expand 2023 fair-value standards or create specific derecognition rules. Clearer rules could boost mainstream adoption, improve reporting consistency. The US Financial Accounting Standards Board (FASB) is preparing to review how companies report cryptocurrency transfers. Bloomberg reports the board will discuss next week whether to add “accounting for crypto asset transfers” to its technical agenda. The discussion focuses on whether FASB should expand its 2023 crypto accounting rules or set clearer standards for when assets move between wallets, custodians, or service providers. Right now, companies often handle these transfers differently, making reporting inconsistent. Push to Fix Derecognition Confusion A key issue is deciding when a crypto asset should be removed from a company’s books. Currently, ambiguity exists when an asset leaves a company’s control, especially if it moves to an external custodian or an internal wallet that is not fully tracked in accounting systems. This leads to different interpretations and inconsistent reporting. FASB is considering two main approaches: Expanding the scope of the 2023 fair-value crypto standards, or Adding formal derecognition rules specifically for digital asset transfers. It could pursue both. This review comes just weeks after FASB began a separate project on whether certain digital assets, like stablecoins, can be classified as cash equivalents. Related: Bitcoin Stages A Comeback Following FASB’s New Standards Release Why This Matters for Institutions Clear rules would reduce uncertainty for companies that hold or move crypto. Currently, accounting teams must force new asset types into old frameworks, which can cause misreporting and compliance challenges. Audit teams also struggle to verify transfers when assets move between wallets or custodians without standard guidance. If FASB adds this project to its agenda, companies would finally have…