First US Crypto Accounting Rules Capture Token Highs, Lows (1)

Companies like enterprise software maker MicroStrategy, electric auto manufacturer Tesla, and payments processor Block will get to capture the highs and lows of their cryptocurrency holdings under new accounting rules published Wednesday.

Crypto companies and any other companies that hold Bitcoin or Ethereum will be required to record their coins at fair value, a measurement technique that aims to capture their most up-to-date value, the Financial Accounting Standards Board said in its first crypto accounting rules. Changes in fair value will get recorded in net income.

Outgoing practice only lets companies record the lows, and businesses that bet ...