TROPTIONS.GOLD and the FASB’s New Digital Asset Accounting Standards: A Game-Changer for Balance Sheets.
The Financial Accounting Standards Board (FASB) recently announced a pivotal shift in accounting standards for digital assets. On October 12, 2022, FASB disclosed that crypto assets will now be measured at fair value under ASC 820. This decision marks a substantial departure from the old rules for accounting under Generally Accepted Accounting Principles (GAAP), particularly benefiting companies holding assets like TROPTIONS.GOLD. This change is poised to enhance transparency, simplify reporting, and make financial statements more reflective of true asset values. The Old Rule: A Burden for Digital Asset Holders Previously, crypto assets, including TROPTIONS.GOLD were classified as long-lived intangible assets. This meant they were initially recorded at historical cost and subjected to rigorous impairment testing. If the asset’s value declined, companies were required to record impairment charges as expenses. However, if the value increased, the gains were ignored. For example: If TR...
