US Board to Propose Stablecoin Accounting Examples for Input (1)

The US accounting board directed staff Wednesday to draft a proposal that would add examples in their rulebook to help companies assess whether cryptocurrencies like stablecoins can be treated similarly to cash in their financial reports.

The Financial Accounting Standards Board unanimously agreed to provide illustrative examples in statement of cash flow guidance to clarify whether certain digital assets may meet the existing definition of “cash equivalents” reserved for highly liquid, short-term investments. The board decided on a 90-day comment period for the forthcoming draft update to gather feedback from investors, companies, accounting firms, and crypto industry groups, among others. ...