FASB Accounting Rule Changes to Benefit Companies Holding Digital Assets, According to Report
A recent report suggests that changes to the accounting rules by the Financial Accounting Standards Board (FASB) will be advantageous for companies holding digital assets. These changes aim to address the negative impressions caused by impairment losses.
The report highlights that the FASB intends to implement the new rules by 2025, but companies will have the choice to adopt them earlier. It specifically mentions that MicroStrategy, a prominent player in the digital asset space, plans to exercise this option.
Berenberg, a German bank, has expressed a positive outlook on MicroStrategy, assigning it a buy rating and setting a price target of $510. On Thursday, the stock closed at $353.07.
Furthermore, Stifel, a U.S. investment bank, suggests that American companies may become more open to holding digital assets on their balance sheets, particularly during profitable market periods, due to the positive impact on their financial performance.
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