FASB Crypto Accounting Review Won’t Include NFTs, Certain Stablecoins: Report
The Financial Accounting Standards Board (FASB) is excluding non-fungible tokens (NFTs) and certain stablecoins from its cryptocurrency accounting review, the Wall Street Journal reported.
On Wednesday, the board described its criteria for crypto assets that would be covered by a long-awaited rule for companies to account for and disclose their holdings of digital assets.
FASB did not name specific crypto assets that would be excluded from the rule. But it said the digital assets addressed by the rule would include those that are intangible, don’t carry contractual rights to cash flows or ownership of goods and services, and those that are fungible, according to the Journal. NFTs are by their very nature fungible and may carry rights to underlying assets, while some stablecoins are tangible assets.
FASB board member Susan Cosper told the Journal that not many companies had invested in NFTs yet. “It’s not pervasive or material at this juncture," she said, adding “it’s certainly something that we can focus on later if need be.”