/terminal research library 975


Publish Date: 15-02-2021

Publish Frequency:

Source: MicroStrategy


Type: Report

Synopsis: Upon consideration of the questions listed below, the Company has concluded that its Investment in bitcoin is to be accounted for as an asset of the Company and accounted for based on the guidance within FASB ASC 350 Intangibles – Goodwill and Other. The Company will record impairment losses as the fair value falls below the carrying value of the Investment, and such impairment losses are not able to be reversed upon a subsequent increase in fair value. Upon sale of the Investment, the Company will record a sale pursuant to FASB ASC 610 Other Income and record any gain or loss on sale based on the fair value at the date of sale. The remainder of this memo outlines the accounting considerations to support these conclusions.

Public Link: https://www.microstrategy.com/content/dam/website-assets/collateral/bitcoin-downloads/MicroStrategy-Bitcoin-Accounting-Treatment-and-Tax-Considerations.pdf

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Orgs: MicroStrategy

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