- In June 2021, the FASB published an ‘Invitation to Comment’ in hopes to get feedback from its future standard-setting agenda.
- One of those who replied is MicroStrategy.
- In response, MicroStrategy issued a 6-page letter telling the FASB to “take action on the accounting for digital assets.”
In June 2021, the FASB team published an ITC or ‘Invitation to Comment’ to its stakeholders. FASB did this to take feedback from its partners about its future standard-setting agenda. In response to this, MicroStrategy issued a 6-page letter telling FASB to “take action on the accounting for digital assets.”
According to FASB, ITC’s agenda consultation process intends to complement — not replace — the FASB’s formal agenda request process. More so, the feedback will help the FASB in making decisions regarding the potential changes on its agenda. Also, the FASB says this is essential for ensuring that it will continue to achieve standard-setting projects.
In detail, the FASB encourages other stakeholders to submit more agenda requests. Read the invitation here. On the other hand, MicroStrategy responded to this ITC. In the 6-page letter, MicroStrategy President and CFO, Phong Lee, said:
We fully support the ongoing mission of the Financial Accounting Standards Board (“FASB”) to improve financial accounting and reporting standards in the United States… We appreciate the opportunity to respond to the FASB’s Invitation to Comment, Questions 11-12, with respect to digital assets – in particular, digital assets such as bitcoin.
The letter emphasized MicroStrategy’s urge for the FASB to take action towards accounting digital assets like Bitcoin (BTC); moreover, updating the accounting model to reflect changes in fair value.
MicroStrategy also proposed a solution saying that using a fair value approach to digital assets “will provide for greater transparency to investors” as well as “limit the risk of disparate disclosure” in companies. With this, MicroStrategy says “the need to change is now”.
To know more about MicroStrategy’s letter, you can read it here.