The U.S. Financial Accounting Standards Board (FASB) is set to release a draft cryptocurrency accounting standard, a proposal that would require companies to reflect changes in value, including cryptocurrency (virtual asset) gains and losses, in their quarterly earnings reports.

Until now, companies have accounted for cryptocurrencies as intangible assets in their audited financial statements in accordance with American Institute of Certified Public Accountants (AICPA) guidelines, arguing that accounting for cryptocurrencies as intangible assets only reflects declines in value and does not provide useful information for investment decisions.

If the price increased, it could not be accounted for and the gain could only be included in the accounting upon disposal, and companies that held or invested in cryptocurrency could only value the asset once a year, which did not reflect fair value.

The FASB emphasized that this does not reflect the underlying economics of the asset and does not provide useful information for decision-making. "These changes will provide investors with greater transparency about the fair value of an entity's cryptocurrency assets and additional disclosures about changes in those holdings," FASB Chairman Richard Jones said in a statement about the latest proposal.

The proposal is open for comment until June 6.

However, the International Accounting Standards Board (IASB) has reportedly rejected requests to allow cryptocurrencies to be accounted for.

The Financial Accounting Standards Board (FASB) 

The U.S. Financial Accounting Standards Board (FASB) is an independent private sector organization that sets accounting and financial reporting standards for public and private companies and not-for-profit organizations in the United States.

As the primary organization responsible for developing and improving accounting standards, the FASB's mission is to establish and improve financial accounting and reporting standards to provide useful information to investors, creditors, and other users of financial statements.

The FASB's standards are recognized as authoritative by the SEC and the American Institute of Certified Public Accountants (AICPA). Publicly traded companies in the United States are required to comply with FASB standards, but private companies and nonprofit organizations can voluntarily adopt these standards.

Overall, the FASB plays an important role in setting accounting standards and ensuring the quality and transparency of financial reporting in the United States.

IASB 

The International Accounting Standards Board (IASB) is an independent global organization that develops and promotes the use of International Financial Reporting Standards (IFRS).

The IASB works closely with national standard-setting bodies and other stakeholders, including regulators, investors, and financial statement preparers, to develop and improve IFRSs, which are designed to provide transparent and comparable financial statement information to financial statement users around the world.

IFRS are recognized as authoritative in many countries around the world, including the European Union, Australia, Canada, and Japan. Compliance with IFRS is mandatory for many publicly traded companies in these countries, as well as for companies seeking to raise capital in global markets.

The IASB also works with other international organizations, such as the Financial Stability Board (FSB) and the International Organization of Securities Commissions (IOSCO), to promote the development of high-quality financial reporting standards.

Overall, the IASB plays an important role in promoting the global adoption of high-quality financial reporting standards and facilitating the comparability and transparency of financial information across borders.

The future of IT audits due to cryptocurrency accounting standards 

The FASB's proposed cryptocurrency accounting standard is also closely related to the future demand for IT audits, as it will require companies to have reliable and accurate information systems in place to record and report cryptocurrency transactions. Auditors will need to understand the technical aspects of cryptocurrencies and the blockchain technology that underlies them in order to perform effective IT audits. In addition, the adoption of new standards may require companies to upgrade their existing IT systems to comply with the new requirements, further increasing the need for IT audit services. As the use of cryptocurrencies and blockchain technology continues to grow, IT audits will become increasingly important in ensuring the reliability and accuracy of financial reporting in this space.