Crypto Accounting Plan Would Have Net Income Reflect Value Swings

Companies like MicroStrategy Inc., Tesla Inc., and Block Inc. that stash bitcoin in company coffers would have to highlight their holdings in separate balance sheet line items and record swings in value as hits or boosts to net income, under a plan taking shape from US accounting rulemakers.

The aim is to give readers of financial statements maximum transparency into how the market value of cryptocurrencies affects businesses’ bottom lines, unanimous Financial Accounting Standards Board members said Wednesday.

“There were some concerns expressed by a handful of people about volatility in the income statement, but that volatility reflects real exposure ...