Accounting Rules Make the Outcome of Tesla’s Bitcoin Sale Unclear


Unfortunately, because bitcoin is treated as an indefinite-lived intangible asset, the company is not allowed to increase the value of the bitcoin to accurately represent the financial reality that the asset it holds is now worth more. Mark-to-market assets, in contrast, allow companies to adjust the value of an asset to reflect its value as determined by current market conditions. If bitcoin were allowed to be treated as a mark-to-market asset, companies could do this.



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