The Financial Accounting Standards Board (FASB) is preparing a new rule proposal that would improve the accounting for and disclosure of certain crypto assets, The Wall Street Journal reported.

The disclosure plan outlined Wednesday would, if approved, provide specific accounting or disclosure rules for crypto assets in the United States.

This is the latest move by the FASB in its project. Earlier this year, the Journal reported that the board detailed criteria for the assets it will include in this project, leaving out nonfungible tokens and certain stablecoins, then saying that companies should use fair-value accounting to measure bitcoin and other crypto assets to create accounting standards for digital assets.

Currently, businesses classify digital assets as indefinite-lived intangible assets, similar to such patents and trademarks. Under the proposed rules, public and private companies would have to highlight the amount of their crypto assets separately from the amount of other intangible assets in their financial statements. They would also have to include gains and losses in crypto assets in their net income, separate from any changes in the amounts companies would record for other intangible assets. 

The FASB said companies should disclose a table of significant crypto-asset holdings by fair value as of the end of each quarterly and annual period, meaning that companies would be required to disclose the fair value of any restricted crypto assets in quarterly and annual filings.

This change in measurement should result in a different presentation in financial statements for companies, FASB board member Fred Cannon told the Journal. “I think moving to fair value really does allow investors more useful information that’s critical,” he said. 

The FASB expects to vote on whether to propose a crypto rule early next year, a spokeswoman told the Journal. If approved, a proposal would be issued in the first half of 2023.