john on Nostr: Because when it goes down from their cost basis they have to book the loss under ...

Because when it goes down from their cost basis they have to book the loss under default FASB rules, but when it goes up they aren't allowed to mark it to market. Under the new rules they will be able to but they haven't changed their accounting method yet. I think the new rules went into effect at the beginning of this year. So if they buy at 100,000 and it goes to 90,000 it goes on their book as a -10 loss. If it goes from 90 later to 120,000 it still has to say 90 on their books until they adopt the the new FASB rules