Accounting and reporting for crypto intangible assets
Issues In-Depth| December 2024
Accounting, presentation and disclosure for crypto intangible assets both in and out of scope of ASC 350-60.
Many of the most common digital assets (e.g. bitcoin, ether, solana, cardano) are accounted for as intangible assets under US GAAP (crypto intangible assets). ASC 350-60 requires all crypto intangible assets in its scope to be measured at fair value after acquisition, and creates new presentation and disclosure requirements for those assets. Our Issues-In-Depth outlines the accounting and reporting for both in-scope and out-of-scope crypto intangible assets.
Applicability
- Entities that have, or are planning to acquire, crypto intangible assets 鈥� except for broker-dealers subject to ASC 940 or investment companies subject to ASC 946
Key impacts
Digital asset use cases and offerings continue to evolve and proliferate, but there remains only limited US GAAP that explicitly addresses the accounting for digital assets. We provide our perspectives on accounting for crypto intangible assets (a subset of all digital assets) by commercial and not-for-profit entities and summarize the guidance that applies to them.
The issues and considerations we identify are not exhaustive, and our views and observations may not reflect the only acceptable ones in practice in this evolving area. Our perspectives may change as practice continues to develop, if the FASB expands or amends its US GAAP guidance on the accounting for crypto intangible assets, or if the SEC staff expresses views.
We encourage entities to discuss their accounting for crypto intangible assets (and other digital assets) and their specific facts and circumstances with their auditors or other accounting advisors.
Report contents
- In a snapshot
- What is a 鈥榗rypto intangible asset鈥�?
- Scope of ASC 350-60
- When you buy or otherwise acquire
- While you hold a crypto intangible asset
- When you sell or otherwise transfer
- Financial statement presentation
- Disclosures
- Effective dates and transition for ASC 350-60
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Accounting and reporting for crypto intangible assets
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