FASB Issues Standard to Improve the Accounting for and Disclosure of Certain Crypto Assets

FASB Issues Standard to Improve the Accounting for and Disclosure of Certain Crypto Assets

• 15 January 2024
• Accounting
• South African Accounting Academy

The amendments in the ASU 2023-08—Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets improve the accounting for certain crypto assets by requiring an entity to measure those crypto assets at fair value each reporting period with changes in fair value recognized in net income. The amendments also improve the information provided to investors about an entity's crypto asset holdings by requiring disclosure about significant holdings, contractual sale restrictions, and changes during the reporting period. 

The amendments in the ASU apply to all assets that meet all the following criteria:

1. Meet the definition of intangible asset as defined in the FASB Accounting Standards Codification®

2. Do not provide the asset holder with enforceable rights to or claims on underlying goods, services, or other assets

3. Are created or reside on a distributed ledger based on blockchain or similar technology

4. Are secured through cryptography

5. Are fungible

6. Are not created or issued by the reporting entity or its related parties.

The amendments in the ASU are effective for all entities for fiscal years beginning after 15 December 2024, including interim periods within those fiscal years.

Click here to download the Accounting Standards Update:

https://fasb.org/Page/ShowPdf?path=ASU+2023-08.pdf&title=ACCOUNTING+STANDARDS+UPDATE+2023-08%E2%80%94Intangibles%E2%80%94Goodwill+and+Other%E2%80%94Crypto+Assets+%28Subtopic+350-60%29%3A+Accounting+for+and+Disclosure+of+Crypto+Assets&acceptedDisclaimer=true&IsIOS=false&Submit=

Relevance to Auditors, Independent Reviewers & Accountants:

• Accountants, auditors, independent reviewers and compilers of financial statements should stay up-to-date with the latest developments and information that affect accountants and compilers – especially those issued by regulators such as the FASB.

• This ASU will affect everyone involved in the accounting & disclosure of crypto assets.

Relevance to Your Clients:

• Compilers of financial statements should stay up-to-date with the latest developments and information that affect accountants and compilers.

• This ASU will affect everyone involved in the accounting & disclosure of crypto assets.

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