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FASB issues final ASU on crypto asset accounting

Defining Issues | December 2023

ASU 2023-08 introduces fair value measurement, separate presentation and new disclosures for in-scope crypto assets.

ASU 2023-08, Accounting for and Disclosure of Crypto Assets, creates ASC 350-60 (crypto assets), specifying subsequent measurement, presentation and disclosure requirements for all digital assets within its scope (e.g. bitcoin and ether).


Final ASU

  • Entities with or considering investments in crypto or other digital assets

Relevant dates

Effective datesAll entities
Annual periods – Fiscal years beginning afterDecember 15, 2024
Interim periods – In fiscal years beginning after    December 15, 2024
Early adoption permitted?Yes, in any interim or annual period for which an entity’s financial statements have not been issued (or made available for issuance) as of the beginning of the entity’s fiscal year.

Key Impacts:

The following apply equally to public and private entities; however, certain provisions do not apply to entities applying industry-specific US GAAP (e.g. ASC 946 on investment companies).

Scope of ASC 350-60

The guidance applies to assets that satisfy the following criteria:

  • Meet the US GAAP definition of an intangible asset
  • Do not provide the asset holder with enforceable rights to or claims on underlying goods, services or other asset(s)
  • Reside or are created on a distributed ledger (i.e. blockchain or similar technology)
  • Are secured through cryptography
  • Are fungible
  • Are not created or issued by the reporting entity or its related parties

Measurement of in-scope crypto assets

  • Subsequently measured at fair value under ASC 820, with fair value changes recorded in net income (see ‘Presentation’ below) 
  • Does not require or permit an alternative measurement (e.g. historical cost less impairment, for crypto assets not traded in an active market)
  • Does not provide guidance on how to recognize or present commissions, transaction fees and other charges incurred to acquire crypto assets


  • Balance sheet – In-scope crypto assets presented separately from other intangible assets.
  • Income statement – Gains and losses from remeasuring in-scope crypto assets recorded in net income, separately presented from impairments or other changes to carrying amounts of other intangible assets.
  • Statement of cash flows – In general, entities will simply follow the guidance in Topic 230. However, the Subtopic creates specific requirements for cash inflows from (1) the sale of in-scope crypto assets received as noncash consideration in the ordinary course of business and converted ‘nearly immediately’ into cash, and (2) the near immediate liquidation of crypto assets received by NFPs as donations.

‘Nearly immediately’ refers to a prompt conversion that should generally be interpreted as a short period of time (e.g. a matter of days, or even hours, rather than weeks).


The following disclosures are required in entities’ interim and annual financial statements:

  • Name, cost basis, fair value, and number of units held for each significant (as determined by fair value) crypto asset holding (e.g. bitcoin, ether)
  • Aggregate cost basis and fair value of crypto asset holdings that are not individually significant
  • Name and fair value of crypto assets subject to contractual sale restrictions as of the balance sheet date, as well as information about:
    • the nature and remaining duration of the restriction(s); and
    • what conditions must be met to remove the restriction(s).
  • The following disclosures are required only annually: 
  • The fair value disclosures required by ASC 820;
  • The method used to determine the cost basis of the entity’s crypto asset holdings (e.g. FIFO, specific identification);
  • The line-item(s) in which gains and losses are reported in the income statement, if not separately presented;
  • A rollforward of the entity's crypto asset holdings (other than crypto assets received as noncash consideration in the ordinary course of business and converted nearly immediately into cash) in the aggregate, showing additions, disposals, and remeasurement gains and losses, along with disclosure about the nature of additions (e.g. purchases or mining rewards) and/or disposals; and
  • Total cumulative realized gains and losses from dispositions during the year.


  • The new ASU must be adopted on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings (or other appropriate components of equity or net assets) as of the beginning of the fiscal year of adoption.

Report contents

  • Source and applicability
  • Fast facts, impacts and actions
  • Background
  • Scope of the ASU
  • Measurement of in-scope crypto assets
  • Financial statement presentation
  • Disclosures
  • Effective dates and transition

Download the document:

FASB issues ASU

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Constituents to FASB: Crypto asset accounting guidance urgently needed

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