Investment company accounting for crypto intangible assets
Issues in depth | February 2025
Accounting, presentation and disclosure requirements for crypto intangible assets by investment companies.
Crypto intangible assets like bitcoin and ether are accounted for by investment companies as ‘other investments’ under ASC 946-325. The FASB’s new crypto asset guidance, ASC 350-60, gives rise to additional presentation and disclosure considerations. Our Issues In-Depth explains.
Applicability
- Investment companies subject to ASC 946 that invest in crypto intangible assets like bitcoin and ether.
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. In this publication, we provide our perspectives on accounting for crypto intangible assets (a subset of all digital assets) by investment companies.
The issues and considerations we identify herein are not exhaustive, and our views and observations may not reflect the only acceptable views in practice in this evolving area. Our perspectives may change as practice continues to develop, if the FASB expands on or amends its US GAAP guidance on the accounting for crypto intangible assets, or if the SEC staff expresses new or amended views.
We encourage investment companies to discuss their accounting for crypto intangible assets, as well as other digital assets, and their specific facts and circumstances with their auditors or other accounting advisors.
Report contents
- In a snapshot
- What is a ‘crypto intangible asset’?
- Scope
- When you buy or otherwise acquire
- While you hold a crypto intangible asset
- When you sell or otherwise transfer
- Financial statement presentation
- Disclosures
- Effective date and transition for ASC 350-60
Download the document:
Crypto intangible assets
Download PDFExplore more
Resource
Accounting and reporting for crypto intangible assets
Accounting, presentation and disclosure for crypto intangible assets both in and out of scope of ASC 350-60.
Resource
Accounting for nonfungible tokens (NFTs)
What your company should know as an NFT seller, purchaser, marketplace or custodian.
Crypto and other digital assets: Hot Topics
Read about the latest hot button issues related to crypto and other digital assets.
Resource
FASB issues final ASU on crypto asset accounting
ASU 2023-08 introduces fair value measurement, separate presentation and new disclosures for in-scope crypto assets.
Meet our team
Subscribe to stay informed
Receive the latest financial reporting and accounting updates with our newsletters and more delivered to your inbox.
Accounting Research Online
Access our accounting research website for additional resources for your financial reporting needs.