FASB Approves Cryptoassets Standard

September 7, 2023

The FASB recently voted to issue a cryptoassets standard requiring entities to report on fungible crypto holdings using the fair value measurement standard.

The final standard will require reporting entities to:

  • At a minimum, present the aggregate amount of cryptoassets separately from other intangible assets measured using other measurement bases
  • Present gains and losses on cryptoassets in net income and present those gains and losses separately from the income statement effects of other intangible assets
  • Classify cryptoassets received as noncash consideration during the ordinary course of business that are converted nearly immediately into cash as operating cash flows

Cryptoassets that meet all of the following criteria fall within the scope of the standard:

  • Meet the definition of intangible assets as defined in the Codification Master Glossary
  • Do not provide the asset holder with enforceable rights to, or claims on, underlying goods, services or other assets
  • Are created or reside on a distributed ledger based on blockchain technology
  • Are secured through cryptography
  • Are fungible
  • Are not created or issued by the reporting entity or its related parties

The final standard will be effective for fiscal years beginning after Dec. 15, 2024.