Accounting for Digital Assets: Key Considerations

This paper explores the accounting implications of recent investment in and use of digital assets, including, but not limited to, cryptocurrencies. The paper aims to identify and illustrate how digital assets are accounted for and reported under US Generally Accepted Accounting Principles (US GAAP), as upheld by the Financial Accounting Standards Board (FASB), including comparisons with the International Financial Reporting Standards (IFRS), as upheld by the International Accounting Standards Board.

As use of digital assets becomes more pervasive, alternative approaches to accounting for digital assets should be introduced under US GAAP and IFRS to create more useful financial reporting information. At present, many market participants believe the existing accounting frameworks do not provide decision-useful information to users of financial statements.

The US Securities and Exchange Commission has received a number of questions relating to digital asset-related transactions or business models. The topics covered include: (1) when digital assets represent an asset or liability of the registrant; (2) determining the cost basis for digital assets; and (3) revenue recognition considerations. The FASB issued a consultation in 2021 to invite stakeholder feedback about the future standard-setting agenda of the FASB, and the vast majority of respondents identified digital assets as a top priority. Out of 522 responses received by the FASB, 445 responses from a variety of stakeholders focused solely on accounting for digital assets. Those respondents included academics, holders of digital assets, individuals, investors and other preparers,
practitioners and users of financial statements.

In this paper, it is proposed that the framework for accounting for digital assets should allow for such assets to be accounted for at fair value

Documents (1) for Accounting for Digital Assets: Key Considerations

ISDA Expands SwapsInfo with US FX Derivatives Data

ISDA has expanded its SwapsInfo website to include data on US-reported foreign exchange (FX) derivatives, further increasing transparency in the over-the-counter (OTC) derivatives market. The new FX section provides insights into trading activity in FX forwards, swaps and options. Users...

ISDA Feedback on Identifying Reference Data

On July 20, ISDA submitted feedback to the European Securities and Markets Authority (ESMA) on draft Level 3 guidance on several technical issues caused by the interaction of the recently adopted regulatory technical standard on derivatives transparency (RTS 2) and...

US Basel III Endgame 2026 Update

In March 2026, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation published a new proposal for capital rules known as the US Basel III, based...