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
Latest
ISDA Response to EC on Environmental Legislation
On September 10, ISDA, the Association for Financial Markets in Europe (AFME) and the European Fund and Asset Management Association (EFAMA) submitted a joint response to the European Commission’s (EC) call for evidence on reducing the administrative burden in environmental...
Credit Derivatives Trading Activity Q2 2025
This report analyzes credit derivatives trading activity reported in Europe. The analysis shows European credit derivatives transactions based on the location of reporting venues (EU versus UK) and product type. The report also compares European-reported credit derivatives trading activity to...
ISDA Trading and Treasury Forum: CEO Remarks
ISDA Derivatives Trading and Treasury Forum London, September 16, 2025 Opening Remarks Scott O’Malia ISDA Chief Executive Officer Good morning, and welcome to the ISDA Derivatives Trading and Treasury Forum. Thank you to CME Group for partnering with us...
Recognition of Cross-product Netting is Critical
US regulators are in the process of making important changes to the regulatory capital framework by proposing modifications to the enhanced supplementary leverage ratio, which should help stop it from acting as a non-risk-sensitive constraint on bank capacity – a...