FASB Issues New Guidance on Crypto Asset Accounting

The growing presence of crypto assets on corporate balance sheets is no longer an experimental phenomenon. It reflects a structural shift in how companies manage value and liquidity, as crypto assets become a permanent part of corporate finance.

However, traditional accounting guidance has lagged behind this practice, prompting the Financial Accounting Standards Board to issue ASC 350-60 in 2023 (effective for fiscal years beginning after Dec. 15, 2024) to address key gaps.

Under ASC 350-60, eligible crypto assets are measured at fair value each reporting period, with all gains and losses recognized in earnings. This replaces the earlier impairment-only approach, where losses were recognized but gains were not.