Cryptocurrency Accounting and Reporting
New FASB Guidance
In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-08, "Intangibles, Goodwill, and Other—Crypto Assets (Subtopic 350)." This ASU provides guidance on the accounting and reporting of cryptocurrency assets and related transactions.
Key Considerations
Some key considerations related to cryptocurrency accounting and reporting include:
- Classification: Cryptocurrencies can be classified as intangible assets, inventory, or financial instruments, depending on their intended use.
- Valuation: Cryptocurrencies are typically valued at fair market value, which can be volatile.
- Impairment: Cryptocurrencies can be subject to impairment if their fair market value declines below their carrying value.
- Reporting: Cryptocurrencies should be disclosed in the financial statements in accordance with the relevant accounting standards.
PwC's Perspective
PwC is pleased to offer our updated accounting and reporting guidance for cryptocurrency assets. Our team of experts can assist you with:
- Applying the new FASB guidance
- Classifying and valuing cryptocurrencies
- Assessing impairment
- Preparing financial statements that comply with the relevant accounting standards
For more information, please contact your PwC representative.
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