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About the Crypto assets guide & Full guide PDF
Publication date: 31 Dec 2023
us Crypto assets guide
A PDF version of this publication is attached here: Crypto assets guide - December 2023 (PDF 1.52mb)
PwC is pleased to offer our updated accounting and financial reporting Crypto assets guide. This guide discusses the relevant accounting and reporting considerations related to crypto assets.
This guide summarizes the applicable accounting literature, including relevant references to and excerpts from the FASB’s Accounting Standards Codification. It also provides our insights and perspectives, interpretative and application guidance, illustrative examples, and discussion on emerging practice issues.
This guide should be used in combination with a thorough analysis of the relevant facts and circumstances, review of the authoritative accounting literature, and appropriate professional and technical advice.
References to US GAAP
Definitions, full paragraphs, and excerpts from the FASB’s Accounting Standards Codification are clearly labelled. In some instances, guidance was cited with minor editorial modification to flow in the context of the PwC Guide. The remaining text is PwC’s original content.
References to other PwC guidance
This guide provides general and specific references to chapters in other PwC guides to assist users in finding other relevant information. References to other guides are indicated by the applicable guide abbreviation followed by the specific section number. The other PwC guides referred to in this guide, including their abbreviations, are:
- Derivatives and hedging (DH)
- Fair value measurements (FV)
- Financial statement presentation (FSP)
- Not-for-profit entities (NP)
- Property, plant, equipment and other assets (PPE)
- Revenue from contracts with customers (RR)
Summary of significant changes
The following is a summary of recent noteworthy revisions to the guide. Additional updates may be made to future versions to keep pace with significant developments.
Revisions made in December 2023
Chapter 1: Introduction
- CA 1.1 was updated to add a summary of the new guidance on the accounting for and disclosure of crypto assets in scope of ASC 350-60.
Chapter 2: Holding crypto assets
- CA 2.4 through CA 2.4.2 were added to address the accounting for crypto assets in scope of ASC 350-60.
Chapter 3: Crypto transactions
- CA 3.3 was updated to include additional guidance on the accounting for staking rewards.
- CA 3.5 was updated to explain that the issuer of ICO tokens should not account for such tokens under ASC 350-60.
- CA 3.6 was updated to address the accounting for crypto assets in scope of ASC 350-60 by not-for-profit entities.
- CA 3.7.1 was updated to clarify that the scope of SAB 121 applies to broker-dealers in the scope of ASC 940, Financial Services—Brokers and dealers.
- Former CA 3.7.5, SAB 121: effective date and transition, was removed since SAB 121 is now effective for all in-scope entities (addressed in CA 3.7.1).
Chapter 4: Fair value of crypto assets
- CA 4.1.1 was enhanced to discuss the use of a quoted price in an active market and other valuation-related issues related to inactive markets.
- CA 4.1.3 was updated to address valuation considerations depending on whether the crypto assets are in scope of ASC 350-60.
Chapter 5: Disclosure of crypto assets
- Figure CA 5-1 in CA 5.1 was updated to provide additional presentation and disclosure requirements for crypto assets in scope of ASC 350-60 and to include reference to the AICPA’s Digital Assets Practice Aid for examples of disclosures that may be applicable to the lender in a crypto lending arrangement.
- Discussion of the exposure draft issued by the AICPA Assurance Services Executive Committee on proposed criteria for the reporting on the sufficiency of assets for redemption (e.g., cash, cash equivalents, other assets) specific to asset-backed tokens pegged to a fiat currency (commonly referred to as “stablecoins”) was added to CA 5.1.
- CA 5.4 through CA 5.4.2 were added to address the presentation and disclosure requirements for crypto assets in scope of ASC 350-60.
Revisions made in February 2023
Chapter 3: Crypto transactions
- CA 3.4 was revised to incorporate the AICPA’s updated guidance on the accounting for crypto asset lending in Question 25 of the AICPA’s Practice Aid, Accounting for and auditing of digital assets (“Digital Assets Practice Aid”).
Chapter 5: Disclosure of crypto assets
- CA 5.1 was updated to include additional disclosure considerations outside of the financial statements for SEC registrants based on the SEC’s Sample Letter to Companies Regarding Recent Developments in Crypto Asset Markets.
- CA 5.3 was added to address disclosure matters related to crypto asset lending based on the updated AICPA Digital Assets Practice Aid.
Copyrights
This publication has been prepared for general informational purposes, and does not constitute professional advice on facts and circumstances specific to any person or entity. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication. The information contained in this publication was not intended or written to be used, and cannot be used, for purposes of avoiding penalties or sanctions imposed by any government or other regulatory body. PricewaterhouseCoopers LLP, its members, employees, and agents shall not be responsible for any loss sustained by any person or entity that relies on the information contained in this publication. Certain aspects of this publication may be superseded as new guidance or interpretations emerge. Financial statement preparers and other users of this publication are therefore cautioned to stay abreast of and carefully evaluate subsequent authoritative and interpretative guidance.
The FASB material is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, and is reproduced with permission.
PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
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