FASB to issue final standard on measuring crypto assets

The FASB voted to issue a final standard for certain crypto assets that will be effective for calendar-year-end companies in 2025 with early adoption permitted. It will require in-scope crypto assets to be subsequently measured at fair value with changes recorded in the income statement. The scope criteria will be largely unchanged from the exposure draft. That is, to be in scope, the crypto asset must be an intangible asset and not provide the holder with a right to goods, services, or other assets, along with certain other criteria. This means that crypto assets that provide the holder with the right to other crypto assets that would otherwise be in scope of the standard (e.g., wrapped tokens) are not in scope.

The standard will require separate presentation of (1) in-scope crypto assets from other intangible assets and (2) changes in the fair value of those crypto assets. Disclosure of significant crypto asset holdings and an annual reconciliation of the beginning and ending balances of crypto assets will also be required.