What are the accounting and disclosure rules for crypto assets?

There are no specific accounting or disclosure rules for crypto assets in the U.S. Businesses now classify crypto assets as indefinite-lived intangible assets, similar to intellectual property such as copyrights. Companies have to review the value of such assets at least once a year and write it down if it drops below the purchase price.

Is a crypto asset a fungible asset?

The crypto asset meets the U.S. GAAP definition of an intangible asset. The holder does not have “enforceable rights to or claims on underlying goods, services, or other assets.” The asset is created or resides on “a distributed ledger based on blockchain or similar technology.” The asset is secured by cryptography. The asset is fungible.

How do you determine the fair value of crypto assets?

Fair value determination: Accurately determining the fair value of crypto assets can be tricky. Crypto assets often trade on various exchanges, each with its own market dynamics, and some crypto assets within scope of the standard may be thinly traded or not traded in active markets.