PROJECT UPDATE

Accounting for and Disclosure of Crypto Assets (formerly known as Accounting for and Disclosure of Digital Assets)

Last updated on September 2, 2022. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.

(Sections updated on the date above are indicated with an asterisk *)

 

Objective:


The objective of this project is to improve the accounting for and disclosure of certain crypto assets.

Background:


On December 15, 2021, in response to feedback received on the Invitation to Comment, Agenda Prioritization, FASB Chair Rich Jones added a project to the FASB research agenda to explore accounting for and disclosure of a subset of exchange-traded digital assets and exchange-traded commodities.

The Board added a project to its technical agenda to improve the accounting for and disclosure of certain crypto assets.

Exposure Draft(s):

There are no exposure documents at this time.

There are no media releases or educational materials at this time.

Decisions Reached at Last Meeting (August 31, 2022):


The Board discussed the scope criteria for the project. The Board decided that crypto assets that are held by an entity must meet the following criteria to be within the project’s scope:

  1. Meet the definition of intangible asset as defined in the Codification Master Glossary
  2. Do not provide the asset holder with enforceable rights to, or claims on, underlying goods, services, or other assets
  3. Are created or reside on a distributed ledger or “blockchain”
  4. Are secured through cryptography
  5. Are fungible.
The Board also discussed the different entity types that would be within the scope of the guidance. The Board decided that all entities would be within the scope of the project and that as decisions are made, the Board will consider the applicability of those provisions to those entities.

Tentative Board Decisions Reached to Date (as of August 31, 2022):


A summary of the Board’s tentative decisions reached to date can be found here.

The Board meeting minutes, handouts, and videos are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.

The following are links to the minutes for each meeting.  To view Board meetings and handouts from the past 90 days, click here.
 
August 31, 2022* Board Meeting—Board Meeting—The Board added a project to its technical agenda to improve the accounting for and disclosure of certain digital assets. The Board decided not to add to its technical agenda a project that would address the accounting for exchange-traded commodities; however, the chair decided that this topic would remain a research agenda project.
May 11, 2022 Board Meeting—The Board added a project to its technical agenda to improve the accounting for and disclosure of certain digital assets. The Board decided not to add to its technical agenda a project that would address the accounting for exchange-traded commodities; however, the chair decided that this topic would remain a research agenda project.

The Board will consider potential measurement alternatives for crypto assets at a future Board meeting.

Nicholas Cappiello
Supervising Project Manager
ntcappiello@fasb.org

Tiffany Wyszkowski
Project Manager
twyszkowski@fasb.org

Sally Bishop
Practice Fellow
sbishop@fasb.org

Gary Sardo
Practice Fellow
gsardo@fasb.org

Cassie Mongold
Post-Doctoral Fellow
cmongold@fasb.org

Emily Frederick
Postgraduate Technical Assistant
efrederick@fasb.org

Lindsey Hoyer
Postgraduate Technical Assistant
lhoyer@fasb.org

The staff has prepared this summary for information purposes only. Any Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.
 

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