1.8 Digital Assets
Unlike U.S. GAAP, IFRS Accounting Standards do not include
specialized guidance on the accounting for crypto assets. The IFRS Interpretations
Committee has issued an agenda decision2 on how to apply existing IFRS Accounting Standards to such assets.
The table below summarizes key differences between U.S. GAAP and IFRS Accounting
Standards related to crypto assets. Note that the table does not apply to crypto
assets that embody contractual rights that meet the definition of a financial
instrument.
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Topic
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IFRS Accounting Standards (IAS 2, IAS 38)
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U.S. GAAP (ASC 350)
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|---|---|---|
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Accounting model
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Holdings of crypto assets that are held for sale in the
ordinary course of business are accounted for as inventories
under IAS 2 and measured at the lower of cost and net
realizable value. A broker-trader may elect to measure its
crypto asset inventories at fair value less costs to
sell.
Holdings of crypto assets that are not held for sale in the
ordinary course of business are accounted for as intangible
assets. Under IAS 38, indefinite-lived intangible assets are
accounted for at cost less impairment unless (1) their fair
value can be measured reliably in an active market and (2)
the entity elects to apply a revaluation model under which
revaluation changes are recognized directly in equity.
|
Holdings of crypto assets within the scope
of ASC 350-60 are accounted for at fair value, with changes
in fair value included in net income in each reporting
period.
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