At its August 31, 2022, meeting, the Board tentatively decided that a crypto asset would be within the scope of this project if it is an intangible asset that (1) is secured by cryptography residing on a distributed ledger, (2) is fungible, and (3) does not provide the holder with an enforceable right to, or claims on, goods, services, other assets. For more information about the project’s scope, see Deloitte’s September 8, 2022, Heads Up.
At its October 12, 2022, meeting, the Board tentatively decided that all entities would be required to initially measure crypto assets at fair value in accordance with ASC 820, with subsequent changes in fair value being recognized in comprehensive income. For more information about the decision to require fair value measurement, see Deloitte’s October 18, 2022, Heads Up. For titles of FASB Accounting Standards Codification (ASC) references, see Deloitte’s “Titles of Topics and Subtopics in the FASB Accounting Standards Codification.”
The FASB did not expand on what would be considered “nearly immediately” at the Board meeting or in its summary of tentative Board decisions.
IFRS 9, Financial Instruments.
The FASB has not yet completed its standard-setting due process in the project, which includes reaching decisions on other aspects of the guidance. In addition, once it reaches decisions on those matters, the Board would still need to expose for public comment a proposed ASU on the project before finalizing any requirements. Accordingly, an entity that is not considered an investment company or a broker-dealer should continue to measure crypto assets at historical cost less impairment.
IFRS 7, Financial Instruments: Disclosures.
SEC Staff Accounting Bulletin Topic 5.FF, “Miscellaneous Accounting; Accounting for Obligations to Safeguard Crypto-Assets an Entity Holds for Its Platform Users.”