FASB Begins Deliberating Project on Digital Assets
Oct 07, 2022
At its August 31, 2022 meeting, the FASB began deliberating its project on the accounting for and disclosure of digital assets. The accounting for crypto assets, including potential measurement alternatives for such assets, will be discussed at a future Board meeting.
Specifically, the Board tentatively decided that a digital asset held by an entity that meets all the following criteria would be within the scope of the project:
- it meets the U.S. GAAP definition of an intangible asset.
- the holder is not provided with enforceable rights to, or claims on, goods, services, or other assets.
- the asset resides on a blockchain or other distributed ledger.
- it is secured by cryptography.
- it is fungible.
The Board also tentatively decided that the scope of the project would apply to all entities. However, the Board acknowledged that it may need to address industry-specific issues in the future. Given its decision to limit the scope of the project to certain digital assets, the Board decided to change the name of the project to the “Accounting for and Disclosure of Crypto Assets.”
Review the Deloitte Heads Up for further details.
