Accounting Spotlight — The Metaverse: Accounting considerations related to nonfungible tokens

Published on: 21 Jun 2022

This Accounting Spotlight discusses accounting implications of the evolving metaverse, an immersive digital environment that allows users to interact with their surroundings and one another in a shared space. Specifically, it addresses an entity’s accounting for transactions that involve nonfungible tokens (NFTs), units of data on a digital ledger (i.e., a blockchain) that represent rights associated with virtual or real-world assets and services. The accounting considerations highlighted, which include revenue recognition, developments costs, and the application of ASC 350, will vary depending on whether the entity is an NFT (1) issuer or developer or (2) investor or purchaser.


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