ASC 350-60
Crypto Assets
350 Intangibles—Goodwill and Other
Source downloaded: .Record version b31e92867201. Effective date must be checked in the source.
ASC 350-60 governs the subsequent measurement, presentation, and disclosure of in-scope crypto assets (e.g., bitcoin-type fungible tokens). The core rule is that such assets are measured at fair value on the balance sheet with remeasurement gains and losses recognized in net income (350-60-35-1), replacing the old indefinite-lived intangible impairment-only model. Initial measurement, recognition, and derecognition remain governed by other GAAP (350-60-05-2).
Key points (7)
- Scope is limited to holdings that meet all six criteria in 350-60-15-1: they meet the definition of an intangible asset; give no enforceable rights to or claims on underlying goods, services, or other assets; are created or reside on a blockchain or similar distributed ledger; are secured through cryptography; are fungible; and are not created or issued by the reporting entity or its related parties.
- The Subtopic applies to all entities holding crypto assets (350-60-15-2) but does not address initial measurement, recognition, or derecognition, which follow other GAAP (350-60-05-2).
- Crypto assets are measured at fair value in the statement of financial position, with remeasurement gains and losses included in net income (350-60-35-1).
- Crypto assets must be presented separately from other intangible assets on the balance sheet, and remeasurement gains and losses separately from changes in the carrying amount of other intangible assets (350-60-45-1 through 45-2); more disaggregated presentation is permitted.
- Interim and annual disclosures include, for each significant holding, the name, cost basis, fair value, and number of units held, plus aggregated cost bases and fair values of holdings that are not individually significant (350-60-50-1).
- Annual disclosures include the cost basis method used to compute gains and losses (e.g., FIFO, specific identification, average cost) and the income statement line item if gains and losses are not presented separately (350-60-50-2), plus an aggregate opening-to-closing reconciliation showing additions, dispositions, gains, and losses determined on a crypto-asset-by-crypto-asset basis (350-60-50-3).
- Crypto assets subject to contractual sale restrictions require interim and annual disclosure of their fair value, the nature and remaining duration of the restriction, and circumstances that could cause it to lapse (350-60-50-6).
For students. This is the ASU 2023-08 fix that ended the much-criticized impairment-only model for bitcoin and similar tokens; the common trap is assuming it covers all digital assets — NFTs (nonfungible), wrapped tokens or stablecoins conveying enforceable claims on underlying assets, and self-issued tokens are all outside the scope of 350-60-15-1.
crypto assetsfair value measurementfungible intangible assetsdistributed ledgerremeasurement gains and lossescost basis methodcontractual sale restrictionsrollforward reconciliation
Machine-generated study aid for ASC 350-60. Check the source paragraphs below.
350-60-00Status
Source downloaded: .Record version 985892aaa4f0. Effective date must be checked in the source.
350-60-00-1
The following table identifies the changes made to this Subtopic.
350-60-05Overview and Background
Source downloaded: .Record version c5bd87ef9426. Effective date must be checked in the source.
350-60-05-1
This Subtopic provides guidance on the subsequent measurement, presentation, and disclosure of crypto assets that are within the scope of this Subtopic.
350-60-05-2
This Subtopic does not address the initial measurement, recognition, and derecognition of crypto assets. Reporting entities shall account for the initial measurement, recognition, and derecognition of crypto assets in accordance with other generally accepted accounting principles (GAAP).
350-60-15Scope and Scope Exceptions
Source downloaded: .Record version 755335fc6791. Effective date must be checked in the source.
Overall Guidance
350-60-15-1
The guidance in this Subtopic applies to holdings of assets that meet all of the following criteria:
- aMeet the definition of intangible assets as defined in the Codification
- bDo not provide the asset holder with enforceable rights to or claims on underlying goods, services, or other assets
- cAre created or reside on a distributed ledger based on blockchain or similar technology
- dAre secured through cryptography
- eAre fungible
- fAre not created or issued by the reporting entity or its related parties.
Entities
350-60-15-2
The guidance in this Subtopic applies to all entities that hold crypto assets.
350-60-35Subsequent Measurement
Source downloaded: .Record version e2dd0b6d3f04. Effective date must be checked in the source.
350-60-35-1
An entity shall measure crypto assets at fair value in the statement of financial position. Gains and losses from the remeasurement of crypto assets shall be included in net income.
350-60-45Other Presentation Matters
Source downloaded: .Record version ad24f4f8021f. Effective date must be checked in the source.
Statement of Financial Position
350-60-45-1
Crypto assets shall be presented separately from other intangible assets in the statement of financial position. An entity is permitted to present crypto assets on a more disaggregated basis (for example, by individual crypto asset holding or intangible asset class).
Income Statement
350-60-45-2
Gains and losses from the remeasurement of crypto assets shall be included in net income and presented separately from changes in the carrying amount of other intangible assets.
Statement of Cash Flows
350-60-45-3
For guidance related to the presentation of cash receipts arising from the sale of crypto assets that are received as noncash consideration in the ordinary course of business (or as a contribution, in the case of a not-for-profit entity) and are converted nearly immediately into cash, see paragraphs 230-10-45-21A and 230-10-45-27A.
350-60-50Disclosure
Source downloaded: .Record version 0903286d0ed5. Effective date must be checked in the source.
350-60-50-1
At interim and annual reporting periods, an entity shall disclose the following for each significant (as determined by the fair value) crypto asset holding:
- aName of the crypto asset
- bCost basis
- cFair value
- dNumber of units held.
350-60-50-2
At annual reporting periods, an entity shall disclose both of the following:
- aThe method used to determine its cost basis for computing gains and losses (for example, first-in, first-out; specific identification; average cost; or other method used)
- bIf not presented separately, the line item in which gains and losses are reported in the income statement.
350-60-50-3
At annual reporting periods, an entity shall provide a reconciliation, in the aggregate, of activity from the opening to the closing balances of crypto assets, separately disclosing changes during the period attributable to the following:
- aAdditions.
- bDispositions.
- cGains included in net income for the period, determined on a crypto-asset-by-crypto-asset basis. Each crypto asset holding that has a net gain from remeasurement as included in net income for the period shall be included in the gains line.
- dLosses included in net income for the period, determined on a crypto-asset-by-crypto-asset basis. Each crypto asset holding that has a net loss from remeasurement as included in net income for the period shall be included in the losses line.
350-60-50-4
An entity shall disclose the following information about the reconciliation in paragraph 350-60-50-3:
- aA description of the nature of activities that result in additions (for example, purchases, receipts from customers, or mining activities) and dispositions (for example, sales or use as payment for services)
- bTotal amount of cumulative realized gains and cumulative realized losses from dispositions that occurred during the period.
350-60-50-5
An entity that receives crypto assets as noncash consideration in the ordinary course of business (or as a contribution, in the case of a not-for-profit entity) that are converted nearly immediately into cash need not include that activity in the disclosures required by paragraphs .
350-60-50-6
For interim and annual reporting periods, an entity shall disclose the following information for crypto assets subject to contractual sale restrictions at the balance sheet date:
- aThe fair value of the crypto assets that are subject to contractual sale restrictions
- bThe nature and remaining duration of the restriction(s)
- cCircumstances that could cause the restriction(s) to lapse.
350-60-50-7
In providing the required disclosures in paragraph 350-60-50-6, an entity with multiple crypto assets subject to contractual sale restrictions shall consider all of the following:
- aThe level of detail necessary to satisfy the required disclosures
- bHow much emphasis to place on each of the required disclosures
- cHow much aggregation or disaggregation to undertake
- dWhether users of financial statements need additional information to evaluate the quantitative information disclosed.
350-60-65Transition and Open Effective Date Information
Source downloaded: .Record version 5228162f0783. Effective date must be checked in the source.
350-60-65-1
Paragraph superseded on 07/02/2026 after the end of the transition period stated in Accounting Standards Update No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets.
Related subtopics
- 350-10 OverallIntangibles—Goodwill and Other
- 350-30 General Intangibles Other Than GoodwillIntangibles—Goodwill and Other
- 860-30 Secured Borrowing and CollateralTransfers and Servicing
- 825-10 OverallFinancial Instruments
- 818-20 Environmental CreditsEnvironmental Credits and Environmental Credit Obligations
- 210-20 OffsettingBalance Sheet