01Definition
Measurement of qualifying crypto assets at current fair value, with period-to-period changes recognized in earnings.
02What changed
FASB ASU 2023-08 replaced the former cost-less-impairment treatment for qualifying crypto assets with recurring fair-value measurement. Both increases and decreases now flow through earnings, while disclosures identify significant holdings and activity.
03What did not change
Fair value does not create cash flow, remove custody risk or eliminate price volatility. It changes financial reporting and comparability, not the economics of the asset or the company’s ability to service obligations.
⌖Reference points
01
Upward and downward remeasurement reaches earnings
02
Applies to qualifying in-scope crypto assets
03
Improves balance-sheet visibility
04
Accounting value is not liquidity