When the FASB added Accounting for and Disclosure of Crypto Assets to its technical agenda, investors, auditors, preparers, regulators and other constituents were glad that the Board would address the complex and challenging accounting issues presented by crypto assets.  At its October 12, 2022 meeting, as you can read in this Tentative Board Decisions report, the FASB addressed perhaps the most complex issue surrounding crypto assets, measurement basis. 

Most believe that crypto assets fall into the current accounting framework for indefinite-lived intangible assets.  Many of the FASB’s constituents believe the historical cost with impairment testing approach provided in this model does not communicate the most relevant information about crypto assets.  It would appear that the FASB agrees.  The Board reached a tentative conclusion that crypto assets should be carried at fair value with gains and losses included in comprehensive income.  Many would agree that this is a much more reasonable and relevant approach for these kinds of volatile assets.

As always, your thoughts and comments are welcome!