A neutral comparison, checked 9 November 2026. It names no products or providers and makes no forecasts. Neither option is right for every company; the board decides, with its own advisers.
This page is about UK accounts. For the US, see US accounting under ASU 2023-08.
The difference in one line
FRS 105 keeps bitcoin at historical cost. FRS 102 also usually starts at cost, but allows revaluation to fair value where there is an active market. Neither has rules written specifically for cryptoassets, so both involve judgement.
Side by side
| Question | FRS 105 (micro-entities) | FRS 102 (most other small and medium companies) |
|---|---|---|
| Who can use it | Micro-entities: any two of turnover £1 million or less, balance sheet £500,000 or less, 10 employees or less (GOV.UK) | Companies not using FRS 105 or IFRS, including small companies under Section 1A |
| Measurement of bitcoin | Historical cost only; no revaluation | Usually an intangible asset under Section 18: cost model, or revaluation model only if fair value is determined by reference to an active market |
| Where revaluation gains go | Not applicable | Usually other comprehensive income and a revaluation reserve |
| Deferred tax | Not recognised | Recognised on timing differences, including on revaluation |
| Notes to the accounts | Very few; accounts prepared under the micro-entity minimum are presumed to give a true and fair view (Companies Act 2006, section 393) | More disclosures, including accounting policies, useful lives and reconciliations |
| What is filed at Companies House | A balance sheet can be enough (section 444) | Small companies can also file reduced accounts; check the current filing rules |
| What the board sees | Cost, which can differ a lot from today's value | Cost or a revalued amount, depending on the model |
Judgements in both
Both frameworks treat intangible assets as having a finite useful life, which raises questions about amortisation and residual value for bitcoin. ICAEW's helpsheet on cryptocurrencies under FRS 102 notes that if residual value is estimated to equal or exceed cost, no amortisation is recorded. Impairment needs a price source and time stamp. These are judgements to agree with the accountant and record in the accounting policy. Since 1 January 2026, amended FRS 102 includes a new Section 2A on fair value measurement.
Tax is separate
For Corporation Tax, bitcoin held as an investment usually gives chargeable gains on disposal, with section 104 pooling, whichever framework the accounts use. See section 104 pool.
Questions that decide it
- Does the company qualify as a micro-entity, and will it still if its bitcoin grows?
- Do lenders or investors want to see a current value in the accounts?
- Is the extra disclosure and deferred tax work under FRS 102 worth it?
Whichever framework applies, the treasury policy can ask for fair value alongside cost in internal reports, so directors see both. See FRS 105 and FRS 102.
Common questions
Can a micro-entity show bitcoin at market value?
Not under FRS 105, which uses historical cost. It would need to use FRS 102, and revaluation there requires an active market.
Does the framework change the tax?
Generally no. Corporation Tax on bitcoin held as an investment follows disposals and the pooling rules.
Is there a UK standard written for cryptoassets?
No. Both frameworks are applied by judgement, which is why the policy and the accountant's view matter.
Sources
Primary sources only. Each link was checked on 9 November 2026. Rules change, so confirm the current version with your adviser.
- FRCFRS 105: The Financial Reporting Standard applicable to the Micro-entities Regime
- FRCFRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland
- GOV.UKPrepare annual accounts for a private limited company: micro-entities, small and dormant companies
- legislation.gov.ukCompanies Act 2006, section 393: accounts to give a true and fair view, including the micro-entity presumption
- legislation.gov.ukCompanies Act 2006, section 444: filing obligations of companies subject to the small companies regime
- ICAEWAccounting for cryptocurrencies under FRS 102 (helpsheet)
- ICAEWCan I revalue an intangible asset under FRS 102?
- DeloitteNeed to know: Amendments to FRS 102, new Section 2A 'Fair Value Measurement'
- HMRCCRYPTO41350: Corporation Tax on chargeable gains, pooling and the same day and ten day rules
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This is general information and education only. It is not financial, investment, tax, accounting, legal or regulatory advice, and it is not a recommendation to buy, sell or hold bitcoin or any other asset. It does not take account of your circumstances or those of your company. You must obtain your own official professional advice to confirm this information is correct before acting on it.
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