Last checked 31 October 2026. This page summarises ASU 2023-08 from the FASB text. It does not cover every situation; your auditor and accountant decide how it applies to your company. If anything here conflicts with the linked source, the source wins.
In the United States, companies that report under US GAAP account for bitcoin under Subtopic 350-60, added to the Codification by FASB Accounting Standards Update 2023-08. It replaced the old approach, in which bitcoin was held as an indefinite-lived intangible asset at cost less impairment, so prices could only ever be written down, never back up. Under the new rules, in-scope holdings are measured at fair value, and changes in fair value go through net income. This is the US counterpart to our page on UK company accounting under FRS 105.
Source: FASB: ASU 2023-08, Intangibles: Goodwill and Other, Crypto Assets (Subtopic 350-60).
The short version
- Measure in-scope crypto assets at fair value at each reporting date (350-60-35-1).
- Put gains and losses from remeasurement in net income (350-60-35-1 and 45-2).
- Show crypto assets separately from other intangible assets on the balance sheet (350-60-45-1).
- Give specific disclosures, including a yearly reconciliation of opening to closing balances (350-60-50).
- Effective for fiscal years beginning after 15 December 2024, so a calendar year company applies it from its 2025 year (350-60-65-1).
Source: FASB: ASU 2023-08, Intangibles: Goodwill and Other, Crypto Assets (Subtopic 350-60).
Scope: which assets it covers
Paragraph 350-60-15-1 says the Subtopic applies to assets that meet all six of these criteria:
| Criterion | What it means in plain English |
|---|---|
| Meets the definition of an intangible asset | Not cash, not a financial asset, not a physical asset. |
| Gives no enforceable rights to underlying goods, services or other assets | Nobody owes the holder anything. Bitcoin itself meets this; a token backed by a claim on something else would not. |
| Created or resides on a distributed ledger based on blockchain or similar technology | Recorded on a block chain. |
| Secured through cryptography | Ownership is controlled with private keys and signatures. |
| Fungible | Each unit is interchangeable with any other. |
| "Not created or issued by the reporting entity or its related parties" | A company cannot apply it to tokens it issued itself. |
Source: FASB: ASU 2023-08, Intangibles: Goodwill and Other, Crypto Assets (Subtopic 350-60).
Bitcoin held directly by a company is the textbook example. Shares in a listed fund or note that tracks bitcoin are a different asset: they are securities, and other parts of US GAAP apply to them. Your auditor will confirm which rules apply to what you actually hold.
Measurement: fair value
Holdings are measured at fair value in the statement of financial position, with gains and losses from remeasurement included in net income (350-60-35-1). Fair value means the Topic 820 definition: the price that would be received to sell the asset in an orderly transaction between market participants, usually in the principal market for the asset. In practice a company documents which market it treats as principal, which data source and time stamp it uses for the reporting date, and keeps that consistent.
The standard does not give specific guidance on transaction costs to buy bitcoin; the FASB discussed the point and left it to existing practice (Basis for Conclusions, BC36). This is one of the questions to settle with your auditor before the first year end.
Source: FASB: ASU 2023-08, Intangibles: Goodwill and Other, Crypto Assets (Subtopic 350-60).
Presentation
| Statement | What ASU 2023-08 requires |
|---|---|
| Balance sheet | Crypto assets shown separately from other intangible assets (350-60-45-1). More detail, for example by holding, is permitted. |
| Income statement | Remeasurement gains and losses in net income, separately from changes in the carrying amount of other intangible assets (350-60-45-2). |
| Cash flow statement | Cash from selling crypto received as noncash consideration in the ordinary course of business, and converted nearly immediately into cash, is an operating cash flow (350-60-45-3, pointing to 230-10-45-21A and 45-27A). |
Source: FASB: ASU 2023-08, Intangibles: Goodwill and Other, Crypto Assets (Subtopic 350-60).
Disclosures
- Each significant holding, at interim and annual dates: name, cost basis, fair value and number of units held, plus aggregated figures for holdings that are not individually significant (350-60-50-1).
- Annually: the cost basis method used to compute gains and losses (for example first in, first out, specific identification or average cost), and the income statement line that includes the gains and losses if they are not shown separately (350-60-50-2).
- Annual reconciliation of opening to closing balances, showing additions, dispositions, gains and losses separately (350-60-50-3), with a description of the activities behind additions and dispositions and the cumulative realised gains and losses on disposals in the period (350-60-50-4).
- Sale restrictions: fair value of any holdings under contractual sale restrictions, the nature and remaining duration of the restriction and what could make it lapse (350-60-50-6).
Source: FASB: ASU 2023-08, Intangibles: Goodwill and Other, Crypto Assets (Subtopic 350-60).
Effective date and transition
The Subtopic is effective for all entities for fiscal years beginning after 15 December 2024, including interim periods. Early adoption was permitted. On adoption, the company records the cumulative effect as an adjustment to opening retained earnings: the difference between the carrying amount at the end of the prior year (cost less impairment under the old model) and fair value at the start of the year of adoption (350-60-65-1).
Source: FASB: ASU 2023-08, Intangibles: Goodwill and Other, Crypto Assets (Subtopic 350-60).
Records that make year end easier
- A lot by lot record of every acquisition and disposal: date, units, cost in dollars and the transaction ID.
- The fair value source, the principal market reasoning and the price time stamp used at each reporting date.
- Evidence that the company controls the holding at the balance sheet date. Our page on audit evidence covers how to show this without moving funds.
- The reconciliation in the format of 350-60-50-3, built up during the year rather than at the end.
Tax is separate
Fair value accounting does not change federal tax rules. For tax, the IRS treats virtual currency as property, so gains and losses generally arise when it is sold or exchanged, not when its price moves. The difference between book and tax values is a matter for your tax adviser. Our page on company bitcoin tax in the US has the detail.
Source: IRS: Notice 2014-21: virtual currency is treated as property for federal tax purposes, IRS: Digital assets.
A note on SAB 121
SEC Staff Accounting Bulletin 121 dealt with entities that safeguard crypto assets for others, not with a company holding its own bitcoin. The SEC staff rescinded it with Staff Accounting Bulletin 122 in January 2025.
Source: SEC: Staff Accounting Bulletin No. 121 (31 March 2022), SEC: Staff Accounting Bulletin No. 122.
Read next
- UK company bitcoin accounting under FRS 102 and FRS 105, the UK counterpart.
- Accountant's corner, rules side by side and exports.
- Audit evidence for company bitcoin, what auditors ask for.
Sources
Primary sources only. Each link was checked on 31 October 2026. Rules change, so confirm the current version with your adviser.
- FASBASU 2023-08, Intangibles: Goodwill and Other, Crypto Assets (Subtopic 350-60)
- IRSNotice 2014-21: virtual currency is treated as property for federal tax purposes
- IRSDigital assets
- SECStaff Accounting Bulletin No. 121 (31 March 2022)
- SECStaff Accounting Bulletin No. 122
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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.
Rules change. This information is correct to our understanding at the last-reviewed date, but it may be incomplete or out of date, and official sources take precedence. Bitcoin is volatile. A company that buys it could lose some or all of the money it puts in.
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