Measurement of qualifying crypto assets at current fair value, with period-to-period changes recognized in earnings.
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.
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.
For the clearest picture, read this entry together with FASB ASU 2023-08, Corporate Bitcoin treasury, Legacy impairment accounting, Volatility. The reverse links also lead from Corporate Bitcoin treasury, Legacy impairment accounting, FASB ASU 2023-08, Bitcoin accounting policy.
Upward and downward remeasurement reaches earnings
Applies to qualifying in-scope crypto assets
Improves balance-sheet visibility
Accounting value is not liquidity