This paper explores the accounting implications of recent investment in and use of digital assets, including, but not limited to, cryptocurrencies. The paper aims to identify and illustrate how digital assets are accounted for and reported under US Generally Accepted Accounting Principles (US GAAP), as upheld by the Financial Accounting Standards Board (FASB), including comparisons with the International Financial Reporting Standards (IFRS), as upheld by the International Accounting Standards Board.
As use of digital assets becomes more pervasive, alternative approaches to accounting for digital assets should be introduced under US GAAP and IFRS to create more useful financial reporting information. At present, many market participants believe the existing accounting frameworks do not provide decision-useful information to users of financial statements.
The US Securities and Exchange Commission has received a number of questions relating to digital asset-related transactions or business models. The topics covered include: (1) when digital assets represent an asset or liability of the registrant; (2) determining the cost basis for digital assets; and (3) revenue recognition considerations. The FASB issued a consultation in 2021 to invite stakeholder feedback about the future standard-setting agenda of the FASB, and the vast majority of respondents identified digital assets as a top priority. Out of 522 responses received by the FASB, 445 responses from a variety of stakeholders focused solely on accounting for digital assets. Those respondents included academics, holders of digital assets, individuals, investors and other preparers,
practitioners and users of financial statements.
In this paper, it is proposed that the framework for accounting for digital assets should allow for such assets to be accounted for at fair value
Documents (1) for Accounting for Digital Assets: Key Considerations
Latest
Paper on Proposal 6 on Margin Transparency
On November 16, ISDA published a document that looked at proposal 6 in the final Basel Committee on Banking Supervision (BCBS), Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO) report on margin transparency. Proposal...
Tender Issued for DC Administrator Role
ISDA and the Credit Derivatives Governance Committee have issued an invitation to tender for an independent regulated entity to serve as the administrator for the Credit Derivatives Determinations Committees (DCs), which includes assuming the role of DC secretary. The DC...
ISDA SIMM: The Standard for IM Calculations
The ISDA Standard Initial Margin Model (ISDA SIMM) plays an important role in ensuring margin calculations are consistent, transparent and aligned with global best practices and regulatory requirements. Since its launch in 2016, the model has been rigorously tested, regularly...
ISDA In Review – October 2025
A compendium of links to new documents, research papers, press releases and comment letters published by ISDA in October 2025.
