Its Just Crypto

The IASB’s focused review of IAS 38 (Intangible Assets) is under way, but its September meeting worked through test cases on the definition and recognition of intangible assets — rights to access intellectual property and software-as-a-service arrangements — with no decisions reached and nothing on cryptoassets. Despite earlier reports that crypto would be folded into this review, the IASB has not started a crypto-specific project: cryptoassets remain on its list of potential projects to add only if capacity allows. The 2019 IFRS Interpretations Committee agenda decision still sets the treatment — IAS 38 for most holdings, IAS 2 where they are held for sale in the ordinary course of business. Separately, the UK Endorsement Board launched descriptive research on digital assets and liabilities on 10 September 2026.

The AICPA refreshed Accounting for and Auditing of Digital Assets with a new chapter specifically on stablecoin issuers — covering how to recognise the obligations tied to issued tokens and how to account for the reserve assets backing them. A second addition sets out auditing considerations for mining revenue arrangements, and the aid was rolled forward to reflect recently effective auditing standards.

Continuing its crypto transfers project, the FASB tentatively decided that a lender of crypto assets should keep recognising the lent asset rather than derecognise it — reclassifying it as an encumbered asset, measured at fair value adjusted for the borrower’s credit risk. For transfers other than lending, the Board will keep applying the ASC 606 control model, supplemented by crypto-specific implementation guidance. This builds on its April decision to bring wrapped and receipt tokens into Subtopic 350-60. Staff have been directed to draft a proposed ASU; as of early October it has not yet been published.

The FASB issued a proposed ASU, Cash Equivalents — Disclosure Enhancement and Evaluation of Certain Digital Assets. It leaves the definition of a cash equivalent unchanged but adds illustrative guidance on applying it to digital assets. In broad terms, a qualifying token would need an on-demand right to redeem it for a known amount of cash, held directly against the issuer, backed by segregated reserves of at least 1:1 in short-term, highly liquid assets. Separately, every entity that presents cash equivalents would have to disclose their significant components (for example Treasury bills or money market funds), whether or not it holds any digital assets. Comments are due by 19 November 2026; the effective date will be set after redeliberation, with early adoption expected to be permitted.

On 15 April the FASB unanimously agreed to expand Subtopic 350-60 to cover crypto assets that give the holder an enforceable right to receive another crypto asset — wrapped and receipt tokens — measured at fair value and presented separately from other holdings. At the same stage it completed initial deliberations on whether stablecoins can be cash equivalents and authorised staff to draft a proposed ASU. The FASB walked the IASB through both projects at their joint education session in June.

Since becoming effective for fiscal years beginning after 15 December 2024, ASU 2023-08 has required in-scope crypto intangible assets to be measured at fair value each reporting period, with changes run through net income — a major departure from the old cost-less-impairment model. Every project listed above is effectively an extension or refinement of the gap this standard left open (stablecoins, wrapped tokens, transfers) rather than a replacement for it.