ASC 350-60 and corporate Bitcoin

What ASU 2023-08 changed

FASB Accounting Standards Update 2023-08 added Subtopic 350-60, Intangibles - Goodwill and Other - Crypto Assets. The scope is defined by six criteria, including that the asset meets the Codification definition of an intangible asset, resides on a blockchain or similar distributed ledger, is secured through cryptography, is fungible, and is not created or issued by the reporting entity or its related parties. A company should evaluate the complete scope test rather than assume every digital asset is covered.

Subsequent measurement

Crypto assets within the scope of Subtopic 350-60 are subsequently measured at fair value, with changes in fair value recognized in net income each reporting period. That is materially different from the previous cost-less-impairment model that many holders applied to indefinite-lived intangible assets.

Presentation and disclosures

The standard includes separate presentation requirements for in-scope crypto assets and their fair-value changes, plus annual and interim disclosures. For significant holdings, required information includes the asset name, cost basis, fair value, and number of units. The standard also includes disclosures about contractual sale restrictions and an annual rollforward of crypto-asset activity.

Effective date

ASU 2023-08 became effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Earlier application was permitted.

FASB work that is still in progress

FASB also has an active 2026 project on accounting for transfers of crypto assets. The Board has made tentative decisions involving the scope of Subtopic 350-60 for certain wrapped and receipt tokens and is considering derecognition guidance for transfer arrangements. Those project decisions are not final amendments to GAAP until FASB completes its standard-setting process and issues authoritative guidance.

How this relates to EmerickTech Bitcoin Treasury

EmerickTech Bitcoin Treasury produces management and treasury-control figures such as native BTC quantity, a stated BTC/USD reference or scenario price, allocation, fiat runway, stress cases, and company-selected policy exceptions. Those outputs are not a GAAP measurement, journal entry, disclosure checklist, tax calculation, or accounting conclusion. They are designed to support a recurring management review and a cleaner conversation with the company's accountant.

Primary FASB sources

• Accounting Standards Update 2023-08, including the scope, measurement, presentation, disclosure, and effective-date requirements added for crypto assets.
• FASB project: Accounting for Transfers of Crypto Assets, for the current status of the Board's 2026 work in this area.

Next step

If you need a management snapshot to take into an accounting review, generate a Control Pack. If you are an accountant evaluating a repeatable client workflow, see Bitcoin treasury for accountants.