This KPMG report provides a comprehensive guide to the accounting treatment of crypto intangible assets under U.S. GAAP, focusing on entities that are not broker-dealers or investment companies.
Key Points:
- Definition & Scope:
- Crypto intangible assets fall under digital assets but are distinct from cash, financial instruments, or inventory.
- Subtopic 350-60 classifies them as indefinite-lived intangible assets, requiring impairment testing but no amortization.
- Accounting Treatment:
- Acquired crypto intangible assets are measured at cost.
- Fair value changes impact financial statements for assets within Subtopic 350-60.
- Derecognition follows standard intangible asset rules.
- Financial Reporting & Disclosure:
- Entities must follow new fair value-based measurement requirements.
- Disclosures must address valuation, impairment, and risks.