FASB (Bitcoin Accounting)
The U.S. accounting standard requiring Bitcoin to be measured at fair value, with gains and losses recognized in earnings.
Definition
The FASB rules on Bitcoin are set out in update ASU 2023-08, which created the accounting subtopic ASC 350-60 (Crypto Assets). It is mandatory for fiscal years beginning after December 15, 2024, with early adoption permitted. Its effect is decisive for corporate Bitcoin accounting: it requires cryptoassets to be measured at fair value at each reporting date, recognizing both unrealized gains and unrealized losses in the income statement.
Before this standard, Bitcoin was treated as an indefinite-lived intangible asset under a cost-less-impairment model: companies could only record losses (impairment) when the price fell, but never recoveries until sale, which artificially penalized balance sheets. That asymmetric treatment was one of the main accounting deterrents keeping CFOs from putting Bitcoin on the balance sheet. By moving to fair value, the FASB removed that distortion and, in practice, unlocked corporate adoption of the Bitcoin standard in the United States.
In Context
Under ASC 350-60, a company holding Bitcoin reflects the asset's appreciation in its earnings — not just the declines, as was the case before 2025.
Related Terms
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