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Update: Digital assets practice aid addresses new FASB standards

By Bryan Strickland

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The AICPA updated its digital assets practice aid to assist practitioners with newly effective FASB standards.

The practice aid, Accounting for and Auditing of Digital Assets, includes a new definition for digital assets, new and amended accounting questions, and the introduction of new terms. The updates are in response to FASB Accounting Standards Update (ASU) No. 2023-08, Intangibles — Goodwill and Other — Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets. The ASU took effect Dec. 15, 2024.

“Digital assets is still a rapidly changing and growing area of practice and also a great area of opportunity for accounting professionals,” Di Krupica, CPA, CGMA, senior manager–Emerging Assurance Technologies for AICPA & CIMA, said in a news release. “The January 2025 updates to the digital assets practice aid will help professionals stay informed of current, timely updates from the FASB, which we consider of utmost importance. The new content provides key answers to new accounting questions stemming from the professional community, and future updates will continue to push out the most relevant information as it’s available.”

The practice aid provides guidance for financial statement preparers and auditors with a fundamental knowledge of blockchain technology. The update introduces new terms, such as “crypto intangible assets,” that also can be found in the updated Blockchain Universal Glossary.

The practice aid was updated last year and featured auditing content in a Q&A format. New accounting Q&As in this edition include:

  • Are “wrapped tokens” in the scope of FASB ASC Subtopic 350-60?
  • Are nonfungible tokens (NFTs) in the scope of FASB ASC Subtopic 350-60?
  • Are transaction costs (for example, commissions or gas fees) to acquire crypto intangible assets included in the initial measurement of the acquired asset?

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.