FASB ASU 2023-08 FAQ: Corporate Bitcoin Accounting in 2026

What does ASU 2023-08 actually require?

In-scope crypto assets — Bitcoin included — are measured at fair value each reporting period, with changes recognized in net income. This replaces the prior indefinite-lived intangible model that recognized impairments only and never permitted write-ups.

When does it take effect?

Fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption was permitted; most calendar-year filers adopted as of January 1, 2025.

Where do fair-value changes hit the P&L?

In net income, as a separate line item from changes in fair value of other financial instruments. The presentation must be sufficient to allow a reader to isolate the crypto-asset impact.

What disclosures are required?

• Name, cost basis, fair value, and number of units held for each significant crypto asset
• A reconciliation of opening to closing balances showing additions, dispositions, and fair-value changes
• The method and significant inputs used to determine fair value
• Restrictions on the holdings, including custody arrangements where material

Does this change tax treatment?

No. ASU 2023-08 governs GAAP measurement and disclosure only. Tax treatment continues under existing IRS guidance, which treats Bitcoin as property — gains and losses are typically realized on disposition, not on fair-value remeasurement.

How does the transition entry work?

A cumulative-effect adjustment to opening retained earnings, equal to the difference between the prior carrying value (net of impairments) and the fair value at the beginning of the adoption period. Disclose the adjustment amount and the transition method.

Does this apply to private companies?

Yes. ASU 2023-08 applies to all entities that hold in-scope crypto assets, public and private. Private companies follow the same effective date unless they have elected the FASB private-company effective-date relief, which does not extend to this standard.