# Crypto fair value accounting under ASU 2023-08

Canonical: https://finbryn.com/us/services/accounting-services/crypto-fair-value-accounting-asu-2023-08

Finbryn provides crypto fair value accounting under ASU 2023-08 for operating businesses that hold crypto on the balance sheet: a crypto subledger by lot, monthly fair value remeasurement entries, disclosure support and a tie-out to the ledger. We work from read-only data and never hold keys or custody assets.

For years, a company that held bitcoin or ether booked it as an indefinite-lived intangible asset, wrote it down when the price fell, and could never write it back up. A treasury that had doubled in value showed up at its original cost. ASU 2023-08 changed that. For in-scope crypto assets, the company now remeasures to fair value at each reporting date and runs the change through net income. The standard is effective for fiscal years beginning after December 15, 2024, applies to private companies as well as public ones, and is adopted with a cumulative-effect adjustment to opening retained earnings.

That sounds like one journal entry a month. In practice it needs a subledger. Fair value needs a documented price source and a documented cut-off time. Disclosures ask for the name, cost basis, fair value and units of significant holdings, plus an annual rollforward of activity. Tax basis tracking per lot still matters, because the book answer and the tax answer now diverge. That is where a month-end close either holds or falls apart.

We build the subledger from read-only exchange data and public wallet addresses, post the remeasurement and tie the result to the general ledger. We never receive private keys, seed phrases or signing access, and we do not move assets. The company adopts the accounting policy and the price source, its auditor or reviewing accountant concurs, and the signing preparer decides tax treatment. Individual Form 8949 cleanup is outside this service.

What you get: Crypto subledger with units, cost and fair value by asset and by lot; Monthly fair value remeasurement entries with price source and cut-off time documented; Scope memo draft listing which holdings fall under ASU 2023-08; Disclosure support: significant holdings, restrictions and the activity rollforward; Tie-out of wallet and exchange balances to the general ledger; Opening retained earnings adjustment support for the adoption year

Software we work in: QuickBooks Online, Xero, NetSuite, Excel, Google Sheets

## What is included

The deliverable is a crypto subledger that keeps each asset by wallet or account and by acquisition lot. A row records units, date acquired, cost, the fair value at each month end, the price source and the unrealized gain or loss. The subledger feeds a monthly journal entry that moves the carrying amount to fair value and books the change to net income. Alongside it is a reconciliation of on-chain or exchange balances to the general ledger, so the unit count agrees as well as the dollars.

For the adoption year we prepare the cumulative-effect adjustment support: the carrying amount at the start of the year under the old model, the fair value at that date and the difference to opening retained earnings. For each annual close we prepare the disclosure support the standard asks for, including the rollforward and a list of contractual sale restrictions and holdings that are significant. A scope memo draft documents which holdings meet the criteria and which, like most NFTs and stablecoins, need separate analysis.

## How the process works

First, a scope pass. ASU 2023-08 applies to assets that meet the definition of an intangible asset, give the holder no enforceable rights to goods, services or other assets, sit on a distributed ledger secured by cryptography, are fungible, and were not created or issued by the holder or its related parties. We list each holding and the criteria it meets, and the company and its auditor decide the scope.

Second, data access. We ask for read-only API keys from exchanges, statement exports and public wallet addresses. Where a wallet is controlled by a custodian or a multi-signature setup, we need only the address and the transaction history. Third, we load the history, assign lots, record price sources and reconcile units to the balances. Each month end we pull the price from the source the company has chosen, measured at a stated time, post the remeasurement and reconcile the result before the close is final. Staking rewards, token receipts for services and payments made in crypto are each flagged to the policy the company has adopted.

## Who this is for

The fit is an operating company whose crypto is incidental to the business or part of the treasury: a SaaS company that accepts crypto payments, a services firm that holds tokens received as payment, a startup with a token treasury, a protocol foundation with fiat operations alongside its holdings, or a family-owned business that bought bitcoin as a reserve. The common feature is that crypto sits on the balance sheet and someone, usually an auditor or a lender, now asks for fair value.

It is not for an individual who wants a trading history cleaned up for a Form 8949, and it is not a custody or trading service. Tokens that the company itself issued fall outside the standard's scope and need their own analysis.

## Common problems we fix

The first is a ledger that still carries crypto at cost less impairment under the old model, with no plan for adoption. The second is price sources chosen on the day: a different exchange each month, with no documented cut-off. The third is one lump crypto account with no lot detail, so nobody can say what was bought when or at what cost, and tax basis is a guess. The fourth is wallet balances that do not agree to the ledger because transfers between the company's own wallets were booked as sales or purchases. The fifth is staking and similar rewards recorded inconsistently, some as revenue, some as a reduction of cost, some not at all.

## Software and integrations

The general ledger stays in QuickBooks Online, Xero or NetSuite. The subledger can live in a controlled Excel or Google Sheets workbook, or in a crypto accounting tool the company already has; we reconcile to the general ledger in either case and do not rely on a tool's own totals. Data arrives as read-only exchange API connections, statement exports and public blockchain addresses. We do not use tools that need signing authority, and we do not trade, transfer or custody anything.

## What it costs

Scope depends on the number of wallets and exchange accounts, the number of transactions per month and whether the adoption-year entry and prior periods have to be rebuilt. The monthly remeasurement for a small treasury can fit inside monthly reporting scope. Heavy transaction volume or multi-year history is quoted separately in writing before work starts. Current tiers are published on the [pricing page](/us/pricing).

## How we measure quality

Every month end, the subledger is checked three ways before it is delivered. Units per wallet agree to the exchange or blockchain balance. The carrying amount agrees to the general ledger. Each price used is traceable to the documented source and time. We also keep a written note for any transfer, reward or payment that required a judgment, so the auditor can follow it without a call. The standard we hold the file to is that a reviewer can pick any holding and trace it from the wallet to the lot to the fair value to the journal entry.

## Timeline and onboarding

Setting up the subledger usually takes one to three weeks depending on the number of accounts and how much history has to be loaded. A mid-year adoption or a multi-year rebuild takes longer and is scoped up front. If your books are not reconciled, we begin with a [catch-up](/services/bookkeeping/catch-up-cleanup-bookkeeping) and, where crypto sits in more than one legal entity, set up [multi-entity accounting](/services/accounting-services/multi-entity-accounting) first. For the wider picture on crypto businesses, see our [crypto and Web3 industry page](/industries/crypto-web3).

## The process

1. **Scope pass**: We list each holding against the ASU 2023-08 criteria and flag assets that need separate analysis.

2. **Read-only access**: Exchange API keys with read-only permission, statement exports and public wallet addresses. No keys or signing access.

3. **Lot build**: Transaction history is loaded, lots are assigned and units are reconciled to wallet and exchange balances.

4. **Price policy**: A fair value source and measurement time are documented for the company to adopt.

5. **Monthly remeasurement**: Carrying amounts move to fair value, the change is booked to net income and the result ties to the ledger.

6. **Disclosure support**: At year end we prepare the holdings schedule and activity rollforward for the financial statements.

## Common problems we fix

| The problem | How we fix it |
| --- | --- |
| Crypto still carried at cost less impairment | We prepare the adoption-year adjustment and move the subledger to fair value. |
| Price source changes every month | We document one source and measurement time for the company to adopt, and apply it consistently. |
| One lump crypto account with no lots | We rebuild lots from transaction history so cost and tax basis can be traced. |
| Internal wallet transfers booked as sales | We match transfers between the company's own wallets and remove them from gain and loss. |
| Staking rewards recorded three different ways | We flag each to the policy the company has adopted and record them consistently. |

Pricing: Scope depends on wallets, exchange accounts, monthly transaction volume and any rebuild needed for the adoption year. A small treasury can fit inside monthly reporting scope; larger or multi-year work is quoted separately. See [/us/pricing](/us/pricing). ([See pricing](https://finbryn.com/us/pricing))

## Glossary

- **ASU 2023-08**: The FASB update that requires in-scope crypto assets to be measured at fair value, with changes recognized in net income.

- **Fair value**: The price that would be received to sell an asset in an orderly transaction between market participants at the measurement date.

- **Lot**: A specific purchase or receipt of units, tracked with its date and cost so basis can be traced.

- **Read-only access**: Access that lets a person see balances and history but not move assets or sign transactions.

- **Cumulative-effect adjustment**: A one-time adjustment to opening retained earnings for the difference between the old and new measurement at adoption.

## Frequently asked questions: Crypto fair value accounting under ASU 2023-08

**Q: When did ASU 2023-08 take effect?**

A: For all entities, for fiscal years beginning after December 15, 2024, including interim periods. Early adoption was allowed. Adoption is through a cumulative-effect adjustment to opening retained earnings. Checked against the FASB update on 2026-10-09.

**Q: Does ASU 2023-08 cover NFTs and stablecoins?**

A: Generally not without further analysis. The standard covers fungible assets that give the holder no enforceable rights to goods, services or other assets, and many NFTs and stablecoins fail one of those tests. The company and its auditor decide scope.

**Q: Do you ever take custody of crypto or hold keys?**

A: No. We use read-only API keys, statement exports and public wallet addresses. We never receive private keys or seed phrases, and we do not move, trade or custody assets.

**Q: Can you clean up my personal Form 8949?**

A: No. This service is for operating businesses with crypto on the balance sheet. We do not clean up individual transaction histories for Form 8949.

**Q: Who decides the fair value price source?**

A: The company adopts the policy. We draft the source and measurement time for it to approve and apply the same one every month, with the date recorded in the workbook.

**Q: How does this connect to tax?**

A: Lot-level cost is kept for the signing preparer, who decides tax treatment. Book fair value and tax basis can differ, so we keep both views in the subledger. See the [crypto accounting guide](/guides/crypto-accounting-guide).

**Q: Do you ever hold keys or custody crypto?**

A: No. We use read-only exchange API keys, exported statements and public wallet addresses. We never receive private keys, seed phrases or signing access.

**Q: Which crypto assets fall under ASU 2023-08?**

A: Fungible assets on a distributed ledger secured by cryptography that give the holder no enforceable rights to goods or services and were not created by the holder or its related parties. Stablecoins and NFTs usually need separate analysis, and your auditor concurs.

**Q: Do you clean up individual Form 8949 reporting?**

A: No. This service is for operating businesses holding crypto on the balance sheet. Individual transaction-by-transaction tax cleanup is outside the scope.

**Q: Who sets the fair value price source?**

A: The company adopts the policy. We draft it from the principal market guidance in ASC 820 and document the source used each month.

Related services:
- [Multi-entity accounting](https://finbryn.com/us/services/accounting-services/multi-entity-accounting)
- [Month-end close](https://finbryn.com/us/services/month-end-close-reporting/month-end-close)
- [Financial statement preparation](https://finbryn.com/us/services/accounting-services/financial-statement-preparation)

Industries:
- [Crypto and web3](https://finbryn.com/us/industries/crypto-web3)
- [Fintech and payments companies](https://finbryn.com/us/industries/fintech-payments)
- [Startups and VC-backed companies](https://finbryn.com/us/industries/startups-vc-backed)

Related guides:
- [Crypto and Digital Asset Accounting for US Companies](https://finbryn.com/us/guides/crypto-accounting-guide)

## Sources

1. [FASB Accounting Standards Update 2023-08, Intangibles: Goodwill and Other: Crypto Assets (Subtopic 350-60)](https://storage.fasb.org/ASU%202023-08.pdf) (2023-12-13)
2. [FASB Accounting Standards Codification Topic 820, Fair Value Measurement](https://asc.fasb.org/820) (2011-05-12)
3. [IRS, Digital assets](https://www.irs.gov/filing/digital-assets) (2026-10-09)

Reviewed October 2026

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## Contact
- Phone: +1 (312) 313-7376
- Email: hello@finbryn.com
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