Deciphr Academy
Track 6 · Module 29 · Lesson 7 of 7 · 9 min read

How would a company record crypto purchases, a sale and a month-end remeasurement?

Short answer

In our made-up case, Brindlecove records two TSRN purchases at cost, a FIFO sale with a $16,000 gain, and a $1,600 month-end remeasurement gain under ASU 2023-08.1,2 Under IFRS's cost model, the $1,600 rise would not be recorded, and a later fall would be an impairment that can only be reversed up to cost.3,4

Solid: US GAAP, fair valueDashed: IFRS cost model$25,600$24,000$20,000 in both$27,200$24,000: cost cap31 March30 April31 May
Fig. 7. The same 8,000 TSRN from March to May, carried at fair value under US GAAP and under IFRS's cost model.

Step 1: is TSRN in scope?

In lesson 3, Maya checked TSRN against ASU 2023-08's six tests, and it passed all six. So Brindlecove measures it at fair value, with changes in net income.5,1 Every name and number in this lesson is made up, and the arithmetic is ours.

Step 2: the purchases

Bought crypto starts at cost.6,7 An asset goes up and cash goes down, so each purchase is a debit to crypto assets and a credit to cash.8

Date Debit Credit
2 March, lot A: 10,000 × $2.006 Crypto assets $20,000 Cash $20,000
9 March, lot B: 10,000 × $3.006 Crypto assets $30,000 Cash $30,000

Step 3: the sale

Brindlecove uses FIFO, so the 12,000 TSRN sold on 20 March are matched with all of lot A and 2,000 from lot B. Their cost is $20,000 + $6,000 = $26,000.2 The gain is the price received minus the carrying amount: $42,000 − $26,000 = $16,000.7

20 March Debit Credit
Cash received7 $42,000
Crypto assets, FIFO cost of the units sold2 $26,000
Gain on crypto assets7 $16,000

Debits are $42,000 and credits are $26,000 + $16,000 = $42,000, so the entry balances.9 Because nothing was remeasured between the purchases and the sale, the carrying amount equals the original cost. So the $16,000 is also the realised gain shown in the yearly disclosure.10

Step 4: the month-end remeasurement

At 31 March, 8,000 TSRN are left, carried at $24,000. The last trade before midnight on TSRN's principal market is $3.20, so fair value is 8,000 × $3.20 = $25,600.11,12 Maya records the $1,600 difference in net income.1

31 March Debit Credit
Crypto assets, up to fair value1 $1,600
Gain on remeasurement of crypto assets1 $1,600

Step 5: what March shows

  • Balance sheet. Crypto assets of $25,600, shown apart from other intangible assets.1
  • Net income. Gains on TSRN of $16,000 + $1,600 = $17,600.1
  • Interim disclosure, if TSRN is a significant holding. Name TSRN; cost basis $24,000; fair value $25,600; 8,000 units.1

A check on the arithmetic: Brindlecove spent $50,000, received $42,000 and holds TSRN worth $25,600. That is $17,600 better off, matching net income.1 Had Maya used average cost, the sale gain would be $12,000 and the remeasurement gain $5,600, still $17,600 in total. In our example, the cost method changes the split between the two gains, not the month's total.10,1

Step 6: the same holding under IFRS

Now suppose Brindlecove reported under IFRS, with IAS 38's cost model and FIFO.3,13 The purchases and the sale look the same: cost in, and a $16,000 gain in profit or loss.3 The difference starts at month-end. Suppose, too, that two more months go by:

  • 30 April. TSRN falls to $2.50. Suppose Maya works out a recoverable amount of $20,000 for the 8,000 TSRN.4
  • 31 May. TSRN rises to $3.40, which is $27,200 for 8,000 TSRN. Suppose the reasons for April's impairment have gone.4
Date US GAAP carrying amount US GAAP: in net income IFRS cost model carrying amount IFRS: in profit or loss
31 March1,3 $25,600 +$1,600 gain $24,000 Nothing; a rise above cost is not recorded
30 April1,4 $20,000 −$5,600 loss $20,000 −$4,000 impairment loss
31 May1,4 $27,200 +$7,200 gain $24,000 +$4,000 reversal, capped at cost

In April, the IFRS carrying amount of $24,000 is above the recoverable amount of $20,000, so the holding is impaired by $4,000.4 In May, IFRS allows the reversal only up to what the carrying amount would have been with no impairment. For this unamortised crypto, that is its $24,000 cost, not $27,200.4,13 Under US GAAP, every month's change goes into net income.1

If TSRN had an active market and Brindlecove chose IAS 38's revaluation model instead, IAS 38 would put the rise in other comprehensive income, because it reverses no earlier fall; KPMG's summary also shows rises above cost going there. The March rise of $1,600 above cost would then be in OCI, not profit or loss.14,13,15

Our viewBefore you compare two crypto companies' profits, check which rulebook, which model and which cost method each one uses. The same trades can tell very different stories.
Sources
  1. Accounting Standards Update No. 2023-08: the new Subtopic 350-60 (amendments to the FASB Accounting Standards Codification). Financial Accounting Standards Board (FASB). Read from the FASB's own file store, December 2023.
  2. Publication 538, Accounting Periods and Methods (inventories: identifying cost). US Internal Revenue Service (IRS), January 2022 revision.
  3. IAS 38 Intangible Assets (standard summary). IFRS Foundation (read 24 October 2026).
  4. IAS 36 Impairment of Assets (standard summary). IFRS Foundation (read 24 October 2026).
  5. Accounting Standards Update No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets, Summary. Financial Accounting Standards Board (FASB). Read from the FASB's own file store, because fasb.org refused our automated download, December 2023.
  6. Technical Line No. 2022-07: Accounting for digital assets, including crypto assets. EY (Ernst & Young LLP), AccountingLink, updated 28 March 2025.
  7. Crypto assets guide (chapters 2 and 3: holding crypto assets, crypto transactions). Pages 2-2 to 2-11 cover crypto outside ASC 350-60; section 2.4 (pages 2-12 to 2-14) applies the same guidance to crypto in its scope. PwC US National Office (Viewpoint), partially updated March 2025.
  8. Principles and concepts of accounting (FA2 technical article). ACCA (Association of Chartered Certified Accountants), student resources.
  9. Publication 583, Starting a Business and Keeping Records. US Internal Revenue Service (IRS), December 2024 revision.
  10. Heads Up: Frequently Asked Questions About Implementation of the FASB's New Crypto Assets Standard. Deloitte (DART), 2 April 2024, last updated 21 July 2025.
  11. Crypto assets guide (chapters 4 and 5: fair value, presentation and disclosure). PwC US National Office (Viewpoint), partially updated March 2025.
  12. Technical Line No. 2022-07: Accounting for digital assets, including crypto assets (ownership, fair value and staking sections). EY (Ernst & Young LLP), AccountingLink, updated 28 March 2025.
  13. Cryptoasset holdings: your questions answered. KPMG Global Corporate Reporting Institute (IFRS), 4 June 2026.
  14. NZ IAS 38 Intangible Assets, paragraphs 85–86 (New Zealand's identical version of IAS 38, used because the full IAS 38 text on ifrs.org needs a login). External Reporting Board (XRB), New Zealand Accounting Standards Board, incorporates amendments to 31 January 2022.
  15. IAS 1 Presentation of Financial Statements (standard summary). IFRS Foundation (read 24 October 2026).
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General education built from the publicly available sources listed above. Not financial, legal, tax or investment advice. Naming a company, project or regulator is not an endorsement either way. Last checked 2026-10-24. Terms and disclaimer.