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The U.S. accounting world is taking a bold step forward on how to treat cryptocurrencies. From 2025, new U.S. rules (FASB ASU 2023-08) will require most crypto assets, like Bitcoin and Ethereum, to be measured at fair value every reporting period. That means companies in the U.S. will now show crypto gains and losses directly in profit or loss, making financial statements more reflective of real market movements. In contrast, South African accountants applying IFRS will still be following a much more conservative approach: crypto assets remain intangible assets measured at cost less impairment, unless a rare revaluation model is used.
Under the new U.S. standard:
In other words, if a U.S. company’s crypto holdings rise in value, it shows a profit. If prices fall, it shows a loss, just like investments measured at fair value. This replaces the old “cost less impairment” approach that often made financial statements outdated, since impairments could not be reversed when prices recovered.
IFRS has not yet changed. Cryptocurrencies are still treated as intangible assets under IAS 38. That means:
So under IFRS, profit and loss figures remain stable, but at the cost of being less reflective of real-world prices.
The FASB has already implemented its fair-value model from 2025. The IASB has been considering similar moves: the June 2023 IASB meeting discussed whether to amend IAS 38 to better reflect fair-value measurement for crypto assets, but no project has been added to the standard-setting agenda yet. For now, until IFRS changes, US GAAP and IFRS remain notably divergent on subsequent measurement.
Let’s say a South African company buys Bitcoin for R1 million.
A U.S. company under the new FASB rule would simply revalue the Bitcoin to R1.2 million and show the gain in profit or loss. That’s a big difference in how financial performance appears to investors or lenders.
This is now a major divergence in standards.
U.S. companies will report crypto value changes more transparently. IFRS companies will show far less volatility, but less real-world information on financial position. South African preparers should continue applying IAS 38. But this U.S. move will increase pressure on the IASB to review crypto accounting. Fair value may be where the global profession is heading next.
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