Insights

Fresh thinking and actionable insights that address critical issues your organization faces.

Learn more

Resources

Services

KPMG's multi-disciplinary approach and deep, practical industry knowledge help clients meet challenges and respond to opportunities.

Services to meet your business goals

Technology Alliances

KPMG has market-leading alliances with many of the world's leading software and services vendors.

View all Alliances

Industries

Helping clients meet their business challenges begins with an in-depth understanding of the industries in which they work. That’s why KPMG LLP established its industry-driven structure. In fact, KPMG LLP was the first of the Big Four firms to organize itself along the same industry lines as clients.

How We Work

We bring together passionate problem-solvers, innovative technologies, and full-service capabilities to create opportunity with every insight.

Learn more

Careers & Culture

What is culture? Culture is how we do things around here. It is the combination of a predominant mindset, actions (both big and small) that we all commit to every day, and the underlying processes, programs and systems supporting how work gets done.

Learn more
Relevant Results
Sorry, there are no results matching your search.
Autocomplete suggestions are available. Use up and down arrows to review and enter to select.
See more results

Accounting for crypto assets by investment companies

Executive Summary | April 2022

Executive summary of the accounting for acquired crypto assets by investment companies subject to ASC 946.

Download PDF
Share

As intangible assets, most crypto assets are accounted for as ‘other investments’ under ASC 946-325. Staking those assets brings incremental considerations. Our executive summary explains.

Crypto and other digital assets: Hot Topics
Read more

Applicability

  • Investment companies subject to ASC 946 that invest in crypto assets.

Key impacts

  • There is no specific US GAAP on crypto assets, for investment companies or otherwise.
  • Most crypto assets meet the definition of an intangible asset, and are therefore accounted for as ‘other investments’ and measured at fair value on a recurring basis under ASC 946-325.
  • Investment companies need to consider the impact that mining or staking activities could have on their classification as an investment company under ASC 946.
  • Staking income generally meets the definition of ‘revenue’ and is accounted for under ASC 606 as a component of investment income.
  • Staked crypto assets are generally not derecognized while staked.
  • Sales of crypto assets generally follow ASC 610-20 (for crypto intangible assets) or ASC 860-20 (for crypto assets that meet the definition of a financial asset).
  • Determining the cost of sold crypto assets should follow the investment company’s specific identification or average cost method policy election for sales of securities under ASC 946-320. If an investment company does not have an accounting policy under ASC 946-320, it can elect either method by analogy to ASC 946-320.

Download the document:

Accounting for crypto assets

Download PDF

Meet our team

Image of Scott Muir
Scott Muir
Partner, Dept. of Professional Practice, KPMG US
Read bio
Image of Chase Stobbe
Chase Stobbe
Partner, Dept. of Professional Practice, KPMG US
Read bio
Image of Scott Muir
Scott Muir
Partner, Dept. of Professional Practice, KPMG US
Read bio
Image of Chase Stobbe
Chase Stobbe
Partner, Dept. of Professional Practice, KPMG US
Read bio

Accounting Research Online

Access our accounting research website for additional resources for your financial reporting needs.

Access ARO

KPMG. Make the Difference.


Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. KPMG LLP does not provide legal services.

The information contained herein is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

© 2024 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's Privacy Statement.

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Search now!

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Submit

Office locations

View locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Learn more

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Contact

Headline