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Crypto Reporting for Companies: Then and Now

Published: July 09, 2025 | Bryan Joseph Alfonso

Before Unified Global had to follow ASC 350-60, companies holding cryptocurrency faced a frustrating problem: there was no specific accounting standard to guide them. Most businesses defaulted to treating crypto as an intangible asset under ASC 350, not because it made the most sense, but because it was the closest match.

As crypto entered the enterprise space, though, this accounting workaround quickly showed its limitations, especially when it came to reflecting the true value of digital assets on financial statements.

The Great Crypto Reporting Gap

Under ASC 350, cryptocurrencies were recorded at their acquisition cost and tested periodically, at least annually, for impairment. If the market value dropped below the cost, companies had to recognize a loss. But if the value increased again? Too bad: no gain could be recognized unless the asset was sold.

Bitcoin's volatility alone is roughly 4 times that of global equities, underscoring how misaligned this accounting treatment could be with market reality.

This one-sided treatment meant companies could only reflect downside movement, never upside. And worse, once an impairment loss was recorded, it couldn't be reversed even if the asset fully recovered in market value. The result? To cite, Unified Global has had to deal with financial statements that were often out of sync with reality, and the firm has had to fill the investors in investors with greater effort about the true performance of digital holdings.

ASC 350's Consequence on Cryptos

This accounting approach clashed with the very nature of crypto. Digital assets like Bitcoin or Ethereum are notoriously volatile, in that their prices swing dramatically within short periods. But because the old model only captured losses and not gains, it distorted the actual financial position of a company.

Imagine holding $2 million worth of crypto that appreciated significantly, but still reporting it at a $1 million impaired value. That kind of reporting gap didn't just affect accuracy, but also undermined decision-making, misrepresented risk, and created blind spots for stakeholders and auditors alike.

"With clearer standards now in place and being followed by Unified Global, businesses finally have the opportunity to align their books with the actual performance of their digital assets."

ASC 350-60: The Better Band-Aid

Despite its flaws, the classification of crypto as an intangible asset was a necessary stopgap. In the years leading up to the implementation of ASC 350-60, businesses had to balance compliance with common sense, often relying on supplemental disclosures or internal documentation care of analytic firms like Unified Global to explain their holdings beyond what GAAP could accommodate.

But as adoption grew, so did the urgency for a more fitting framework. Recognizing these gaps, the Financial Accounting Standards Board introduced ASC 350-60 under ASU 2023-08, effective for fiscal years beginning after December 15, 2024. This new guidance addresses crypto directly, offering a standard that allows qualifying digital assets to be initially recognized at cost and subsequently measured at fair value, with valuation gains and losses reported through net income.

The early days of crypto reporting taught companies a hard truth: if your accounting model doesn't reflect reality, it's only a matter of time before it fails to serve the business. But with clearer standards now in place and being followed by Unified Global, businesses finally have the opportunity to align their books with the actual performance of their digital assets.

As crypto continues to mature, so should your reporting practices. With ASC 350-60 now in effect, there's no better time to revisit how your business accounts for digital assets. Unified Global's technical accounting team is here to help you apply the new rules with clarity, precision, and confidence, so your finances reflect the full picture, not just part of it.

Crypto moves fast and acts fickle, but good thing we move smarter. Unified Crypto brings meaning to the mess by offering expert help in digital asset classification, cost-basis tracking, fair value measurement, and crypto tax compliance. From startups to exchanges, we help you decode the rules and build accounting systems that are audit-ready, regulator-proof, and growth-focused.

Bryan boasts a decade of experience as a CPA and TAAG manager at Unified Global. He specializes in applying IFRS and US GAAP to elevate financial reporting across industries like crypto, real estate, mining, SaaS, manufacturing, and NPOs.

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