Reporting Your Company's Crypto Right in 2025

Now that ASC 350-60 allows companies to measure crypto at fair value, the spotlight shifts to how clearly those assets are reported. Numbers on a balance sheet don't mean much if they're buried in vague categories or missing key context.

That's where disclosures come in. For businesses holding crypto, they're a way to show investors, auditors, and internal leadership that your digital assets are being handled with structure, transparency, and care. Unified Global has worked with clients across industries to prepare crypto disclosures that meet audit scrutiny while providing decision-useful insight.

So, what exactly needs to be disclosed under ASC 350-60?

1. Detail Each Significant Holding - Companies must break down the name, cost basis, fair value, and number of units of each major cryptocurrency they hold.

   For example, if your company holds 80 BTC and 3,000 ETH, you'll need to report each one separately - showing how much you paid for them, how much they're worth now, and how many tokens you own. Anything else, like minor altcoins, can be lumped into an aggregate total. This gives stakeholders a clear picture of exposure to specific assets, especially the volatile ones.

   As of late 2023, nearly 40 publicly traded companies held a combined $5.7 billion in Bitcoin alone, highlighting the significant scale at which corporate entities are engaging with crypto, and why visibility into those holdings matters more than ever. Unified Global helps clients assess materiality thresholds to ensure reporting is both transparent and proportionate.

2. Explain Any Restrictions on Selling - If your crypto assets are subject to contractual sales restrictions, say, lockups after participating in a token offering, those limitations must be disclosed. You'll need to note the fair value of the restricted assets, explain what kind of restriction exists, how long it lasts, and what events could cause it to expire.

   For example, if your company holds $500K in tokens that can't be sold for six months, your financials need to reflect that immobility.

3. Provide a Movement Schedule (Roll Forward) - A roll forward is a running tally of all crypto activity for the reporting period. This includes additions (new purchases), disposals (sales or transfers), and fair value changes.

   Think of it like a bank statement for your crypto: where you started, what came in, what went out, and where you ended up. This helps users of financial statements track how your digital asset position evolved over time.

   For many businesses, working with Unified Global has streamlined the preparation of movement schedules, especially in reconciling data across wallets, exchanges, and accounting systems.

4. Show Gains or Losses on Dispositions - If you sold crypto during the year, you'll need to show the difference between what you paid for it (cost basis) and what you sold it for.

   More importantly, you must describe what triggered the disposal - was it a sale to raise cash, or a strategic move to rebalance your holdings? This provides context to your gains and losses, turning raw numbers into useful insight.

5. Identify Where Gains/Losses Are Reported in Income - Not all companies break out crypto gains and losses as standalone line items. If your income statement lumps them into broader categories like "other income," ASC 350-60 requires you to disclose exactly where those numbers are buried.

   This allows users of financial reports to spot crypto-related impacts - even if they aren't labeled as such.

6. Explain Your Cost Basis Method - Finally, you need to disclose how you determine the cost basis for your crypto. Are you using FIFO (first in, first out), LIFO (last in, first out), or specific identification? This affects how gains and losses are calculated, especially when crypto is sold or transferred.

   For instance, using FIFO might yield different tax and profit implications compared to specific identification - so transparency here is key.

   And yet, even among companies previously reporting crypto under ASC 350, only 35% disclosed fair value information in Q4 2021-a figure that highlights just how crucial the new disclosure requirements under ASC 350-60 will be for consistency and transparency.

NOTE: the first two disclosures are required for all entities holding digital assets, while the rest are required for entities not subject to industry-specific standards, like broker-dealers and investment companies.

For crypto assets that don't qualify under ASC 350-60 and are still reported at cost, companies must disclose any impairment losses: how much was lost, why it happened, and where it shows up in the income statement if it's not listed separately.

Importantly, there is no prescribed "bright-line" threshold to determine what qualifies as a significant crypto holding; companies are expected to apply judgment based on both qualitative and quantitative factors.

With clearer standards and specific disclosures now in place, companies can finally report their crypto holdings in a way that's not just compliant, but credible, consistent, and drives smarter decisions. For your team, they may be about checking boxes, but for your clients, it's about earning their trust in a volatile space.

With crypto reporting now under sharper scrutiny, it pays to have a partner who understands the technical landscape and speaks the language of auditors and regulators alike. That's where Unified Global's accounting pros can come in, helping you bridge crypto complexity with clear, credible reporting.

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.