Month: December 2021
You can see the splash of cryptocurrencies across news headlines daily. However, the field of crypto investing is still comparatively uncharted territory. Thus, it is essential to know what cryptocurrencies are before you invest in them.
Is crypto an intangible asset?
Generally, cryptocurrency is accounted for as indefinite-lived intangible resources. The exception is in a few specific circumstances whereby investment companies can hold these as an investment. In which case, they apply fair value accounting.
Is crypto a financial instrument?
Cryptocurrency is not a financial mechanism under U.S. GAAP. The reason for this is that they do not signify a contract or cash.