iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
There is no single accounting method called the “Ethereum accounting method.” How an entity accounts for an ether holding depends first on its reporting framework, then on whether the asset falls within the relevant guidance and why the entity holds it. IFRS and U.S. GAAP reach different measurement rules for holdings within their respective guidance.
What “Ethereum accounting” means
Accounting for a straightforward cryptocurrency holding is not the same as accounting for every activity involving Ethereum. The IFRS guidance discussed here addresses a defined category of cryptocurrency holdings. U.S. GAAP’s dedicated crypto-asset guidance also has specific scope criteria. Staking, lending, custody, transaction fees, and contractual rights require separate analysis; the holdings rules alone do not settle them.
The applicable reporting framework matters. The comparison below summarizes the guidance for holdings within scope, not a universal rule for every token, contract, or Ethereum-related transaction.
Quick wins for a faster PC:
Scan for outdated or missing drivers - takes under a minuteDriver Scan →Repair Windows errors before they cause bigger problemsFix Now →| Question | IFRS | U.S. GAAP |
|---|---|---|
| Relevant guidance | The IFRIC agenda decision on cryptocurrency holdings directs entities to IAS 2 or IAS 38, depending on the facts. | FASB Accounting Standards Update 2023-08, Topic 350-60, for crypto assets that meet all of its criteria. |
| Classification or scope | IAS 2 applies when cryptocurrency is held for sale in the ordinary course of business; otherwise, IAS 38 applies to holdings within the decision’s defined scope. | The asset must satisfy every criterion in the update; the label “crypto” by itself does not establish that it qualifies. |
| Measurement and gains or losses | The applicable standard—IAS 2 or IAS 38—governs measurement. | Qualifying assets are measured at fair value each reporting period, with changes in fair value recognized in net income. |
| Effective-date information | The cited 2019 IFRIC decision does not state a new effective date. | Applies to fiscal years beginning after December 15, 2024, including interim periods within those fiscal years; early adoption is permitted. |
How IFRS treats cryptocurrency holdings
Start with the purpose of the holding
The IFRIC agenda decision, issued in 2019, says IAS 2 applies when cryptocurrency is held for sale in the ordinary course of business. If IAS 2 does not apply, the decision points to IAS 38 for the cryptocurrency holdings it addresses. The applicable standard determines the accounting; the IFRIC decision does not establish one measurement method for every entity that holds ether.
#1 Best Overall
- Proven security at scale: Over 9 years and millions of cards issued with no known remote hacks, while military‑grade EAL6+ security keeps your private keys locked inside the chip. Your cryptocurrencies stay strongly protected from online attackers.
- Tap once to manage your entire crypto wallet across 90 blockchains - no USB cables or Bluetooth, no batteries, no setup. Access 14,100+ coins & tokens, DeFi, NFTs, and staking instantly from your phone
- Smart backup: Use your second Tangem Wallet as your Backup keys with end‑to‑end encryption; no more papers, pictures. If one card is lost, the remaining can still restore full access, with an optional seed phrase available for advanced users.
- Engineered to last up to 25 years: Waterproof (IP69K), shockproof and tested for extreme temperatures from −25°C to 50°C. A durable cold wallet with long‑term protection and independently audited security.
- Trusted by 6 million users worldwide - buy, sell, swap, stake, and spend cryptocurrency directly. The secure offline storage wallet designed for how people actually use crypto wallets
The decision also describes the relevant cryptocurrency narrowly: a digital or virtual currency recorded on a distributed ledger and secured by cryptography, not issued by a jurisdictional authority or another party, and not giving rise to a contract between the holder and another party. For holdings meeting that description, the Committee concluded that cryptocurrency meets IAS 38’s definition of an intangible asset: it is separable and does not give its holder a right to receive a fixed or determinable number of units of currency. IAS 38 defines an intangible asset as identifiable, non-monetary, and without physical substance.
Consider the limited broker-trader provision
IAS 2 contains a provision for qualifying commodity broker-traders. For inventory principally acquired for near-term sale and profit from price fluctuations or a broker-trader margin, they consider fair value less costs to sell. This is a specific provision, not a general rule for all businesses holding ether.
Rank #2
- Effortlessly build your crypto portfolio via the all in one Ledger Wallet app: buy, sell, send, receive, swap, stake and more across popular blockchains. 15,000+ coins & tokens in a single dashboard. Keep a close eye on the market. Compare service providers. Track performance. Get timely alerts. Build your portfolio with confidence.
- Effortlessly build your crypto portfolio via the all in one Ledger Wallet app: buy, sell, send, receive, swap, stake and more across popular blockchains. 15,000+ coins & tokens in a single dashboard. Keep a close eye on the market. Compare service providers. Track performance. Get timely alerts. Build your portfolio with confidence.
- Enjoy Bluetooth connectivity, iOS access, and hours of battery use with this mobile-first, secure backup signer. Freedom you can depend on.
- Genuine Check: confirm your signer is authentic during setup with the Ledger Wallet app.
- Protect your signer: keep it in mint condition at all times with a bespoke Pod or Case to avoid scratches and everyday wear and tear.
How U.S. GAAP treats qualifying crypto assets
Check every scope criterion
FASB’s ASU 2023-08 applies only when an asset meets all the update’s stated criteria. The asset must:
Crashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minutePC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11- Meet the definition of an intangible asset.
- Provide no enforceable rights or claims on underlying goods, services, or other assets.
- Be created or reside on a blockchain or similar distributed ledger.
- Be secured through cryptography.
- Be fungible.
- Not be created or issued by the reporting entity or its related parties.
Whether a particular ether holding qualifies should be verified against the authoritative requirements and the entity’s facts; being a cryptocurrency is not, by itself, enough to establish scope.
Rank #3
- All your digital assets in one place. You can manage thousands of crypto including Bitcoin, Ethereum, Solana, Tether and more.
- Defend your identity against hackers: secure your online accounts with passwordless, hardware backed, 2FA logins for all your favorite apps and websites.
- Connectivity: USB-C cable connection only. No Bluetooth.Compatible with the Ledger Wallet crypto app, both desktop (Windows, macOS, Linux) and mobile (Android only). Not compatible with iOS.
- Protect your digital assets with the industry's best security: keep your private keys offline in your private signer, battle-tested by the Donjon's white hat hackers, CC EAL 6+ certified Secure Element, constantly updated Ledger OS.
- Effortlessly build your crypto portfolio via the all in one Ledger Wallet app: buy, sell, send, receive, swap, stake and more across popular blockchains. 15,000+ coins & tokens in a single dashboard. Keep a close eye on the market. Compare service providers. Track performance. Get timely alerts. Build your portfolio with confidence.
Apply the fair-value rule and effective date
For crypto assets within scope, ASU 2023-08 requires fair-value measurement each reporting period and recognition of fair-value changes in net income. The amendments apply to all entities for fiscal years beginning after December 15, 2024, including interim periods in those fiscal years. Early adoption is permitted. When preparing statements, confirm the applicable reporting period and check for any later authoritative amendments.
What disclosures may be required
IFRS disclosures
For holdings treated as inventory, IFRIC points to the applicable IAS 2 disclosures; for holdings accounted for under IAS 38, it points to IAS 38 disclosures. When holdings are measured at fair value, IFRS 13 disclosures also need consideration. The Committee further points to disclosure of significant judgments and consideration of material non-adjusting events after the reporting period.
Rank #4
- Proven security at scale: Over 9 years and millions of cards issued with no known remote hacks, while military‑grade EAL6+ security keeps your private keys locked inside the chip. Your cryptocurrencies stay strongly protected from online attackers.
- Tap once to manage your entire crypto wallet across 90 blockchains - no USB cables or Bluetooth, no batteries, no setup. Access 14,100+ coins & tokens, DeFi, NFTs, and staking instantly from your phone
- Smart backup: Use your second Tangem Wallet as your Backup keys with end‑to‑end encryption; no more papers, pictures. If one card is lost, the remaining can still restore full access, with an optional seed phrase available for advanced users.
- Engineered to last up to 25 years: Waterproof (IP69K), shockproof and tested for extreme temperatures from −25°C to 50°C. A durable cold wallet with long‑term protection and independently audited security.
- Trusted by 6 million users worldwide (4.9 App Store, 4.8 Google Play) - buy, sell, swap, stake, and spend cryptocurrency directly. The secure offline storage wallet designed for how people actually use crypto wallets
U.S. GAAP disclosures
FASB says the update requires disclosures about significant holdings, contractual restrictions on sale, and changes during the reporting period.
The Tool Desk
Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →When holdings guidance is not enough
Staking or validator rewards, lending, customer custody, transaction fees, and other contractual arrangements may involve rights and obligations beyond a simple holding. The IFRIC decision and FASB’s scope criteria do not establish a universal accounting answer for those fact patterns. Analyze the relevant arrangements under the entity’s reporting framework and current authoritative guidance rather than extending the holdings treatment automatically.
Quick Recap
Best Value
- READY IN 3 MINUTES – Set up your ELLIPAL X Card crypto wallet on the offline Starter device, then tap to the ELLIPAL mobile App and start using it. This 100% offline crypto wallet is a no battery crypto wallet with no charging, no firmware updates, and no complicated setup.
- TURN ANY WALLET INTO A CARD – Already have a wallet? Import your recovery phrase from MetaMask, Trust Wallet, Ledger, Trezor, or any compatible seed phrase wallet. X Card works as a backup wallet and physical twin of your existing bitcoin wallet, ethereum wallet, NFT wallet, or altcoin wallet — no transfers, no new accounts, no starting over.
- BUILT ON AN EAL6+ SECURE CHIP – Designed as a secure crypto wallet and private key wallet, X Card generates and stores your private keys inside the EAL6+ secure chip. Your keys never reach your phone, the App, USB, Bluetooth, or the internet, making it a true no bluetooth hardware wallet and no USB crypto wallet.
- ONE APP, EVERYTHING CRYPTO – Manage more with one cold storage wallet. Buy, sell, swap, send, spend, and earn across 45+ blockchains and 10,000+ tokens. Use X Card as your cryptocurrency wallet, coins and tokens wallet, DeFi wallet, and staking wallet for everyday crypto management.
- TAP TO CRYPTO – Carry your crypto cold wallet on a card and secure every transaction with one NFC tap. ELLIPAL X Card combines the simplicity of a crypto wallet with the protection of a cold storage hardware wallet.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
