This follows criticisms from stakeholders the current method for accounting for crypto assets as indefinite-lived intangible assets, which is a cost less impairment model, does not provide investors with decision-useful information or reflect the underlying economics of those assets.

Specifically, reflecting only the decreases, but not the increases, in the value of crypto assets in the financial statements until they are sold does not provide relevant information that reflects the underlying economics of those assets and an entity’s financial position.

Certain investors also requested additional disclosures about the types of crypto assets held by entities and changes in those holdings.