Cryptoasset Accounting Under IFRS and FRS 102: The 2026 Practitioner's Guide

Cryptoassets have become increasingly relevant to accountants, yet accounting for them raises real challenges — not least because there is no single standard written specifically for them. This guide explains how cryptoassets are generally accounted for under IFRS and FRS 102, the judgements involved, and why the area is complex — in clear, plain language. Because this is an evolving area, always check the current standards, the latest guidance and your specific circumstances, ideally with specialist advice, as the position can change. For related reading, see our IFRS 13 fair value guide.

Why cryptoasset accounting is challenging

The central challenge is that no accounting standard was written specifically for cryptoassets. As a result, accountants have to apply existing standards by analogy, based on the nature of the particular cryptoasset and how it's held. Cryptoassets vary widely — from cryptocurrencies held for investment, to tokens with different rights and purposes — so there's no single answer that fits all of them. This means careful judgement is required to determine the appropriate treatment in each case, considering the specific characteristics of the asset and the entity's reasons for holding it. The lack of bespoke guidance is what makes the area genuinely difficult.

How cryptoassets are generally treated under IFRS

Under IFRS, a holding of a typical cryptocurrency generally does not meet the definition of cash, a cash equivalent, or (in most cases) a financial asset. Instead, the common conclusions are that a cryptocurrency held is usually accounted for as:

• An intangible asset — applying IAS 38, which is the treatment many entities reach for cryptocurrencies held; or
• Inventory — applying IAS 2, where an entity holds cryptoassets for sale in the ordinary course of business (for example, a broker-trader).

The appropriate treatment depends on the nature of the asset and how it's held, and other tokens with different features may require different analysis. This is a general overview rather than a definitive rule, so the specific facts always matter.

The position under FRS 102

Under FRS 102 — the financial reporting standard applicable in the UK and Ireland for many entities — the analysis follows broadly similar logic. There is again no specific standard for cryptoassets, so entities apply the existing framework based on the asset's nature and how it's held, often reaching conclusions comparable to IFRS (such as treating holdings as intangible assets or, for those holding them for sale in the ordinary course of business, as inventory). As with IFRS, the specific characteristics of the cryptoasset and the entity's purpose in holding it drive the treatment. Always check the current version of FRS 102 and any relevant guidance, as standards and interpretations in this area continue to develop.

Measurement and other considerations

Beyond classification, measurement raises further questions. The intangible asset and inventory models have their own measurement rules, which affect how gains, losses and any impairment are recognised — and these may not always reflect the way holders think about the value of volatile cryptoassets. Other considerations can include disclosure (giving users a clear picture of the entity's cryptoasset holdings and risks), and the treatment of related activities such as mining or accepting crypto as payment. Because these areas involve judgement and the guidance continues to evolve, careful analysis and, where appropriate, specialist advice are important.

Why this matters and staying current

Cryptoasset accounting matters because more entities now hold or transact in cryptoassets, and getting the accounting right affects the reliability of their financial statements. Given the complexity and the absence of bespoke standards, this is an area where careful, well-documented judgement is essential. It's also a fast-evolving field: standard-setters continue to consider cryptoassets, and guidance and practice are developing. For that reason, it's important to check the latest standards, interpretations and guidance, and to take specialist advice where needed, rather than relying on a fixed view. This overview is a general guide only and not a substitute for professional advice on specific circumstances.

Frequently asked questions

Is there a specific accounting standard for cryptoassets?

No — there's no standard written specifically for cryptoassets, so accountants apply existing standards based on the nature of the asset and how it's held, which requires judgement.

How are cryptocurrencies usually accounted for under IFRS?

A typical cryptocurrency holding is generally not cash or a financial asset; it's commonly accounted for as an intangible asset (IAS 38), or as inventory (IAS 2) where held for sale in the ordinary course of business.

How does FRS 102 treat cryptoassets?

FRS 102 has no specific cryptoasset standard either, so entities apply the existing framework based on the asset's nature and purpose — often reaching conclusions comparable to IFRS. Check the current standard and guidance.

Why is this area so complex?

Because cryptoassets vary widely, no bespoke standard exists, measurement models may not reflect how holders view value, and the guidance is still evolving — making careful judgement and current advice essential.

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