Accounting for Ethereum (ETH)
Ethereum is rarely just held — it's staked, spent on gas, and used across DeFi, which makes accounting for it more involved than Bitcoin. This page covers how ETH is classified and measured, the staking and gas angles, and how CryptaCount keeps it on the books.
General information, not accounting or tax advice. Confirm the right treatment for your facts with your auditor or advisor.
What Ethereum is (for accounting)
Ethereum (ETH) is a fungible, cryptographically secured digital asset on its own distributed ledger, not issued by any entity, with no enforceable claim on an underlying asset. Like Bitcoin, that places it in scope of the current crypto accounting standards — but its proof-of-stake design adds an income dimension Bitcoin doesn't have.
How Ethereum is classified and measured
- US GAAP — ETH is an intangible asset in scope of ASC 350-60 (ASU 2023-08): measured at fair value each period, gains and losses in net income. → Crypto accounting under US GAAP →
- IFRS — ETH is an IAS 38 intangible (cost with IAS 36 impairment, or revaluation where an active market exists). → Crypto accounting under IFRS →
Staking, gas, and DeFi
This is where ETH gets distinctive:
- Staking rewards are generally income at their value when received, then a capital gain or loss on later disposal. Liquid staking (e.g. receiving a staking token) adds complexity and is a judgment area. → Staking tax →
- Gas fees paid in ETH are a disposal of that ETH and a cost of the underlying transaction.
- DeFi activity (swaps, liquidity, lending) generates its own taxable events. → DeFi tax →
Cost basis and tax
Disposals of ETH are generally capital gains events using your jurisdiction's cost-basis method; staking and other rewards are income at receipt, which also sets their basis. Cost-basis methods →
How CryptaCount handles Ethereum
- Ingests all ETH activity — trades, transfers, staking rewards, gas, and DeFi
- Classifies rewards as income at receipt and disposals as gains
- Measures ETH at fair value each period under your chosen standard
- Posts journal entries to your ERP with a full audit trail
See the sub-ledger → · Crypto assets →
General information, not accounting or tax advice. Verify with your auditor or advisor.
FAQ
As an intangible asset — under US GAAP (ASU 2023-08) measured at fair value each period with gains and losses in net income; under IFRS an IAS 38 intangible (cost or revaluation).
Generally as income at their value when received, then a capital gain or loss on later disposal. Liquid staking adds complexity and is a judgment area.
Paying gas in ETH is a disposal of that ETH and a cost of the underlying transaction.
Yes. It ingests staking rewards, gas, and DeFi activity, classifies income and gains, and measures ETH at fair value — all with an audit trail.