IFRS 20 Crypto Assets: How to Prepare for the New Accounting Standard
The International Accounting Standards Board (IASB) has issued IFRS 20, the first comprehensive standard dedicated to ifrs crypto assets. This marks a pivotal shift for firms that hold or manage digital assets. Until now, crypto lacked specific guidance under IFRS, forcing preparers to rely on analogies like IAS 38 for intangible assets or IAS 32 for financial instruments. IFRS 20 changes that by introducing tailored recognition, measurement, and disclosure requirements. For accounting firms and finance teams, the clock is ticking. The standard is effective for annual periods beginning on or after 1 January 2027, but early adoption is permitted. The message from Deloitte's recent video is clear: start preparing now. This article explains what IFRS 20 requires, how it compares to US GAAP, and what steps you should take to ensure a smooth transition.
What IFRS 20 Means for Crypto Accounting
IFRS 20 defines crypto assets as digital representations of value that are not issued by a central bank, are secured by cryptography, and are fungible. The standard applies to holdings of such assets, excluding stablecoins pegged to fiat or commodities. Under IFRS 20, crypto assets are measured at fair value through profit or loss (FVTPL), with limited exceptions. This is a major departure from the previous practice of treating them as intangible assets with impairment testing. The new approach provides more relevant information to investors, reflecting the volatile nature of crypto markets. For firms, this means updating valuation models, reconciling data from exchanges, and ensuring robust internal controls. The standard also requires extensive disclosures, including exposure to price risk, custody arrangements, and any restrictions on use.
Comparing IFRS 20 with US GAAP: FASB Crypto Fair Value
While IFRS 20 is new, US GAAP already has guidance under ASC 350-60, which requires crypto us gaap accounting at fair value with changes in net income. The FASB's update, effective for fiscal years beginning after 15 December 2025, aligns closely with IFRS 20. Both standards mandate fair value measurement, but there are nuances. For example, IFRS 20 permits the use of cost as a proxy for fair value in certain circumstances, while US GAAP does not. Additionally, IFRS 20 includes specific guidance on transaction costs and subsequent measurement, whereas ASC 350-60 is simpler. Firms reporting under both frameworks must carefully track differences. The convergence is a positive step for global consistency, but preparers need to understand the distinct requirements of each standard.
Practical Steps to Prepare for IFRS 20
Preparation involves several key areas. First, assess your portfolio of crypto assets to determine which fall within the scope of IFRS 20. Second, establish fair value measurement processes, including sourcing reliable price data from active markets. Third, update your accounting policies and internal controls to reflect the new recognition and disclosure requirements. Fourth, train your finance team on the standard's nuances. Finally, consider the interaction with other reporting frameworks, such as CARF and DAC8. The carf crypto reporting framework and dac8 reporting are separate but complementary; they focus on tax transparency and information exchange. While IFRS 20 covers financial reporting, CARF and DAC8 impose obligations on crypto-asset service providers to report transactions to tax authorities. Integrating these requirements early can prevent duplication of effort.
How CryptaCount Can Help
CryptaCount's sub-ledger solution is designed to handle the complexities of crypto ifrs accounting. It automates fair value calculations, reconciles data from multiple exchanges, and generates disclosures compliant with IFRS 20. For firms transitioning from legacy intangible asset accounting, our platform provides a clear audit trail and supports both IFRS and US GAAP. Additionally, our compliance module helps align with CARF and DAC8 reporting, ensuring your firm meets all regulatory obligations. By centralizing crypto data, CryptaCount reduces manual effort and minimizes errors, freeing your team to focus on advisory services.
Illustrative Scenario
To illustrate how this applies in practice, consider the following scenario: A UK-based investment firm, Greenfield Capital, holds a portfolio of bitcoin and ether. Their finance team, led by Priya, is preparing for the 2027 effective date of IFRS 20. They use CryptaCount to automate fair value measurement and generate the required disclosures. The platform pulls real-time prices from major exchanges, calculates gains and losses, and produces a report ready for audit. Priya also uses the compliance module to prepare CARF reports for HMRC. The transition is smooth, and Greenfield Capital is audit-ready months before the deadline.
Source: Deloitte IAS Plus