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Mike Andrusko Breaks Down the New Era of Digital Asset Accounting on LumiQ Podcast

As the accounting landscape for digital assets undergoes a historic shift, LumiQ has released a new episode featuring Centri’s Mike Andrusko, Partner and Fintech & Digital Assets Practice Leader, to help finance professionals navigate the newly introduced ASC 350-60 standard.

The standard marks a major turning point in how organizations account for crypto, introducing a fair value measurement model. “Fair value is a more economic reflection of what that digital asset is held at,” says Andrusko, emphasizing how the guidance aligns reporting with economic reality. These guidelines move away from the long-criticized impairment-only approach, enabling companies to recognize both gains and losses in real time.

A Clearer Framework for a Fast-Moving Asset Class

In the episode, Andrusko explains that ASC 350-60 applies to all entities (public, private, and not-for-profit) holding qualifying crypto assets. To fall within scope, six criteria must be met, such as being intangible, cryptographically secured, blockchain-based, fungible, and not issued by the reporting entity. Exclusions include NFTs, utility tokens, internally created tokens, and certain stablecoins.

The standard became effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

Key Insights Covered in the Episode

Fair Value Measurement Requirements

Andrusko outlines how entities must identify their principal market and prioritize Level 1 inputs (active quoted prices) when determining fair value. When unavailable, entities may rely on Level 2 or Level 3 valuation models. The guidance clarifies that transferable restrictions can impact valuation, while entity-specific restrictions generally do not.

Financial Statement Presentation

ASC 350-60 requires crypto assets within scope to be presented as separate line items. Classification as current or non-current depends on whether assets are held for trading or long-term investment. Companies may also need multiple line items if they hold both fair value (in scope of ASC 350-60) and cost-based (out of scope of ASC 350-60) crypto assets. Unrealized gains and losses from fair value changes are newly introduced under this standard.

Income Statement Impacts

Depending on the business model, fair value changes may be recognized as operating or non-operating income. Crypto-native businesses (e.g., exchanges) may present changes within operating results, while non-core holders may classify them as non-operating.

Extensive Disclosure Requirements

The new standard mandates detailed disclosures, including asset names, units held, cost basis, and fair value. Entities must also provide a roll-forward of holdings, broken out by additions (purchases, mining, staking, customer payments) and dispositions (sales, transfers, loans). Further disclosure is required for restricted assets and cost-basis methods.

How Centri Can Help

With crypto adoption expanding across industries, ASC 350-60 offers long-awaited clarity on measurement, presentation, and disclosure. As organizations adapt to the new requirements of ASC 350‑60, Centri provides the technical accounting, valuation, and implementation support needed for a smooth transition. Our Digital Assets Practice advises companies on scoping their holdings, establishing fair value methodologies, updating financial statement presentation, and designing internal controls tailored to crypto‑native and traditional businesses. Whether your organization needs support with adoption, valuation modeling, disclosure requirements, or ongoing audit‑ready processes, Centri’s specialists ensure your reporting is accurate, compliant, and aligned with evolving industry best practices.

Listen to the full podcast on LumiQ.