Under IFRS, Bitcoin held by a company is generally accounted for as an intangible asset under IAS 38, using either the cost model or, where an active market exists, the revaluation model. If the company holds Bitcoin for sale in the ordinary course of business, it is accounted for as inventory under IAS 2 instead. IFRS does not contain a standard equivalent to the US fair value rules in ASU 2023-08.
This article explains how IFRS Bitcoin accounting works, the choices available, and how the outcome differs from US GAAP.
The starting point: the IFRIC agenda decision
IFRS has no dedicated standard for Bitcoin. The main guidance is an agenda decision published by the IFRS Interpretations Committee (IFRIC) in June 2019.
The Committee considered which existing standard applies to holdings of digital currencies such as Bitcoin. It concluded:
- Bitcoin is not cash, because it is not generally used as a medium of exchange or as the monetary unit in pricing goods and services to the extent that would make it cash.
- Bitcoin is not a financial asset, because it does not give the holder a contractual right to receive cash or another financial asset.
- Bitcoin meets the definition of an intangible asset under IAS 38: an identifiable non-monetary asset without physical substance.
- Where Bitcoin is held for sale in the ordinary course of business, IAS 2 Inventories applies instead.
Agenda decisions do not change the standards. But they explain how existing standards apply, and auditors and regulators expect companies to follow them.
Intangible asset under IAS 38
Most corporate treasuries hold Bitcoin as a long-term reserve, not for trading. For them, IAS 38 applies. The standard offers two measurement models.
The cost model
Bitcoin is carried at cost less any accumulated impairment losses.
- Impairment is assessed under IAS 36 when there is an indication that the asset may be impaired.
- Because Bitcoin is generally treated as having an indefinite useful life, it is not amortised. It is tested for impairment at least annually.
- Unlike the old US GAAP model, IAS 36 allows impairment losses to be reversed if value recovers, but only up to the carrying amount that would have applied had no impairment been recognised. In practice, the value cannot be written up above original cost.
The revaluation model
The revaluation model is available only if there is an active market for the asset. For Bitcoin, an active market will usually exist, but each company should confirm this for the markets it can access.
Under this model:
- Bitcoin is carried at fair value at the revaluation date.
- Increases in value are recognised in other comprehensive income (OCI) and accumulated in a revaluation surplus within equity.
- Decreases are recognised in profit or loss, except to the extent they reverse an earlier surplus for the same asset.
- On sale, the revaluation surplus is transferred directly to retained earnings. It is not recycled through profit or loss.
Revaluations must be made regularly enough that the carrying amount does not differ materially from fair value. The model must be applied to the whole class of asset.
CFO tip: if you choose the revaluation model, be clear with your board that gains will sit in equity, not in profit. Agree the valuation date, principal market and pricing source with your auditor before the first reporting period.
Inventory under IAS 2
Some companies buy and sell Bitcoin as part of their normal business. For them, IAS 2 applies.
- The general rule is the lower of cost and net realisable value.
- Commodity broker-traders may instead measure inventory at fair value less costs to sell, with changes recognised in profit or loss.
The broker-trader route is the nearest IFRS equivalent to the US fair value model. But it is only available to entities that genuinely acquire Bitcoin to sell in the near future and profit from price fluctuations or a trader's margin. A corporate treasury holding Bitcoin as a reserve asset will not normally qualify.
Comparing the models
| Approach | Measurement | Gains | Losses |
|---|---|---|---|
| IAS 38 cost model | Cost less impairment | Not recognised above cost | Profit or loss |
| IAS 38 revaluation model | Fair value | OCI, revaluation surplus | Profit or loss, unless reversing surplus |
| IAS 2 (general) | Lower of cost and NRV | Not recognised above cost | Profit or loss |
| IAS 2 (broker-trader) | Fair value less costs to sell | Profit or loss | Profit or loss |
| US GAAP (ASU 2023-08) | Fair value | Net income | Net income |
How IFRS differs from US GAAP
The FASB standard on digital assets (ASU 2023-08) requires fair value through net income for in-scope holdings. IFRS does not.
The practical consequences:
- Earnings. A US GAAP reporter sees Bitcoin price moves in net income. An IFRS reporter using the revaluation model sees gains in OCI and losses in profit or loss, which is asymmetric.
- Comparability. Two companies holding the same Bitcoin can report very different profit figures depending on their framework.
- Group reporting. A subsidiary reporting under one framework and a parent reporting under another will need conversion adjustments.
We explain the US position in ASU 2023-08: fair value accounting for Bitcoin explained and the history in Bitcoin accounting: impairment vs fair value.
Disclosures and judgement
IFRS does not prescribe Bitcoin-specific disclosures in the way ASU 2023-08 does. But the general requirements still apply. The IFRIC agenda decision reminded preparers of their obligations under IAS 1 to disclose significant judgements, and under IAS 10 to consider material changes in fair value after the reporting date.
Good practice is to disclose:
- The accounting policy applied and why.
- Units held, carrying amount and fair value.
- Any restrictions, such as Bitcoin pledged as collateral.
- Custody arrangements, where relevant to understanding the risks.
See how Bitcoin appears on the balance sheet for presentation, and the audit readiness checklist for controls. Companies should take their own accounting, tax and legal advice on their specific position.
How The Bitcoin World helps
We help finance teams under IFRS and US GAAP design the processes, records and board materials that support a Bitcoin position. We work alongside your auditors and advisers. Execution and custody are carried out by licensed third-party institutions. Learn more about our corporate treasury and board advisory services.