Tech
A changing reporting landscape at the intersection of accounting and cryptocurrency
Cryptocurrency continues to reshape the financial landscape. As cryptocurrency moves from niche to mainstream, companies are grappling with how to account for these volatile digital assets. New research from Scheller College of Business accounting professor Robbie Moon, and his co-authors Chelsea M. Anderson, Vivian W. Fang, and Jonathan E. Shipman, sheds light on how U.S. public companies have navigated crypto holdings and accounting practices over the past decade.
ASU 2023-08, the Financial Accounting Standards Board’s (FASB) newly enacted rule, aims to bring clarity and consistency to crypto asset reporting with the mandate for fair value reporting. Moon’s research, which examined a comprehensive set of companies from 2013 to 2022, looks at the exponential rise in corporate crypto investments and the diverse, and often inconsistent, ways firms have reported them.
In “Accounting for Cryptocurrencies,” Moon and his co-authors work to better understand this pivotal point in financial reporting with research that dives into why firms hold crypto—whether for mining, payment acceptance, or investment—and how reporting practices have evolved to meet this current moment. The work is published in the Journal of Accounting Research.
Keep reading to learn more about Moon’s research and why it matters right now.
Why do companies hold cryptocurrencies, and how has this changed over time?
Companies hold cryptocurrency for three main reasons: they mine it, they accept it as payment, or they consider it an investment. Early on, most businesses kept crypto because customers used it to pay for goods and services. Around 2017, that trend declined, and more companies began mining crypto themselves. Today, mining accounts for about half of corporate crypto holdings, while payment acceptance and investment make up the rest.
What were the main challenges companies face when trying to report cryptocurrency holdings in their financial statements?
Until the end of 2023, there were no official rules on how companies should report cryptocurrency on their financial statements. Back in 2018, the Big Four accounting firms (Deloitte, PwC, EY, and KPMG) stepped in with guidance, suggesting that crypto be treated like intangible assets, similar to things like patents or trademarks. This is known as the impairment model.
What is the difference between the ‘fair value model’ and the ‘impairment model’ for accounting crypto assets, and why does it matter?
The two accounting methods differ in how they handle changes in crypto value. The fair value model updates the value of a company’s crypto to match current market prices every reporting period. If the price goes up or down, the change shows up on the company’s income statement as a gain or loss.
The impairment model only lets companies record losses when the value drops below what they paid. If the price goes up, they can’t record the increase.
The difference in the two approaches can best be seen when crypto prices rise. Under the impairment model, companies’ balance sheets understate the true value of the crypto since the gains cannot be recorded. The fair value model allows companies to adjust the balance sheet value of crypto as market prices change.
What factors led ASU 2023–08 to favor fair value reporting?
When the FASB was trying to decide if they should add crypto accounting to their standard setting agenda, they reached out to the public for feedback. The response was overwhelming and most practitioners and firms called for the use of the fair value model.
How do big accounting firms, like Deloitte or PwC, influence how companies report their crypto holdings?
When there aren’t official rules for complex issues like crypto accounting, the Big Four firms often step in to guide companies. In 2018, they recommended using the impairment model, which they viewed as most appropriate based on existing standards. After that, most companies switched from fair value reporting to the impairment approach.
Their guidance in 2018 was based on what was allowed under the standards at that time. With the new rule in place, the firms will likely help clients manage the transition.
Does using fair value accounting for crypto make a company’s stock price more volatile or its earnings reports more useful to investors?
The primary downside of using a fair value model for a risky asset like crypto is how volatility affects earnings. Moon’s research suggests that stock price volatility increases for firms using the fair value model, and it doesn’t appear the model makes earnings more useful for investors. That said, the results should be viewed cautiously because the study’s sample largely consisted of smaller companies.
Why does this research matter right now?
This research matters because more companies are investing in cryptocurrency. That trend is only expected to grow. This research looks at how businesses handled crypto before official rules came out in 2023, showing that many treated it like traditional investments. This provides a baseline against which future research can evaluate the new rule.
The research also warns that the fair value approach could make stock prices more volatile without necessarily making earnings reports more useful for investors.
More information:
Chelsea M. Anderson et al, Accounting for Cryptocurrencies*, Journal of Accounting Research (2025). DOI: 10.1111/1475-679x.70018
Citation:
A changing reporting landscape at the intersection of accounting and cryptocurrency (2025, November 17)
retrieved 17 November 2025
from https://techxplore.com/news/2025-11-landscape-intersection-accounting-cryptocurrency.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no
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Tech
Meta Is in Crisis, Google Search’s Makeover, and AI Gets Booed by Graduates
Leah Feiger: Let’s invest.
Zoë Schiffer: They have that going for a while.
Leah Feiger: It wasn’t full Google, but it—
Zoë Schiffer: Somewhat there.
Leah Feiger: —had that vibe. To me, someone so on the outside of this in every single way, I know about these layoffs because they’ve been, A) so chaotic, but B) in some ways, needlessly so. Not to say that other tech companies aren’t firing scores of workers all the time. That feels like something we discuss on this podcast frequently, but this is happening with such a large runway and in a way that’s making employees feel so terrible about themselves.
Brian Barrett: Well, because it’s not just the layoffs, right? It’s also, even if you stay there, if you’re not culled from the herd, you are going to have to deal with this world in which you’ve got spyware on your laptops training AI to probably take your job at some point, right?
Zoë Schiffer: Explain that a little bit.
Brian Barrett: Meta announced, and this was more public, that they were going to put software on employee laptops that would monitor their keystrokes and how they move their cursors and basically how they do their job as Meta engineers and use that as training data for their own internal models to try to make their AI models better because they’re running out of other sources.
Zoë Schiffer: And could you opt out of that, Brian?
Brian Barrett: That’s a great question. I’m so glad you asked. You could not opt out.
Zoë Schiffer: I felt you didn’t know the answer to that one.
Brian Barrett: In fact, when an employee asked in a very public forum within Meta, “Hey, could we not do this?” Zoë, the response was?
Zoë Schiffer: Oh, absolutely you’re going to do this and shame on you for asking. And some of the employees who are staying, actually thousands of the employees who are staying, are getting drafted into the AI ranks. We published a piece today that was kind of about the morale inside the company, but also how there’s been this mad dash to use up perks and stipends that employees have. But one of the things that’s said at the end was that remaining employees are being asked to join AI teams. So whatever your job was previously, they’re internally getting drafted. You’re getting drafted into the AI ranks, now your job is going to look quite different.
Brian Barrett: That’s like 7,000 people.
Zoë Schiffer: Yes.
Leah Feiger: I’ve actually heard people use the word raptured.
Zoë Schiffer: Oh, my gosh.
Leah Feiger: Isn’t that—
Zoë Schiffer: And I wish we had that in the story.
Leah Feiger: I’m so sorry, but raptured into other teams. All of a sudden one day they’ve just disappeared. After this layoff, has Zuckerberg and co proposed a sort of coherent leadership plan or proposal? What happens after this?
Tech
Why the 2026 Hurricane Season Might Not Be That Bad
Atlantic hurricane season is almost upon us, and the early signs indicate it might be less active than usual. But that’s no reason to delete your weather app and ignore the forecast.
The National Oceanic and Atmospheric Administration is predicting eight to 14 named tropical systems, of which three to six will become hurricanes and one to three will be Category 3 or higher.
“What’s driving this forecast is largely an El Niño event,” said NOAA administrator Neil Jacobs.
Characterized by a tongue of hot water stretching across the Pacific, El Niño is likely to emerge this summer. That stretch of warm ocean rearranges weather patterns around the world. In the case of the tropical Atlantic, El Niño stirs up winds that make it hard for hurricanes to spin up. Those that do can sometimes be torn apart by what’s going on in the upper atmosphere. (The opposite is true in the Pacific, and NOAA is predicting a very active season in that ocean basin.)
During the three past super El Niños, accumulated cyclone energy—a metric that factors in storms’ strength and longevity—was well below normal.
That said, El Niño, even an extremely strong one, is only one of many factors that impact hurricane season. Hot local ocean temperatures can help storms form and gain strength, and the Atlantic is currently warmer than normal.
At the same time, Sahara dust can gum up the atmosphere and inhibit storms from forming. It’s also notoriously hard to predict when plumes of it will kick up. That’s what happened last year, when a below-average number of named storms formed despite an active forecast. Despite the lower-than-expected activity, last year still spawned Hurricane Melissa, one of the strongest storms to ever make landfall in the Atlantic basin.
All of which is to say that the seasonal forecast is a handy guide for what to expect, and it’s great for federal and state agencies to preposition supplies and resources. But it’s what happens with individual storms that ultimately matters.
“Even though we’re expecting a below average season in the Atlantic, it’s important to understand it only takes one,” Jacobs said, noting that even in quiet years, Category 5 storms have still made landfall.
The Trump administration has slashed staffing at NOAA and reduced the collection of some data, such as weather balloons, that can impact forecasts. Jacobs touted the value of new observations, including aerial drones that will be deployed operationally for the first time.
NOAA has also ramped up the use of artificial intelligence weather models trained on historical data. During the 2025 hurricane season, the agency tested an experimental hurricane model developed with Google DeepMind. Late last year, it also rolled out a suite of AI weather models to use in operational forecasting, in addition to traditional weather models that use equations to forecast the weather.
The agency says that the AI version of its flagship model provides better prediction of the tracks of tropical cyclones—the generic name for hurricanes—though it lags traditional weather models in predicting their intensity.
Tech
Police op targets VPN service favoured by ransomware gangs | Computer Weekly
A virtual private network (VPN) favoured by cyber criminals to mask data exfiltration, fraud ransomware attacks and other criminality has been dismantled in Operation Saffron, a Franco-Dutch led action supported by Europol and other agencies, including the UK’s National Crime Agency (NCA), and private sector partner Bitdefender.
The First VPN service was heavily used among Russian-speaking threat actors, and according to Europol, was used in “almost every” major cyber investigation it has undertaken in the past few years. Besides obscuring malicious traffic from law enforcement surveillance, First VPN’s operators are also known to have offered services such as anonymised payments and hidden infrastructure.
“For years, cyber criminals saw this VPN service as a gateway to anonymity. They believed it would keep them beyond the reach of law enforcement. This operation proves them wrong. Taking it offline removes a critical layer of protection that criminals depended on to operate, communicate and evade law enforcement,” said Edvardas Šileris, head of the European Cybercrime Centre at Europol.
A spokesperson for Bitdefender added: “We are extremely pleased with the successful takedown of First VPN, and congratulate global law enforcement, and all those involved.
“Operation Saffron exemplifies the power of collaboration between the public and private security sector in dismantling illegal online activities, in this case, a VPN service designed to conceal attacks. It also serves a message to criminals who believe the dark web covers their actions and guarantees their anonymity. If they become the target of an international effort, they can’t hide.”
Operation Saffron marks the first time Bitdefender Labs’ virtual Draco Team unit has worked on a counter-VPN action, having previously been involved in a number of other operations including stings on the Hansa dark web marketplace, 2024’s Operation Endgame targeting botnets, and actions against ransomware gangs including GandCrab and its successor REvil.
Multi-year operation
The takedown operation itself – which took place on 19 and 20 May – saw First VPN’s administrator arrested and interviewed, and their home in Ukraine searched, 33 servers dismantled, and wider infrastructure disrupted. Multiple domain names have been shut down and seized, including 1vpns.com, 1vpns.net, 1vpns.org, and some associated Onion domains.
These actions marked the culmination of a four-and-a-half year investigation dating back to December 2021. During the course of this work, investigators were able to gain access to the First VPN service, obtain a copy its user database, and identify the VPN connections used specifically by cyber criminals.
This trove of intelligence has both exposed individual users linked to cyber criminality, and generated operational leads connected to past cyber attacks and other digital offences.
Indeed, Europol’s coordinating Operational Taskforce (OTF) has already disseminated over 80 intelligence packages worldwide and identified 506 known First VPN users. The EU agency said it has already been able to support 21 other investigations thanks to this work.
Industry reaction
Responding to the takedown, John Watters, CEO of iCounter – a threat intelligence platform, said: “This case demonstrates that cyber crime is ultimately an ecosystem problem, not just a malware problem. The infrastructure layer that supports ransomware and fraud operations has become highly commercialised, with threat actors relying on shared services that promise anonymity, resiliency, and protection from law enforcement scrutiny.
“When investigators successfully penetrate those ecosystems, they gain an opportunity to map relationships, operational dependencies, and repeat offender activity across multiple criminal campaigns simultaneously. The operationalisation of that intelligence is critical because it allows defenders and governments to move beyond reactive incident response and toward proactive disruption of adversary infrastructure.
Watters added: “These services are often some of the limited ways that law enforcement can impact threat actors who are in countries outside their reach. We should expect continued pressure on the enabling services that underpin cybercrime economies globally.”
“Targeting not only individual criminals and groups but also their infrastructure is becoming one of the most vital fronts in the international battle against cyber crime,” said CybaVerse head of penetration testing, Michael Jepson.
“Services like First VPN, alongside similar criminal-friendly VPNs and hosting providers, give threat actors the fundamental scaffolding to launch attacks. These services are often difficult to target because they resist legal complaints and court orders, and typically operate from permissive jurisdictions that rarely cooperate with foreign law enforcement.
“Pursuing individual criminals and groups becomes far harder when their activity is obfuscated and protected by these services,” added Jepson, “[so] shutting down these illicit hosts and VPNs is effective because it disrupts entire networks, and creates a knock-on effect where further criminal groups are disrupted as threat actors have to migrate their operations and reorient in the face of potential exposure.”
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