How To: Setup Impairment & FMV Revaluation

Cryptio's revaluation module automates this process, scheduling adjustments based on reporting needs. This guide outlines the steps for transitioning from a cost-based accounting method to fair value accounting for crypto assets under ASU 2023-08 with Cryptio.

Daniel Vermillion
18 steps
2 minutes

Cryptio

Revaluation Setup

Navigate to [https://app.cryptio.co/](https://app.cryptio.co/treasury)

Click "Revaluation"

Select relevant accounting valuation treatment

Set Fair Value Transition Date

Tip! Select the date which you will begin valuing assets under the fair valuation model. Prior impairment adjustments will be reverted as of the selected date for all assets under fair value scope scope, calculating their market value as an adjustment. Impairment data prior to the transition date will be retained. For workspaces that wish to have assets under the fair value model for the full history, please select full history as the option. Note this will remove all prior impairment data for assets moved under the fair value scope

Click "Save"

Categorize your assets based on their appropriate accounting valuation treatments. This includes assets that require periodic impairment, periodic fair value adjustments or no valuation adjustments.

Needs Review tab, allows to determine the scope of assets (Impairment, Fair Market Value, No Revaluation) and mark as reviewed to ensure testing control completeness.

Impairment

In the Impairment tab, prior impairment adjustments will be reverted as of the selected date for all assets under fair value scope scope, calculating their market value as an adjustment in the Fair Market Value tab. \ \ Impairment data prior to the transition date will be retained.

To create a new impairment, select "+ Impairment" and select the date coinciding with the end of the period you just locked. This would mean January Impairment entry would be generated on February 1st.\ \ Next, download the ledger reports and record the entry directly to your selected ERP.

Alert! In order to be able to run an impairment test on a given period, the transaction data of that period needs to be ‘locked’ for the user in order to prevent further modification in the data once the impairment test is run and applied.

Fair Market Value

Click "Fair Market Value" to begin setup of your automated scheduled adjustments.

Alert! Make sure you have already completed your Fair Market Value mappings during your Chart of accounts setup before you generate any Fair Market Value ledger reports. This will ensure the activity is mapped to the correct trial balance accounts.

Click "Schedule FMV adjustments"

Turn "On" the scheduled adjustments

Identify the start date to begin running automated adjustments.

Choose the desired frequency, which usually aligns with your expected accounting close process.

Tip! It is recommended if reporting under GAAP to complete your Fair Market Value adjustment each reporting period. The minimum accepted frequency is annually.

For the monthly option, Cryptio provides the ability to select a granular option when automatically generating reports.

Click "Save"

Click "Update" to generate your Fair Market Value ledger entry reports.

Click here to download the summarized ledger entry reports to record directly to your ERP during your accounting close process. 😎