Fair Market Value
- For tax purposes, the value of crypto is established at the time the payment becomes fixed and determinable. That may correlate with the time the crypto is received rather than when the contract is entered. For tax, as is typically the case for barter transactions, the company must establish the readily ascertainable fair market value of the asset at the time of receipt. That value is typically arrived at by using a block explorer or value aggregator. (Deloitte)
- The company must record the time and value of the crypto at the time of receipt or when the company has dominion and control. (Deloitte)
- When the company agrees to receive or accept consideration from a customer that is not cash, the value of that noncash consideration is determined at the contract’s inception. (Deloitte)
- Consequently, the price of the good or service that drives the recorded revenue is determined up front based on the value of the crypto. Subsequent changes in the value of the crypto do not alter the amount ultimately recognized by the company as revenue. That’s the case regardless of the timing of the delivery of the underlying good or service to the customer, all in accordance with the terms of the contract or receipt of the crypto. (Deloitte)
Fair Market Value
- For tax purposes, the value of crypto is established at the time the payment becomes fixed and determinable. That may correlate with the time the crypto is received rather than when the contract is entered. For tax, as is typically the case for barter transactions, the company must establish the readily ascertainable fair market value of the asset at the time of receipt. That value is typically arrived at by using a block explorer or value aggregator. (Deloitte)
- The company must record the time and value of the crypto at the time of receipt or when the company has dominion and control. (Deloitte)
- When the company agrees to receive or accept consideration from a customer that is not cash, the value of that noncash consideration is determined at the contract’s inception. (Deloitte)
- Consequently, the price of the good or service that drives the recorded revenue is determined up front based on the value of the crypto. Subsequent changes in the value of the crypto do not alter the amount ultimately recognized by the company as revenue. That’s the case regardless of the timing of the delivery of the underlying good or service to the customer, all in accordance with the terms of the contract or receipt of the crypto. (Deloitte)
