At TRES we work every day to simplify every step of your web3 accounting journey.
With the introduction of our new Cost Basis Revaluation feature, we’re taking another significant step forward—streamlining your accounting processes while ensuring compliance with global standards such as GAAP and IFRS.
Cost-Basis Revaluation in Practice
Cost Basis Revaluation is the process through which businesses reassess the value of their crypto holdings to align with accounting standards, ensuring accurate reporting and compliance.
Under GAAP, revaluation is mandatory but limited to impairment testing. Crypto assets, treated as indefinite-lived intangible assets, must undergo regular impairment testing (often quarterly for public companies). If the market value drops below the carrying value, an impairment loss must be recognized based on the lowest observable market price. However, GAAP does not allow upward revaluation—even if market prices recover, the written-down value cannot be adjusted upwards unless the asset is sold.
Under IFRS, the revaluation approach depends on the accounting model chosen:
• Cost Model (Default): Similar to GAAP, upward revaluation is not allowed, but impairment testing is mandatory if there are indicators of value decline.
• Revaluation Model (Optional): If an active market exists, companies can opt for this model, allowing both upward and downward revaluations to reflect fair market value. Regular revaluation is required under this model.
IFRS offers greater flexibility compared to GAAP, but companies must thoroughly document and justify their choice of accounting model, ensuring compliance and transparency in their financial reporting.
How Does Revaluation Work at TRES?
We have designed our revaluation feature with flexibility in mind, ensuring it adapts seamlessly to any accounting standard.
- Our solution empowers clients to select a specific asset at a chosen point in time, enabling precise pricing for cost-basis adjustments.
- Once the asset and time are selected, the asset’s repricing is processed.
- The updated valuation is then applied to future gains and losses upon the sale of that asset, providing clarity, compliance, and ease for financial reporting.
This streamlined process ensures that your accounting remains accurate and compliant with regulatory standards, no matter how complex your asset portfolio.
Simplified Compliance, Streamlined Audits
At TRES, we empower businesses worldwide to maintain compliance with ease. With unparalleled data accuracy and a streamlined FinOps experience, we make every step of the process effortless. Join TRES today and experience compliance made simple.
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