# Accounting Memo — Wrapped / Receipt Token Scope Analysis

**Entity:** [Entity name]
**Prepared by / date:** [Name], [Date]
**Reviewed by / date:** [Name], [Date]
**Asset assessed:** [Token, underlying asset, custodian/protocol, units, carrying amount]

## 1. Question presented

Whether [token] is within the scope of ASC 350-60 (fair value through net
income), and if not, the applicable accounting framework under current GAAP.

## 2. Scope analysis — ASC 350-60-15-1

| Criterion | Facts | Met? |
|---|---|---|
| (a) Meets the definition of an intangible asset | | [Y/N] |
| (b) Does not provide enforceable rights to underlying goods, services, or other assets | [Describe the redemption right: what is received, from whom, enforceability] | [Y/N] |
| (c) Created or resides on a distributed ledger | | [Y/N] |
| (d) Secured through cryptography | | [Y/N] |
| (e) Fungible | | [Y/N] |
| (f) Not created/issued by the reporting entity or related parties | | [Y/N] |

Interactive version: cryptogaap.com/tools/scope

## 3. Current GAAP conclusion

[For tokens conveying a right to receive another crypto asset, current GAAP
generally places the holding outside ASC 350-60 — document the framework
applied: ASC 350-30 indefinite-lived intangible / look-through / receivable
analogy, and why. Note diversity in practice.]

## 4. Pending FASB scope expansion (tentative — April 15, 2026)

The FASB tentatively decided to expand ASC 350-60 scope to crypto assets
conveying enforceable rights to receive an in-scope crypto asset, with
separate disclosure of significant wrapped-token holdings. Assess:

- Is the underlying asset itself in scope of ASC 350-60? [Y/N — analysis]
- Is the right to receive it enforceable? [Legal form, custodian terms]
- Derecognition for the wrap/unwrap legs remains under FASB deliberation.

**Caution:** tentative decisions do not change current GAAP. Do not
reclassify until a final ASU is effective. Track status:
cryptogaap.com/fasb-tracker

## 5. Conclusion and treatment adopted

[Measurement basis, balance sheet presentation, disclosure plan — including
tagging the position for the expected separate wrapped-token disclosure.]

## 6. Supporting documentation

- [ ] Custodian / protocol redemption terms
- [ ] Legal enforceability assessment
- [ ] Underlying asset scope analysis
- [ ] Auditor discussion notes

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Template: cryptogaap.com/tools/templates — general information, not
professional advice. Verify all citations against the Codification.