Standards-anchored to primary IFRS and FASB text. Worked figures are illustrative. Not accounting advice.
TCTokenCapitalisation
Measure phase

The ASU 2025-06 probable-to-complete threshold

Measure, US GAAP
ASU 2025-06 removes the ASC 350-40 project-stage bright lines and instead begins capitalisation of internal-use software costs once management has authorised the project and it is probable the project will be completed and the software used as intended ASU 2025-06. For token spend this shifts the start point from a stage label to a judgement about completion.

What the threshold is

Under the amended ASC 350-40, an entity begins capitalising internal-use software costs when two things hold together: management has authorised and committed to funding the project, and it is probable the project will be completed and the software will be used to perform its intended function ASU 2025-06. This single threshold replaces the earlier sequence of preliminary, application-development and post-implementation stages.

How it changes the start point

The old model keyed capitalisation to a project stage; the new model keys it to a probability judgement about completion. The FASB introduced the change in part because iterative and agile development did not map cleanly onto discrete stages ASC 350-40. AI and token-driven builds are strongly iterative, so the stage model fit them poorly and the threshold fits them better.

What it means for token spend

Under the threshold, development-phase token spend on an authorised project that is probable to complete is capitalisable from that point, and the phase marker in the token ledger becomes the evidence that spend was incurred after the threshold was met. Spend before authorisation, and spend on projects not probable to complete, is expensed. The measurement mechanics, tagging, metering and the bridge, are unchanged; only the start point moves.

Effective date and adoption

The effective date and any early-adoption provisions are set by the FASB in the ASU itself; a preparer should confirm the applicable effective date and transition method for its own reporting entity against the standard rather than assume a date here ASU 2025-06.