According to Compounding Quality, the distinction between IFRS and US GAAP accounting standards significantly affects how companies report and value crypto assets. IFRS often allows fair value measurement for cryptocurrencies, leading to more frequent balance sheet adjustments, while US GAAP generally requires digital assets to be held as intangible assets at cost, with only impairment losses recognized and no upward revaluations (source: Compounding Quality on Twitter, June 20, 2025). For traders, this means that international firms may show higher volatility in reported crypto holdings compared to US-based firms, influencing market transparency, trading sentiment, and cross-border investment decisions. Understanding these differences is critical for crypto traders analyzing financial reports and anticipating market reactions to earnings announcements involving digital assets.