NFTs are no longer a side experiment or a niche marketing play. In 2026, they are firmly embedded into business models such as gaming, media, loyalty, IP licensing, and even enterprise-based access control. Therefore, it’s no longer “figure it out later,” but something that CFOs, controllers, and auditors expect to be handled with the same rigor as any other digital asset.
This guide explains how NFT accounting works in 2026, including what NFTs represent from an accounting standpoint, how they’re classified and valued, how revenue and royalties are recognized, and what auditors expect to see.
What NFTs Represent From an Accounting and Legal Perspective
Businesses still make the common assumption that owning NFTs automatically means owning the underlying intellectual property. In most cases, that isn’t true. An NFT usually represents proof of ownership, access, or entitlement recorded on-chain, not a transfer of IP rights unless the contract explicitly says so.
For accounting purposes, this distinction matters far more than the branding or narrative around the NFT. What ends up on the balance sheet depends on the essence of the arrangement. Are you holding the NFT as inventory for resale? Does it grant ongoing economic benefits, such as access to services or licensing rights? Or is it simply a transferable digital collectible with no continuing obligation or utility?
Accounting standards look past marketing language and focus on control and future economic benefits. Before you classify or value any NFT, your finance team needs a clear answer to one question: what rights does this token actually convey?
How NFTs Are Classified on the Balance Sheet in 2026
NFTs generally fall into one of two balance-sheet categories, depending on why the business holds them, not on how the token is designed.
When an NFT is held for long-term use, strategic value, or ongoing access rights, it is typically treated as an intangible asset. Under IFRS, IAS 38 applies in most of these cases. This is common for companies that hold NFTs for brand positioning, memberships, licenses, or protocol access rather than for near-term resale.
The treatment changes when NFTs are created or acquired specifically for resale. Marketplaces, studios, game developers, and creators often fall into this category. In those situations, NFTs may qualify as inventory, and accounting follows inventory measurement and revenue recognition rules.
The important point is intent. Two companies can hold the same NFT and account for it differently depending on how it fits their business models. Accounting doesn’t care about the technology; it focuses on how the asset is used and how economic value is expected to flow.
Accounting for NFT Minting, Creation, and Acquisition Costs
NFT-related costs rarely arrive neatly packaged. They’re spread across wallets, chains, and platforms, which is exactly why accounting for them often goes wrong. Minting gas fees, marketplace listing charges, smart contract deployment costs, and even creator royalties paid on acquisition can all be part of the same NFT lifecycle. However, they don’t always get captured together.
From an accounting standpoint, both IFRS and US GAAP focus on whether a cost is directly attributable to bringing the NFT into existence or preparing it for its intended use or sale. When incurred, these costs are generally capitalized as part of the NFT’s initial carrying value. By contrast, marketing spend, promotional activity, and other indirect costs are expensed as incurred, even if they relate to a successful NFT launch.
Internally generated NFTs require even more care. Accounting standards are conservative in capitalizing internally developed intangible assets. Unless strict recognition criteria are met, many creation-related costs may need to flow through the P&L rather than to the balance sheet. This is where judgment, documentation, and consistency matter—because once auditors review your NFT activity, they’ll expect a clear rationale for every capitalization decision you’ve made.
Revenue Recognition for NFT Sales and Primary Issuance
Revenue from NFT sales depends on one key question: when does the buyer gain control? When an NFT is sold independently, revenue recognition happens at the point of transfer. But many NFTs come with ongoing obligations such as access to platforms, future upgrades, or services.
But what if an NFT has ongoing obligations, such as access to certain platforms or software upgrades? Revenue must then be deferred and recognized over time with IFRS 15 or ASC 606. Membership NFTs, subscription-linked NFTs, or in-game assets are just a few of these instances. Getting this wrong will result in over-reported revenue and create problems during an audit.
Accounting for NFT Royalties and Secondary Market Income
Royalty income remains one of the trickiest areas of NFT accounting. While on-chain enforcement has weakened, royalties still exist through marketplaces, contracts, or off-chain agreements.
For creators, royalty income is typically recognized when earned and measurable. For platforms, only the platform fee portion qualifies as revenue; creator royalties are usually recorded as liabilities.
Because royalty volumes can fluctuate and depend on secondary market activity, finance teams must carefully assess whether royalties represent variable consideration and how reliably they can be estimated.
How to Value NFTs for Financial Reporting
Valuing NFTs isn’t always straightforward. Some collections have active markets, but many NFTs trade infrequently, making pricing judgment-heavy. Common approaches include using observable market prices when available, adjusting floor-based ones for traits or liquidity, or applying model-based valuations for illiquid assets.
Under IFRS, the fair value hierarchy applies—most fall into Level 2 or Level 3, which require clear methodology, documentation, and consistent application. In practice, auditors care more about how you value NFTs than the exact number itself.
Impairment Rules for NFT Holdings
NFT impairment remains a major area of concern. Sharp drops in trading volume, delistings, or market sentiment can all trigger impairment indicators.
Under IFRS, companies must assess impairment when indicators arise and may reverse impairments if values recover (subject to limits). US GAAP is more restrictive and generally does not permit upward reversals of recognized impairments.
Regular monitoring and documented impairment triggers are essential, especially for treasury-held NFTs.
Tax Treatment of NFTs for Businesses in 2026
Tax regulations for NFTs vary by country. However, certain general principles apply. Selling an NFT will generate tax revenue, while owning an NFT will generate capital gains or capital losses if it is sold.
VAT or GST may also apply if an NFT grants access to certain services or digital goods. These are just some of the tax regulations that apply to owning or selling an NFT. Because tax regulations and revenue recognition may not always align, it’s important to track all relevant information.
Common NFT Accounting Mistakes Companies Still Make
Over the years, many businesses have repeated the same avoidable NFT accounting errors. One frequent issue is treating NFTs like fungible tokens. NFTs are inherently unique, yet some teams apply averaging or batch valuation methods that ignore individual traits, liquidity differences, or usage rights. This almost always breaks down under audit review.
Another problem is delaying impairment assessments until year-end. NFT values can move sharply and unevenly. Waiting until the reporting period closes increases the risk of material misstatements—especially for thinly traded assets.
Inconsistent valuation sources are also common. Switching between marketplaces, floor
prices, or models without a documented policy, make results difficult to defend and erode comparability across periods.
Many teams struggle with wallet reconciliation. NFT activity often spans multiple wallets, chains, and marketplaces, and without proper reconciliation, balances on-chain don’t reliably tie back to the ledger.
Finally, misclassifying royalty flows continues to cause confusion. Creator royalties and secondary-sale fees are frequently recorded inconsistently without regard to the underlying contractual terms.
How KoinX Books Supports NFT Accounting at Scale
KoinX Books is designed for exactly these challenges. It integrates wallets and marketplaces, tracks NFT cost basis, automates fair value updates, flags impairment indicators, and generates IFRS- and US GAAP-aligned journal entries.
Instead of stitching together spreadsheets, finance teams get a single system that supports NFTs alongside other digital assets. This makes audits, reporting, and treasury reviews far more predictable.
Conclusion
NFTs are no longer an experimental asset class. In 2026, they need disciplined accounting treatment, consistent valuation, and transparent disclosure. Companies that invest now in the right systems and policies will avoid last-minute scrambles and surprises during audits. With the right systems in place, accounting for NFTs is manageable, scalable, and defensible.
Frequently Asked Questions
Are NFTs Treated As Intangible Assets Or Inventory?
Whether NFTs are treated as intangible assets or inventory depends on how they are used. NFTs held for long-term ownership and strategic purposes are treated as intangible assets, while NFTs utilized for resale are treated as inventory.
How Do You Value NFTs With Low Trading Volume?
NFTs with low trading volumes are evaluated using modeling techniques, including comparable sales, floor price adjustments, and discounted cash flow analyses. Regardless of the method utilized, consistency is key.
When Does An NFT Sale Count As Revenue?
NFTs are considered revenue if the transfer of control is complete and all performance obligations are fulfilled, as stated in IFRS 15 and ASC 606.
Are NFT Royalties Taxable Income?
NFT royalties are taxable income, but the treatment varies by jurisdiction, business structure, and the nature of the royalty arrangement.
How Often Should NFT Holdings Be Revalued?
NFTs should be revalued as often as fair value data is available and if there are signs of impairment. High volatility or market changes may require more frequent reassessment.