Accounting for cryptocurrency according to International Financial Reporting Standards

Authors: Al Hadzh K.A.
Published in issue: #1(54)/2021
DOI: 10.18698/2541-8009-2021-1-669
Category: Economics and Production Organization
Keywords: cryptocurrency, International Financial Reporting Standards, financial instruments, intangible assets, enterprise business model, accounting, cash
Published: 17.02.2021

The article topic is relevant because the accounting procedure for transactions with cryptocurrencies is not regulated in the International Financial Reporting Standards (IFRS). The analysis of accounting for cryptocurrency according to IFRS has been carried out. The paper also clarifies the aspects in which cryptocurrencies cannot be considered equivalent to cash or currencies as defined in IFRS 7 Cash Flow Statement and IFRS 32 Financial Instruments: Presentation. Author investigated the question of whether cryptocurrencies should be accounted for as financial assets at fair value through profit or loss in accordance with IFRS 9 Financial Instruments. It is shown whether cryptocurrencies meet the definition of intangible assets in IFRS 38 Intangible Assets and the connection with IAS 21 The Effects of Changes in Foreign Exchange Rates is clarified. It is considered in what circumstances and depending on what business model of the organization it is advisable to take into account cryptocurrencies in accordance with the inventory of IFRS 2 Inventories.

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