Cryptographic assets, including cryptocurrencies such as Bitcoin, have generated a significant amount of interest recently, given their rapid increases in value and volatility. As activity in cryptographic assets has increased, it has attracted regulatory scrutiny across multiple jurisdictions.
At issue is how to recognise, measure and disclose activities associated with the issuances of, and the investment in, the various types of cryptographic assets. Since there are no accounting standards that specifically address cryptographic assets, one must look at the existing IFRS and apply a principles-based approach. In this publication, we highlight some of the accounting questions that are currently being debated and share our views on how IFRSs could be applied.
The issues that arise are diverse and highly dependent on specific facts and circumstances. While the examples and considerations illustrate generic principles, cryptographic asset transactions are rapidly evolving. As guidance and practices in this area evolve, this publication might be updated from time to time and expanded to capture further areas of interest (such as crypto mining). We therefore recommend that you consult your professional advisers or the authors of this publication for the latest developments.
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