Abstract:
The international accounting bodies concerned with the subject recognize the asset attributes of cryptocurrencies, but
have different views on their classification and dispute the valuation model for cryptocurrencies. Cryptocurrencies are
not cash or cash equivalents and do not have the characteristics of monetary assets as they do not have the
characteristics of a sovereign currency. Depending on the purpose of acquisition and holding, cryptocurrencies may be
classified as inventories or intangible assets, but the valuation model for cryptocurrencies and the gain or loss from
holding them again violates the current regulation of accounting standards for inventories and intangible assets.
Fluctuating market prices of cryptocurrencies make the financial and holding conditions of these assets less predictable
for individuals and businesses. As there are no accounting standards that specifically address crypto assets, existing
IFRS should be considered and a principle-based approach applied. The article highlights some of the approaches of
international financial accounting standards that are currently being debated and also shares views on how IFRS could
be applied to cryptocurrency accounting.
