Chartered Professional Accountants of Canada (CPA Canada) has published an introduction to accounting for cryptocurrencies under IFRS.
The paper notes that concerns have been raised that the current application of IFRSs, particularly the application of IAS 38Intangible Assets and the measurement of cryptocurrencies at cost, is not reflective of economic substance and does not provide relevant information to users of financial statements.
Blockchain & cryptocurrency: What accountants need to know
It therefore analyses the problem in five sections:
- a brief overview explaining what cryptocurrencies are;
- a discussion of possible approaches to accounting for cryptocurrencies under existing IFRS;
- an update on accounting standard-setting activity related to cryptocurrencies;
- a brief summary of the tax implications of transactions involving cryptocurrencies; and
- supplemental guidance on determining fair value for cryptocurrencies.
The authors of the guide encourage accounting standards-setters to undertake research in this area to better understand and evaluate the potential impacts of cryptocurrencies and to ensure the accounting for cryptocurrencies is relevant and useful.
Please click to access the publication on the CPA Canada website.