The absence of accounting guidance for cryptocurrencies is causing some concern for reporters as various standards boards review the accounting treatments, but the global standard setter remains on the sidelines. Sarah Perrin ACA asks leading accounting experts about how they deal with crypto accounting
In December 2017 the value of a Bitcoin – the highest profile cryptocurrency – reached just under $19,500, although it has since fallen to around $9,300 (£6,938) (1 May 2018). According to industry website CoinMarketCap, the market value of all cryptocurrencies (as widely defined) at 1 May 2018 was just over US$428bn – although it exceeded $800bn in early January. Alongside Bitcoin, major players include Ether, Ripple and Bitcoin Cash.
The proliferation of cryptocurrencies and their increasing recognition by mainstream companies (such as Microsoft and PayPal – albeit through an intermediary payment-processor) has been accompanied by consideration of the accounting repercussions. There is no specific International Financial Reporting Standard (IFRS) for cryptocurrencies. However, the Accounting Standards Board of Japan in March 2018 issued its own standard on accounting for virtual currencies.
