How do companies account for cryptocurrency transactions?

[ankita]

With crypto becoming more common, I’m curious how businesses record cryptocurrency transactions.

 

[niyati]

Companies account for cryptocurrency transactions by recording them as assets on their balance sheets. They track the purchase cost, fair market value, and any gains or losses during sales or exchanges, following relevant accounting standards like IFRS or GAAP to ensure accurate financial reporting and transparency.

 

[riya]

In the existing accounting system, companies are recognizing cryptocurrency as intangible asset. They keep crypto or other in-kind assets at cost of purchase and check impairment in case value decreases, but will include gain only on sale. On payments, revenue and crypto holding entries are made. Good tracking leads to financial reporting and compliance.

 

[jainnorton]

Companies account for crypto as intangible assets (cost or fair value) under IAS 38 or as inventory if traded. Gains/losses are recorded upon sale. Disclosures include volatility risks and accounting policies.

 

[robertwilliam]

Currently, most companies account for crypto as an intangible asset with an indefinite life. Cryptocurrencies are recognized at their cost basis on balance sheets. However, under GAAP rules, only unrealized losses, not gains, are recognized for intangible assets.

 

[Jarwish]

Companies record cryptocurrency transactions based on accounting standards, typically as intangible assets at cost, revalued if impairment occurs, recognizing gains or losses on sale or exchange, while ensuring proper disclosure of holdings and transaction details in financial statements.