PROBLEMS ARISING IN THE ACCOUNTING OF CRYPTOCURRENCIES
The study provides detailed information about the cryptocurrency market as an IFRS object and indicates the methods of their accounting and their features. Data on the change in the total market capitalization of cryptocurrencies are shown, and the reasons for which they went into decline are revea...
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| Format: | Article |
| Language: | English |
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FINTECH Alliance LLC
2023-06-01
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| Series: | Фінансово-кредитна діяльність: проблеми теорії та практики |
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| Online Access: | https://fkd.net.ua/index.php/fkd/article/view/4046 |
| _version_ | 1827077057649049600 |
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| author | Sultan Niftaliyev |
| author_facet | Sultan Niftaliyev |
| author_sort | Sultan Niftaliyev |
| collection | DOAJ |
| description |
The study provides detailed information about the cryptocurrency market as an IFRS object and indicates the methods of their accounting and their features. Data on the change in the total market capitalization of cryptocurrencies are shown, and the reasons for which they went into decline are revealed. Companies that may be interested in accounting for cryptocurrencies under IFRS are considered, as well as the official guidance of the IASB on the issue of accounting and reporting of cryptocurrencies, issued several years ago, is analyzed. Two standards IAS 38 "Intangible Assets" and IAS 2 "Inventories" are analyzed and the reasons why for which the company's cryptocurrency is mainly accounted for either as part of intangible assets or as part of inventories. The foreign experience of some companies that reflect the cryptocurrency according to IFRS is studied, as well as Azerbaijan's practice in this area is considered. Accounting standards have not yet been fully developed, as cryptocurrency has different characteristics from traditional financial assets. Therefore, businesses may experience uncertainty regarding the accounting of cryptocurrency. It is important for businesses to maintain proper accounting records regarding cryptocurrency. These records help businesses meet their tax obligations related to the purchase, sale and exchange of cryptocurrency. However, it can be difficult to find staff with adequate knowledge of accounting and recording cryptocurrency.
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| first_indexed | 2024-03-12T02:53:17Z |
| format | Article |
| id | doaj.art-881ff1b8d83f418a8ecbea5de4adf99e |
| institution | Directory Open Access Journal |
| issn | 2306-4994 2310-8770 |
| language | English |
| last_indexed | 2025-03-20T02:07:43Z |
| publishDate | 2023-06-01 |
| publisher | FINTECH Alliance LLC |
| record_format | Article |
| series | Фінансово-кредитна діяльність: проблеми теорії та практики |
| spelling | doaj.art-881ff1b8d83f418a8ecbea5de4adf99e2024-10-03T09:08:03ZengFINTECH Alliance LLCФінансово-кредитна діяльність: проблеми теорії та практики2306-49942310-87702023-06-0135010.55643/fcaptp.3.50.2023.4046PROBLEMS ARISING IN THE ACCOUNTING OF CRYPTOCURRENCIESSultan Niftaliyev0PhD Student, Azerbaijan State University of Economics (UNEC), Lead Analyst of the Underwriting of SME and Corporate Loans Department, Kapital Bank ASC, Azerbaijan, Baku The study provides detailed information about the cryptocurrency market as an IFRS object and indicates the methods of their accounting and their features. Data on the change in the total market capitalization of cryptocurrencies are shown, and the reasons for which they went into decline are revealed. Companies that may be interested in accounting for cryptocurrencies under IFRS are considered, as well as the official guidance of the IASB on the issue of accounting and reporting of cryptocurrencies, issued several years ago, is analyzed. Two standards IAS 38 "Intangible Assets" and IAS 2 "Inventories" are analyzed and the reasons why for which the company's cryptocurrency is mainly accounted for either as part of intangible assets or as part of inventories. The foreign experience of some companies that reflect the cryptocurrency according to IFRS is studied, as well as Azerbaijan's practice in this area is considered. Accounting standards have not yet been fully developed, as cryptocurrency has different characteristics from traditional financial assets. Therefore, businesses may experience uncertainty regarding the accounting of cryptocurrency. It is important for businesses to maintain proper accounting records regarding cryptocurrency. These records help businesses meet their tax obligations related to the purchase, sale and exchange of cryptocurrency. However, it can be difficult to find staff with adequate knowledge of accounting and recording cryptocurrency. https://fkd.net.ua/index.php/fkd/article/view/4046cryptocurrencyIFRSintangible assetreservesIASBaccounting |
| spellingShingle | Sultan Niftaliyev PROBLEMS ARISING IN THE ACCOUNTING OF CRYPTOCURRENCIES Фінансово-кредитна діяльність: проблеми теорії та практики cryptocurrency IFRS intangible asset reserves IASB accounting |
| title | PROBLEMS ARISING IN THE ACCOUNTING OF CRYPTOCURRENCIES |
| title_full | PROBLEMS ARISING IN THE ACCOUNTING OF CRYPTOCURRENCIES |
| title_fullStr | PROBLEMS ARISING IN THE ACCOUNTING OF CRYPTOCURRENCIES |
| title_full_unstemmed | PROBLEMS ARISING IN THE ACCOUNTING OF CRYPTOCURRENCIES |
| title_short | PROBLEMS ARISING IN THE ACCOUNTING OF CRYPTOCURRENCIES |
| title_sort | problems arising in the accounting of cryptocurrencies |
| topic | cryptocurrency IFRS intangible asset reserves IASB accounting |
| url | https://fkd.net.ua/index.php/fkd/article/view/4046 |
| work_keys_str_mv | AT sultanniftaliyev problemsarisingintheaccountingofcryptocurrencies |