Accounting for Cryptocurrencies based on IFRS

Cryptocurrency is a digital “currency” designed to function as a medium of exchange. The awareness for cryptocurrency is growing by the day and thus many people and businesses now hold and create these cryptocurrency.

Two things we need to know:

1. Cryptocurrency held for trading

2. Cryptocurrency no held for trading

1. Cryptocurrency held for trading occurs when one is holding cryptocurrency for sale in the ordinary course of business, You might need to apply IAS 2 Inventories.

If your business is to act as a broker-trader of cryptocurrency, then you should apply IAS 2, more specifically IAS 2.3b for commodity brokers and traders.

2. Cryptocurrency not held for trading occurs when one is holding cryptocurrency for long time in their statement of financial position. You might need to apply IAS 38.