The debate on how the various forms of cryptocurrency should be accounted for continues.
Generally accepted accounting principles (GAAP) consider cryptocurrency to be an intangible asset that is recorded at cost, and impairment of the asset cost must be recorded. This means the value can be reduced on a balance sheet over time.

As the types and uses of cryptocurrencies change, the determination of how to account for them on the accounting ledgers may evolve. The value of digital currency is driven by supply and demand and the market for cryptocurrency is quite volatile resulting in issues of recording book value vs. FMV.

This course explores how to record these assets and appropriately recognize and measure activities of issuance and investment in various types of cryptographic assets. As of early 2022, there is no accounting that addresses cryptographic assets. Accountants look at the existing IFRS and apply a principles-based approach.

This course is a complement to the course “Cryptocurrency 101”. Future courses will further delve into the complexities of the accounting process.

Field of Study: Accounting