Kostyuchenko Valentina, Doctor of Economics, Professor of the Accounting and Taxation Department, Kyiv National University of Trade and Economics, Kyiv, Ukraine

ORCID ID: 0000-0002-3121-842X
e-mail: valentynak1098@gmail.com

Malinovskaya Alyona, Master’s Degree, Faculty of Finance and Accounting, Kyiv National University of Trade and Economics, Kyiv, Ukraine

ORCID ID: 0000-0003-4346-2101
e-mail: malinovskayaaliona@ukr.net

Mamonova Anastasiia, Master’s Degree, Faculty of Finance and Accounting, Kyiv National University of Trade and Economics, Kyiv, Ukraine

ORCID ID: 0000-0001-5837-6404
e-mail: linnasvik@ukr.net

Cryptocurrencies Accounting under International Standards

Abstract. Introduction. The use of cryptocurrencies is actively spreading in a lot of countries around the world on the basis of economic and technological progressive development. Cryptocurrency attracts investors to launch the initial coin offering (ISO). Cryptocurrency has important features: it is not controlled by the state, does not require the participation of a third party in the calculations. Cryptocurrency transactions are confidential. However, the lack of legal regulation and a unified approach to determining the economic essence of cryptocurrency makes it difficult to reflect in the accounting.

Purpose. The purpose of the article is to deepen of the theoretical foundations and formulating of the proposals for the cryptocurrency presentation in the accounting according to International Financial Reporting Standards.

Results. The results of the study showed that cryptocurrencies are considered as a type of digital currency that uses cryptography to ensure security and protection against counterfeiting. Cryptocurrency transactions are spreading rapidly around the world. The number of cryptocurrency users is growing rapidly. National and regional authorities around the world are trying to establish certain legal norms and determine its economic essence for further monitoring and taxation. Regulators use different terms to denote cryptocurrencies in regulatory statements and publications. For example, virtual currency, digital currency, digital asset, e-currency, virtual asset and others. The approaches of different countries to the regulation and taxation of cryptocurrency transactions have been analyzed and it has been found that governments and regulators of a significant number of countries respond positively to the emergence and use of cryptocurrency. However, there is no single definition of the economic essence of cryptocurrency. The identification of the cryptocurrency was performed on the IFRS Conceptual Framework basis. It was found that holding cryptocurrency is defined by the IASB as an intangible asset. If the owner of the cryptocurrency intends to sell the cryptocurrency, it should be transferred to inventory.

Conclusions. The investigation contributed to the deepening of the theoretical foundations of cryptocurrency accounting under IFRS. The proposals were justified in relation to the use of sub-accounts 126 “Holding cryptocurrency” and 29 “Cryptocurrency” to reflect in the national accounting of cryptocurrencies transactions.

Keywords: cryptocurrency; framework; International Financial Reporting Standards; recognizing, valuation; intangible assets; inventory; accounting.

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