At present, there is no specific International Financial Reporting Standard (IFRS) that specifically applies to cryptocurrency. However, there are certain IFRS standards that can be applied to the accounting treatment of cryptocurrencies depending on their specific characteristics.
If a company holds cryptocurrency as an investment, it can be classified as a financial asset and accounted for under IFRS 9 “Financial Instruments”. Under this standard, the company would need to assess whether the cryptocurrency meets the definition of a financial asset and whether it should be measured at fair value through profit or loss, or at fair value through other comprehensive income.
If a company holds cryptocurrency for use in its operations, it may be accounted for as inventory under IAS 2 “Inventories”. Under this standard, the company would need to determine the cost of the inventory, including any direct costs of acquisition, and compare it to the net realizable value to determine if there has been an impairment loss.
Additionally, there are certain IFRS standards that are relevant to the accounting treatment of transactions involving cryptocurrency, such as IFRS 15 “Revenue from Contracts with Customers” and IFRS 16 “Leases”.
It is important to note that the accounting treatment of cryptocurrency under IFRS may vary depending on the specific circumstances and characteristics of the cryptocurrency, and companies should seek professional advice when determining the appropriate accounting treatment.
For more details on Accounting of Crypto Currency Assets