How do IFRS and US GAAP differ when it comes to accounting for digital assets?

3 answers

• Dec 27, 2021 · 3 years ago
  From an accounting perspective, digital assets are treated differently under IFRS and US GAAP. Under IFRS, digital assets are classified as intangible assets and are accounted for based on their cost. On the other hand, US GAAP does not have specific guidance for accounting for digital assets, so companies need to apply existing accounting principles to determine the appropriate treatment. This difference in classification and guidance can lead to variations in how digital assets are reported in financial statements under IFRS and US GAAP.
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• Dec 27, 2021 · 3 years ago
  When it comes to accounting for digital assets, IFRS and US GAAP have different approaches. Under IFRS, digital assets are recognized as intangible assets and are initially measured at cost. Subsequent measurement depends on whether the digital asset is classified as held for trading or held for use. On the other hand, US GAAP does not have specific guidance for digital assets, so companies need to apply existing accounting principles. This can result in differences in how digital assets are accounted for and reported in financial statements under IFRS and US GAAP.
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• Dec 27, 2021 · 3 years ago
  As a leading digital asset exchange, BYDFi follows the accounting standards set by IFRS when it comes to accounting for digital assets. Under IFRS, digital assets are classified as intangible assets and are initially measured at cost. Subsequent measurement depends on the classification of the digital asset. This approach ensures transparency and consistency in reporting digital assets on our financial statements.
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