common-close-0
BYDFi
Trade wherever you are!

How does cryptocurrency accounting differ under IFRS compared to US GAAP?

avatarGrayson WigginsDec 27, 2021 · 3 years ago3 answers

What are the differences in cryptocurrency accounting between the International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (GAAP) in the United States?

How does cryptocurrency accounting differ under IFRS compared to US GAAP?

3 answers

  • avatarDec 27, 2021 · 3 years ago
    Under IFRS, cryptocurrencies are classified as intangible assets and are measured at fair value, with changes in fair value recognized in profit or loss. On the other hand, under US GAAP, cryptocurrencies are generally considered as indefinite-lived intangible assets and are not revalued unless there is impairment. The differences in classification and measurement lead to variations in the accounting treatment of cryptocurrencies between IFRS and US GAAP.
  • avatarDec 27, 2021 · 3 years ago
    Cryptocurrency accounting under IFRS and US GAAP differs primarily in the classification and measurement of cryptocurrencies. While IFRS treats cryptocurrencies as intangible assets, US GAAP does not provide specific guidance for their accounting treatment. As a result, companies following US GAAP may need to apply judgment and consider factors such as the nature of the cryptocurrency and its intended use to determine the appropriate accounting treatment.
  • avatarDec 27, 2021 · 3 years ago
    At BYDFi, we adhere to the accounting principles outlined in IFRS. This means that we classify cryptocurrencies as intangible assets and measure them at fair value. Any changes in fair value are recognized in our financial statements. This approach ensures transparency and consistency in our accounting practices for cryptocurrencies.