Accounting for Cryptocurrencies

One of the main problems of the accounting and investors of the ICO / STO / IEO project is putting the cryptocurrency on the company’s balance sheet.

At present, neither the International Accounting Standards Board (IASB) nor the Financial Accounting Standards Board (FASB) have taken a single position on this issue and, accordingly, have not developed appropriate recommendations for companies using virtual currencies.

The main complexity in this case is that the order of statement of cryptocurrency on balance of the company directly depends on its nature and the legal status and a way of use by the company (acquisition, settling with contractors, etc.).

Today, according to International Financial Reporting Standards, the Cryptocurrency is offered to be referred to one of categories:

• Money or cash equivalent;
• Financial instruments;
• Intangible assets.

Based on the nature of cryptocurrency and the capabilities of the company, Legal Kornet specialists:

1. Determine the nature of cryptocurrency;
2. To assist in the preparation of financial statements, taking into account the cryptocurrency;
3. Help in Statement of cryptocurrency on the company’s balance sheet;
4. Help in resolving disputes.