A great podcast from PwC around cryptocurrencies and how best to handle them from an accountant’s perspective. The thousands of digital assets can be considered in terms of purpose. These purposes could be voting rights or equity, sources of investment such as Bitcoin, or ownership of commercial products (NFTs). Classifying them in terms of cash, financial assets, and intangible assets can help narrow the scope of the accountant’s work. These classifiers can help determine which accounting model will best apply, and while digital assets are not typically considered cash, there are increasing developments complicating this process: Bitcoin becoming legal tender in El Salvador; China carrying out 2 million Yuan worth of cryptocurrency payments during the Olympics with its digital currency e-CNY; and Ukraine accepting crypto as sorely-needed donations. This space is quickly becoming a maze for the accountant, so how have you navigated it thus far, and how will you do so in future?
Posted by Accountants' Club at 2022-04-19 14:21:26 UTC