What are the differences between US GAAP and IFRS in the context of cryptocurrency?

3 answers

• Nov 23, 2021 · 3 years ago
  From a professional standpoint, one major difference between US GAAP and IFRS in the context of cryptocurrency is the treatment of initial coin offerings (ICOs). Under US GAAP, ICOs are generally considered to be revenue events, while under IFRS, they are typically classified as liabilities. This difference in classification can have a significant impact on the financial statements of companies involved in ICOs.
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• Nov 23, 2021 · 3 years ago
  In simpler terms, US GAAP and IFRS have different rules for how cryptocurrencies are recognized and measured. US GAAP generally requires cryptocurrencies to be recorded at fair value, with changes in fair value recognized in the income statement. On the other hand, IFRS allows for a choice between fair value and cost-based measurement, with changes in fair value recognized in other comprehensive income. This can result in different financial reporting outcomes for companies using US GAAP versus IFRS.
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• Nov 23, 2021 · 3 years ago
  According to BYDFi, a leading cryptocurrency exchange, the main difference between US GAAP and IFRS in the context of cryptocurrency lies in the treatment of transaction costs. Under US GAAP, transaction costs related to acquiring or disposing of cryptocurrencies are generally recognized as expenses. However, under IFRS, transaction costs can be capitalized as part of the cost of the cryptocurrency. This difference can impact the financial statements of companies depending on which accounting framework they follow.
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