What impact do the differences between US GAAP and IFRS have on the accounting of cryptocurrencies?

1 answers

• Nov 23, 2021 · 3 years ago
  The differences between US GAAP and IFRS have a significant impact on the accounting of cryptocurrencies. Under US GAAP, cryptocurrencies are generally treated as intangible assets and are accounted for using the cost method. This means that they are initially recorded at cost and subsequently adjusted for impairment. On the other hand, IFRS provides more flexibility in the classification and measurement of cryptocurrencies. They can be recognized as either intangible assets or financial assets, and their fair value can be recognized. This difference in accounting treatment can result in variations in the reported values of cryptocurrencies and can impact the financial statements of companies. It is important for companies to understand these differences and ensure compliance with the relevant accounting standards.
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