Effects of Different Accounting Classification and Measurement Models for Cryptocurrencies

Abstract

This study aims to analyze the impact of different models for classifying and measuring cryptocurrencies on financial statements in terms of equity position, performance, and economic-financial analysis. The cryptocurrency market has developed significantly in recent years, reaching a market value similar to the German or Australian stock exchanges. In the absence or insufficiency of specific accounting standards for cryptocurrencies, preparers of financial reports rely on interpretative guidelines and a variety of requirements and underlying principles applied in different national jurisdictions. The analysis was developed based on a literature review and a practical test, carried out by simulating the accounting for cryptocurrency transactions. As a result, it was found that the different classification and measurement models currently applied in accounting for cryptocurrencies make the financial statements incomparable and can mislead users. The study contributes to the environment of discussion, interpretation and application of accounting standards in the cryptocurrecy transactions and highlights the importance of accounting in user's analysis and economic decision-making process. Additionally, the study suggests a path for future regulations on the subject, in addition to indicating promising fields for new research.