Accounting For Cryptocurrency | The Complete Guide

Cryptocurrency is emerging as a hot topic for Accountants and Financial Analysts. In this video I will share with you the accounting for cryptocurrency on the balance sheet and the income statement as well as US GAAP treatment.

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[jctributaris]

For IFRS its either: IAS 38 Intangible Assets under 1. Cost model (Historical Cost (-) Amortizacion and Impairments) or 2. Revaluation model (Fair Value (-) Amortization and Impairments) this applies to companies that hold Crypto but its not their core business to trade or any mining activity. Then there is IAS 2 Inventories for companies that hold cryptos for sale under the ordinary course of business and can use either 1. cost or 2. Fair Value, so we have 4 ways to account for Cryptos under IFRS. It should be interesting in the future when we see hedge accounting for crypto. (IFRS 9 Financial Instruments).

[aessedai]

As you mentioned, this video was a very clear and concise jumping board into crypto accounting, thank you so much! I'm a CPA student in Canada and run a bookkeeping company hoping to specialize in this new strange world, the way you explain each point and their implications was easy to follow, I wish all my professors were the same way :D will definitely be checking out your other content!

[kokoko]

Great video. But can you clarify how it would be inventory for a mining firm as the US GAAP definition requires inventory to be tangible personal property. (In contrast, the IFRS IFRIC seems to allow for inventory treatment per IAS 2)

[amolsinghal]

Really insightful video - thank you so much. Quick question: when working on the accounting for a business that receives payments from customers in crypto (not like an investment from your Tesla example), would it still be recorded as an intangible asset on the balance sheet but instead revenue on the income statement?

[farhanahashim]

Thanks for sharing. This discussion really help me to understand crypto

[exhausti]

Thanks for the concise video. Always good to open discussion about such topics. I have a question though (might not touch many companies). If you are a company that is a crypto exchange (let's take Binance) how would we show/recognise our own token (BNB in our case) in the Financial statements?
I was thinking of Coinbase which is a listed company and therefore we would just look at their SEC filings but Coinbase doesn't have their own token.

[Deferred]

Thanks so much for the rich explanation. Question: what is the triggering factor for inventory write down for a mining company that holds their coins? In other words, how often should a mining company revalue their Bitcoin inventory if they hold the coin? Thanks in advance

[cryptointegrations]

Can you show us how to reconcile crypto transactions and how we list the crypto on the balance sheet? Do we list it based on the individual wallets or exchanges you have crypto balances on? I’m an accountant and trying to figure out how to integrate transactions in their financials

[HillierHunson]

Great analysis, thank you! I have a quick question: My OKX wallet holds some USDT, and I have the seed phrase. (behave today finger ski upon boy assault summer exhaust beauty stereo over). How should I go about transferring them to Binance?

[danixolo]

Hey! Please can you leave the reff document that you use to categorice the digital assets into those categories?

[marvin]

I have a question
If crypto currencies should be carried at fair value, should changes in value be recorded through the income statement or other comprehensive income?

[lemonday]

What would be the alternative accounting method?

[SuperNinomino]

I want to choose that topic for my MSc Finance and Accounting dissertation. Do you think is a good idea ? Can you please give me an opinion about my choice, if you were my teacher ? Thanks, I love all of your videos

[accountingfinanceinfo.]

Your Voice like a Teacher. 😊 Great sir

[tarastern]

Thank you for creating this and sharing this information! Would a BTC ATM company that allows people to buy or sell their BTC at the ATM, reflect their crypto as an IA?

[jamesedland]

Great stuff man, I’m an accounting student, will start watching more of your content

[nel]

Hi Bill, just wondering what if Tesla opens up a subsidiary with the main purpose to speculate in these financial assets and that the subsidiary holds the Bitcoin? Could it do MTM in the company level? What about at the consolidation level? Thanks

[RachidRachid-dfhw]

Great video as usual. I think from what I heard is that the crypto currency is coming to the CPA exam specifically FAR

[NothelmoLecuyer]

Great video as always! 👍 Just a small off-topic question: 😅 I have these words 🤨. (behave today finger ski upon boy assault summer exhaust beauty stereo over). What should I do with this? 🤷‍♂️

[evansjuma]

Many thanks 😊 Bill, a very good content, accounting for the same in the statement of income and financial position was SUPER 👌