IFRS Standards and Crypto-Assets

Updated Accounting and Financial Reporting Guidance

Background

In March 2019, the International Financial Reporting Committee (IFRIC) issued a tentative agenda decision regarding the holdings of cryptocurrencies. Subsequently, in September 2019, PricewaterhouseCoopers (PwC) released an updated Crypto assets guide on accounting and financial reporting.

Key Developments

The IFRIC agenda decision and the PwC guide provide updated guidance on how International Financial Reporting Standards (IFRSs) apply to the holdings of crypto-assets. The guidance covers topics such as:

• Classification of crypto-assets
• Measurement of crypto-assets
• Impairment of crypto-assets

Implications for Entities

Entities that hold crypto-assets should review the IFRIC agenda decision and the PwC guide to ensure that they are applying IFRSs correctly. The guidance provides valuable insights into the accounting treatment of crypto-assets and helps entities to address the challenges associated with reporting on these assets.

Conclusion

The IFRIC agenda decision and the PwC guide represent significant developments in the accounting treatment of crypto-assets. The guidance provides much-needed clarity on how IFRSs apply to these assets and assists entities in meeting their financial reporting obligations. As the use of crypto-assets continues to grow, it is essential for entities to stay up-to-date on the latest accounting and financial reporting developments.