According to Japan the Act
prescribes the following regarding the measurement
of virtual currencies at the balance sheet date for virtual currencies held by an entity on
its own behalf (that is, excluding those held by a virtual currency dealer on behalf of
its customers):
(a) If an active market exists for the virtual currency, such virtual currency should
be measured using the market price at the balance sheet date, and any difference
between the carrying amount should be recognized as a gain or loss.
(b) If an active market does not exist for the virtual currency, such virtual currency
should be measured at its cost. However, if the estimated disposal value is lower than
cost, the virtual currency should be measured using the estimated disposal value
(including zero or a memorandum value), and the difference between the carrying
amount should be recognized as a loss. This loss should not be reversed in subsequent
periods [13].
At the same time the Standard specifies
the following disclosures:
(a) The balance sheet amount of virtual currencies held by the entity on its own
behalf.
(b) The balance sheet amount of virtual currencies held by the virtual currency
dealer held on behalf of its customers.
(c) For virtual currencies held by the entity on its own behalf, showing separately
those with an active market and those without an active market, the quantity and
amount of each type of virtual currency. Virtual currencies with immaterial balance
sheet amounts can be aggregated.
Disclosures may be omitted if the balance sheet amount of virtual currencies (in
the case of a virtual currency dealer, the total of virtual currencies held on its own
behalf and virtual currencies held on behalf of its customers) is immaterial compared
to the total assets of the entity [13].
We do not believe that the accounting treatment under IAS 38 would provide
relevant and useful financial information.
The practical component of accounting for operations with cryptocurrency
(methodology for Ukraine). The practical reflection of cryptocurrency accounting in
Ukraine is insufficiently investigated. Ukrainian scholars differ not only in their
proposals regarding the economic essence of cryptocurrency, but also in the proposals
for the accounting of transactions with cryptocurrency.
There is an approach that suggests cryptocurrency to be considered as electronic
money using the accounts 315 “Electronic money”, 32 “Electronic money”; as an
intangible asset and display it on an account 127 “Other intangible assets” [1]; as a
financial investment and display it on an account 352 “Other current financial
investments” [2]. There are also offers to account in the composition of accounts
receivable on the account 377 “Settlements with other debtors”. Accordingly, the cost
of electronic money is proposed to be reflected under the item "Cash and its
equivalents" in the enterprise balance sheet.
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