Cryptocurrency Flashcards
1
Q
Classification of cryptocurrency
A
Cryptocurrency does not qualify as a financial asset because cryptocurrency is not yet recognized as legal tender by the government of the respective country. Thus, it is non monetary value.
Since IFRS 9 cannot be applied, the nearest possible classfication is IAS 38 ITA (non monetary in nature and non physical in nature)
2
Q
How to measure cryptocurrency
A
Measuring at cost is not relevant since the fluctuation of value is high and there is an active market trading cryptocurrency.
Hence, ITA 38 revaluation model shall be applied because more relevant.
Profit or loss recognized to OCI although not appropriate. New standard is needed.
