What is cryptocurrency accounting?

Cryptocurrency accounting refers to the financial reporting requirements around cryptocurrencies both for investors and for businesses. In this guide, we’ll be focusing on the former - helping accountants, CPAs and tax managers navigate everything they need to know about cryptocurrency accounting. What is blockchain technology?

Are there accounting standards for cryptocurrencies?

There are many issues that accountants may encounter in practice for which no accounting standard currently exists; one example is cryptocurrencies. For example, as no accounting standard currently exists to explain how cryptocurrency should be accounted for, accountants have no alternative but to refer to existing accounting standards.

Are cryptocurrencies a good investment for accountants?

As such, it may get rather confusing for accountants. This is mainly because cryptocurrencies have no accounting standard in play to offer guidance. Even though crypto is a form of digital money, it is not accounted as cash or fiat currency because of its volatile nature.

How will cryptocurrency change accounting and accountants' relationships with clients?

The following are examples of how cryptocurrency will change accounting and accountants’ relationships with their clients: Regulations will lead to new accounting standards from the IFRS. These rules could acknowledge the different types of cryptocurrencies and how they should be treated differently according to GAAP.