[ad_1]
Andreas Barckow, chair of the Worldwide Accounting Requirements Board, stated in a recent speech that whereas there had been severe consideration given to the matter, creating a regular for cryptocurrencies will not be a precedence proper now.
The chair acknowledged that cryptocurrencies are certainly a serious subject of dialog proper now, which is why it was on the shortlist for ultimate consideration on the board’s challenge agenda. It finally determined, nonetheless, that different issues — resembling intangible belongings, assertion of money flows, and climate-related dangers — had been a much bigger precedence. The board believed the subject fell quick on the 2 standards it typically has for contemplating whether or not to launch a brand new challenge:
- Is there a niche within the literature and are buyers not getting the knowledge they want?
- Is the problem vital and prevalent throughout jurisdictions and industries?
On the primary level, he stated the IFRS Interpretations Committee in its 2018/2019 session concluded that cryptocurrencies ought to both be accounted for as an intangible asset at value, with the choice to measure at honest worth if the merchandise is traded on a liquid market, or as stock at honest worth, within the case of broker-dealers.
“So despite the fact that there isn’t a particular commonplace on cryptos beneath IFRS, that doesn’t imply that our present literature wouldn’t present for an accounting remedy,” he stated.
On the second standards, he stated there may be little proof that accounting for cryptocurrencies is of world significance or prevalence for corporations reporting beneath IFRS.
“Subsequently, the subject was not added to our work plan for now. We are going to maintain it on our radar display, horizon-scan for any developments, and liaise carefully with our colleagues at FASB on their challenge,” he stated.
The IASB’s view stands in distinction with that of the Monetary Accounting Requirements Board, which has had a live project on digital assets, which incorporates cryptocurrencies, for a while now. Most not too long ago, the FASB determined to suggest that cryptocurrencies be measured at honest worth (see previous story).
[ad_2]
Source link