Impact of Cryptocurrencies (digital assets) on financial reporting.

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Impact of Cryptocurrencies (digital assets) on financial reporting.

What type of asset is a cryptocurrency and how should changes in their value be reflected in profit and loss and when?Explain

 

Research paper. APA 7th Edition. 11 pages.

Overview:

Description of the general area to be studied.

Impact of Cryptocurrencies (digital assets) on financial reporting.

A more specific problem identified within the general area. Think about why this problem is important to study and specify what is already known about the problem.

There are no accounting rules dedicated to cryptocurrencies. Under current US GAAP and under IFRS intangible asset accounting is applied. The result of the lack of such guidance has led to a variety of accounting treatments used in practice which have created significant challenges for preparers of financial statements.

What is not known about the problem that is important to study. Be specific.

  • What are the practical accounting issues and challenges for the preparers of financial statements related to cryptocurrencies?
  • What type of asset is a cryptocurrency and how should changes in their value be reflected in profit and loss and when?
  • Issues about accounting for revenues and disclosures of information in financial statements
  • Risk factors related to accounting for cryptocurrencies

* Review various accounting theories which ones are applicable to the issues related to financial reporting of cryptocurrency assets?