Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Accounting for Cryptocurrencies - A Nightmare for Accountants
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Business Administration.
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Business Administration.
2019 (English)Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Cryptocurrencies are a phenomenon which has appeared more and more during the last years and is widely used by both individuals and entities. Their technological features have intrigued many, resulting in a significant growth of the number of cryptocurrencies available and an increased amount of areas of usage. More and more businesses have started using cryptocurrencies for example for investment purposes or accepting them as a means of payment. This has resulted in an urgent need of guidance from accounting standard setters to regulate how they are treated in financial statements. 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. Up until recently the guidance for preparers of financial statements consisted of reports issued by the big accounting firms and recommendations from local regulatory accounting bodies. The lack of literature together with the possible consequences for the marketplace has resulted in an urgent need of guidance to avoid a patchwork of accounting treatments in the market. Furthermore, these challenges may result in possibilities of conducting earnings management or an increased information asymmetry between stakeholders and entities.

 

The purpose of this study is to understand and discuss the practical accounting issues and challenges related to cryptocurrencies for preparers of financial statements. The research is based on four broad themes which seek to assist the purpose by including several perspectives to the issues and challenges faced. The themes that the research is divided into are assets, revenues, disclosures and risk factors associated with cryptocurrencies. Based on these four themes the research question this research aims at answering is:

 

“What are the practical accounting issues and challenges for the preparers of financial statements related to cryptocurrencies?”

 

The empirical findings of this research suggest that there are many challenges which need to be resolved when it comes to accounting for cryptocurrencies. There are issues present in all four themes, but the main challenges which were identified revolved around asset classification, valuation, disclosures and risk factors. Furthermore, based on the empirical findings it is evident that the knowledge of practitioners is of a more practical nature while literature is more based on specific standards and paragraphs which can be applied. However, this research provides practical contributions to existing literature and includes aspects of risk consequences for accounting and financial markets at large. It is concluded that more accounting guidance is needed for cryptocurrencies to increase the usefulness of financial information and to reduce possibilities of earnings management which occur because of divergent accounting treatments.

Place, publisher, year, edition, pages
2019.
Keywords [en]
Cryptocurrency accounting, Earnings Management, Assets, Disclosures, Revenues, IFRS, IAS
National Category
Business Administration
Identifiers
URN: urn:nbn:se:umu:diva-161099OAI: oai:DiVA.org:umu-161099DiVA, id: diva2:1331799
Supervisors
Examiners
Available from: 2019-06-27 Created: 2019-06-27 Last updated: 2019-06-27Bibliographically approved

Open Access in DiVA

Accounting for Cryptocurrencies - A Nightmare for Accountants(1438 kB)71 downloads
File information
File name FULLTEXT01.pdfFile size 1438 kBChecksum SHA-512
dff26d64579c7c94e54651d1bd05b0c2d05e30ee0994eb602e4f4a0606235936ed08617709853be96d0d530ebf08ed5a690b264af0b323ed0ee3cd41ef8dd57e
Type fulltextMimetype application/pdf

By organisation
Business Administration
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 71 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 168 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf