Accounting for cryptocurrencies

The popularity of cryptocurrencies has soared in recent years. As cryptocurrency becomes more popular, accounting for cryptocurrency assets still remains a question to many as they do not fit easily within financial reporting reporting frameworks, notably the Singapore Financial Reporting Standards (International) (SFRS(I)) or Singapore Financial Reporting Standards (SFRS).

For example, an approach of accounting for holdings of cryptocurrencies at fair value through profit or loss may seem intuitive but is incompatible with the requirements of the SFRS(I) or SFRS in most circumstances.

Determining the right accounting treatment

An entity may have to evaluate following standards to determine appropriate accounting treatment of crypto transactions.

  • Holding of cryptocurrencies
    Holding of cryptocurrencies
    FRS 7 Statement of Cash Flow, FRS 109 Financial Instruments, FRS 16 Property, Plant and Equipment, FRS 38 Intangible Assets, FRS 2 Inventories
  • Issuance of crypto tokens
    Issuance of crypto tokens
    FRS 109 Financial Instruments, FRS 32 Financial Instruments Presentation, FRS 115 Revenue from Contracts, FRS 37 Provisions, Contingent Liabilities and Contingent Assets

How we can help

Accounting policy
Accounting policy
Accounting policy
Determine appropriate accounting policy for cryptocurrency related transaction
Implementation
Implementation
Implementation
Assist with computation of adjustments required for recognition and measurement of crypto currencies
Financial statement preparation
Financial statement preparation
Financial statement preparation
Support in drafting of full financial statements or updated disclosures required due to crypto transactions.

Why Grant Thornton

Our Financial Reporting Advisory Services team has successfully helped companies with the appropriate accounting treatment for holdings in cryptocurrencies, issuance of cryptocurrencies, and other crypto- and blockchain-related accounting issues.

We know that every business is unique, so we work closely with you to understand your needs wherever you're at. We tap on our past experience to bring you deep insights and tailor practical solutions that help you achieve your objectives.

Contact us
Chetan Hans
Partner – Financial Reporting Advisory Services
Chetan Hans
Chetan has more than 16 years of experience in servicing large national and multinational clients in the areas of Assurance, Indian GAAP, US GAAP and IFRS technical accounting advisory, specifically in the areas of financial instruments, leases, consolidation, revenue recognition, business combinations, and cryptoassets/ cryptocurrencies.
Learn more about Chetan Hans
+65 9642 5657
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Contact Chetan Hans
Chetan Hans
Partner – Financial Reporting Advisory Services
Chetan Hans
+65 9642 5657
Chetan Hans
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Insights on accounting for cryptocurrencies

May 2018

IFRS Viewpoint

Accounting for cryptocurrencies – the basics

In this Viewpoint, we explore the acceptable methods of accounting for holdings in cryptocurrencies while touching upon other issues that may be encountered.

Read more

July 2018

IFRS Viewpoint

Accounting for crypto assets – mining and validation issues

This IFRS Viewpoint explores the accounting issues that arise for miners and validators in mining and maintaining the blockchain in accordance with existing IFRS.

Read more

December 2020

Cryptos aren’t just for Christmas (They are for life).

Webinar recording

In this webinar, we highlight the fundamental accounting and tax questions that are currently being debated, and share our views on how accounting and tax rules could be applied to a whole variety of common situations.

Watch the webinar recording