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.
An entity may have to evaluate following standards to determine appropriate accounting treatment of crypto transactions.
FRS 7 Statement of Cash Flow, FRS 109 Financial Instruments, FRS 16 Property, Plant and Equipment, FRS 38 Intangible Assets, FRS 2 Inventories
FRS 109 Financial Instruments, FRS 32 Financial Instruments Presentation, FRS 115 Revenue from Contracts, FRS 37 Provisions, Contingent Liabilities and Contingent Assets
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.
May 2018
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.
July 2018
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.
December 2020
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.
