The Accountant Quits Podcast Episode 12 | Shehnaaz Suleman from BDO on Accounting for Crypto Assets
With more and more institutional money pouring into the crypto market, I wanted to dive into how these cryptocurrencies are being recorded into the financial statements.
As of now, cryptocurrencies do not have a stand alone accounting standard, and therefore are being accounted under ‘Intangible Assets’ - the standard that governs assets like software licences, trademarks, and so on.
While innovation in the crypto space is moving at a rapid pace, we cannot say standard setters in the accounting industry are having the same stamina to keep up.
However, I must say that I do sympathize with them since new crypto assets are emerging all the time with varying properties. The task is monumental to say the least.
To help us understand how to interpret the current standards, I speak to Shehnaaz Suleman, a Partner at BDO South Africa specializing in IFRS Technical.
In this episode, you will learn;
- Where are we right now with accounting for crypto assets;
- The issues with the current accounting treatment;
- Differences with holding crypto as a long term investment rather than for trading purposes;
- How to account for stable coins;
- Whether we need a stand alone standard for crypto;
- And much more.
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