Abstract
The purpose of this thesis is to examine, scrutinize and deduce, The current issues
on accounting for cryptocurrency, to obtain views of accounting and finance
professionals on current issues on accounting for cryptocurrencies. The title of the
thesis was chosen to point out to a reader that there are logical and technical issues
that needs clarification regarding accounting for cryptocurrencies. The thesis also
includes a brief summary of blockchain, just to understand the basics and evaluate
the appropriateness of cryptocurrencies as they are derived from the process of
blockchain.
This thesis advices managers to examine and better understand the key features of
cryptocurrencies that are relevant to their business as so to be able to correctly
account for them as cryptocurrencies have a quasi-asset and quasi-currency feature
and also can be an inventory to some business models. In addition, it states that the
preparers of financial statements should evaluate the appropriateness of their
accounting policies for cryptocurrencies and validate their disclosures about
cryptocurrencies are material and sufficiently transparent to users of financial
statements.
This thesis warrants for standard- setters to undertake research of this area so as to
provide guidance and clarity in accounting for the cryptocurrencies in areas such as
asset classification, revenue recognition, valuation and disclosures. They must also
ensure that the accounting guidance for cryptocurrencies is relevant and useful to
the preparers of financial statements and the users of financial statements.
The research of the thesis will focus on key accounting themes relevant to
cryptocurrencies. Although the literature on the topic of the thesis available, is
limited and narrow. Accounting standards are studied in depth in order to deduct
their appropriateness on cryptocurrencies for the literature review. Further seven
interviews were conducted with accounting professionals to obtain their views on the
accounting themes for cryptocurrencies.
