IDEAS home Printed from https://ideas.repec.org/a/asi/joabsj/v12y2022i2p139-149id4680.html
   My bibliography  Save this article

Implementation of Accounting Standards for Cryptocurrency Companies in Indonesia

Author

Listed:
  • Metodius France Marjun Janggur
  • Trinandari Prasetyo Nugrahanti

Abstract

The development of number of cryptocurrency startups around the world, including in Indonesia, is increasing every year, demanding business people to provide financial services by accepting the presence of cryptocurrency technology directly in the real world. The purpose of this study is to explore the application of the Statement of Financial Accounting Standards (PSAK) adopting International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) on cryptocurrency companies at the Indonesian National Indodax Company (Bitcoin Indonesia). This research method is descriptive qualitative with data collection methods using interview and observation techniques. The results show that the Indodax Company (Bitcoin Indonesia) uses IAS 2 inventory because the company's core business is in brokerage, which measures cryptocurrency inventory recorded at fair value after deducting costs to sell and is recognized in the income statement and reported in the Available for sale financial asset account. At the same time, the entity applies IAS 38 intangible assets in the measurement, valuation, and presentation of financial statements that refer to computer software and internet domains, not cryptocurrency assets in the form of coins and tokens. In addition, entities that measure and value cryptocurrency assets (cash and tokens) using financial instruments IFRS 9 Financial Instruments: Recognition and Measurement are calculated and recorded as financial assets at fair value through profit or loss (FVTPL).

Suggested Citation

  • Metodius France Marjun Janggur & Trinandari Prasetyo Nugrahanti, 2022. "Implementation of Accounting Standards for Cryptocurrency Companies in Indonesia," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 12(2), pages 139-149.
    • Handle: RePEc:asi:joabsj:v:12:y:2022:i:2:p:139-149:id:4680
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5006/article/view/4680/7379
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:joabsj:v:12:y:2022:i:2:p:139-149:id:4680. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5006/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.