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Crypto asset assessment models in financial reporting content typologies

Author

Listed:
  • Tatiana Morozova

    (Plekhanov Russian University of Economics, Russian Federation)

  • Ravil Akhmadeev

    (Plekhanov Russian University of Economics, Russian Federation)

  • Liubov Lehoux

    (CPA, MIATI GL and VAT Accountant RLG Europe B.V. (Swiss Branch), Switzerland)

  • Alexei Valerievich Yumashev

    (I.M. Sechenov First Moscow State Medical University, Russian Federation)

  • Galina Vladimirovna Meshkova

    (Bauman Moscow State Technical University, Russian Federation)

  • Marina Lukiyanova

    (Financial University under the Government of the Russian Federation, Russian Federation)

Abstract

Given the pace of development of the digital economy, companies' operations with crypto assets are an objective inevitability for most states. At the same time, national jurisdictions no longer have the opportunity to ignore the fact of business working with crypto assets. Meanwhile, without consensus in the consistent resolution of financial, tax, and other cross-country relations, operations with crypto assets can belong to the underground economy sphere to a large extent. In this regard, the issues of regulating macroeconomic factors when reflecting crypto assets in the structure of the current classification, the procedure for their fair valuation, taking into account the formation of classification and content construction in the financial statements of companies, are relevant. Another aspect is to conduct comprehensive analysis in order to consider scientific and practical approaches to the procedure of classification and evaluation of cryptographic assets in scientific research, professional judgments of major audit international organizations. In this regard, the study focuses on a practical analysis of the current accounting policies of companies operating with crypto assets, taking into account the position of the International Financial Reporting Interpretations Committee (IFRIC). Based on the results of the conducted research, the existing models of classification and evaluation of crypto assets are assessed, and the most problematic practical aspects of their application are highlighted. This made it possible to propose promising models for managing the value of crypto assets, containing the existing practices currently used by companies and their possible directions. It was concluded that the most promising way out of the conflict of interests of business and the current rules of International Financial Reporting Standards (IFRS) is to refine the existing standards, introduce rules of classification and evaluation of crypto assets. The authors also do not exclude that the best solution is to develop a new IFRS standard for the accounting of crypto assets.

Suggested Citation

  • Tatiana Morozova & Ravil Akhmadeev & Liubov Lehoux & Alexei Valerievich Yumashev & Galina Vladimirovna Meshkova & Marina Lukiyanova, 2020. "Crypto asset assessment models in financial reporting content typologies," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 2196-2212, March.
    • Handle: RePEc:ssi:jouesi:v:7:y:2020:i:3:p:2196-2212
    DOI: 10.9770/jesi.2020.7.3(49)
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Erica Pimentel & Emilio Boulianne, 2020. "Blockchain in Accounting Research and Practice: Current Trends and Future Opportunities," Accounting Perspectives, John Wiley & Sons, vol. 19(4), pages 325-361, December.
    2. Zdravka Aljinović & Branka Marasović & Tea Šestanović, 2021. "Cryptocurrency Portfolio Selection—A Multicriteria Approach," Mathematics, MDPI, vol. 9(14), pages 1-21, July.
    3. Filip Hampl & Lucie Gyönyörová, 2021. "Can Fiat‐backed Stablecoins Be Considered Cash or Cash Equivalents Under International Financial Reporting Standards Rules?," Australian Accounting Review, CPA Australia, vol. 31(3), pages 233-255, September.
    4. Nicolette Klopper & Sophia Magaretha Brink, 2023. "Determining the Appropriate Accounting Treatment of Cryptocurrencies Based on Accounting Theory," JRFM, MDPI, vol. 16(9), pages 1-16, August.
    5. Marco Bellucci & Damiano Cesa Bianchi & Giacomo Manetti, 2021. "A literature review on blockchain in accounting research," Working Papers - Business wp2021_04.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.

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    More about this item

    Keywords

    crypto assets; IFRS; bitcoin; valuation models; economics; recognition and measurement; intangible assets; inventory; cash and cash equivalents; financial instruments;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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