Accounting Treatment of Cryptocurrencies under Blockchain

Blockchain technology, a revolutionary innovation built on the principles of distributed ledgers and consensus algorithms, has been the driving force behind the meteoric rise of cryptocurrencies. What was once considered a niche concept has now become an integral part of the global economic fabric, captivating the attention of investors, institutions, and policymakers alike. However, their unique nature challenges traditional accounting frameworks. This paper reviews the domestic and international research on the accounting treatment of cryptocurrencies. Globally, the accounting recognition of cryptocurrencies varies. They are often classified as financial assets or intangible assets depending on their usage. Measurement models, such as the historical cost method, fair value method, and intangible asset revaluation model, all have their own advantages and disadvantages. Currently, the information disclosure regarding cryptocurrencies is fragmented, lacking a unified standard. To tackle these issues, future research should focus on leveraging the distributed ledger technology of blockchain to enhance accounting transparency and establish consistent information disclosure norms. This will improve the quality of financial reports, support informed decision-making, and promote the standardization of cryptocurrency accounting.