Determining the Fair Value of Digital Assets for Accounting Purposes

Abstract

The study involves identifying approaches to estimating the real value of digital assets received by an enterprise, controlled by it, and accounted for at a particular cost. The main purpose of the study is to identify the parameters of estimating the value of the received asset from the type of operations (mining, barter). The study uses the method of description, which allowed to establish certain features of the accounting reflection of cryptocurrency in accounting depending on the type of transaction, recognition, and valuation of such an asset. The study analysed the main operations involving cryptocurrency. It is established that upon transactions with virtual currencies, cryptocurrency, digital assets, special attention should be paid to measuring the consumer value of certain goods (assets). Different approaches to the application of measuring the consumer value of assets are analysed. The possibilities of applying the main types of value are considered, it is established that none of them exhaustively covers the essence of measuring the consumer value of digital assets, virtual currency, and cryptocurrency. The introduction of a new type of value as attributive is proposed and substantiated. The main options for cryptocurrency valuation depending on transactions with such assets are disclosed and options for using a certain type of valuation are recommended. The study provides the calculation of the attributive value depending on certain types of operations. It is established that the proposed attributive value reflects a direct dependence on income and sales of the asset, the cost of such an asset, and its recognition for tax purposes. The study provides a real example of calculating and applying the attribute value of a Bitcoin Cash coin for reporting during the revaluation of an asset

Сучасні Технології Ведення Обліку Та Типи Звітності

“…Така звітність значно відрізняється від традиційного формату, такого як паперовий та електронний, який може зчитуватися лише людиною. Цифрову фінансову звітність перевіряє комп'ютерна система, яка унеможливлює допущення помилки та виключає людський фактор [5].…”

Exploration of the Problems of Virtual Currency and Potential Solutions

“…Makurinl and Tarasova used a descriptive approach to the analysis of the main business and accounting characteristics of cryptocurrencies to determine the method of valuation of assets received from mining and bartering in cryptocurrencies. They argued that when using virtual currencies for transactions, special attention should be paid to measuring the consumption value of certain goods or assets [6].…”

Modelling the Vulnerability of Financial Accounting Systems during Global Challenges: A Comparative Analysis

“…Additionally within the context of IAS 16, there is the alternative of changing depreciation regimes for fixed assets, a method that is decided by company management but that can significantly influence stakeholder decisions [37]. While the accounting policies that were described above have created and continue to create vulnerabilities within the IFRS reporting system, the most problematic situation is the determination of fair value for certain types of assets or liabilities, such as intangible assets [38,39] and financial instruments [40]. However, when the effects of the fourth industrial revolution on the global economy are taken into account, the lack of an assessment of current accounting standards within the current context of the globalisation of the world economy is dangerous [35].…”