Display of cryptocurrency in accounting

Makurin, Andrii

doi:10.31499/2616-5236.3(14).2020.224794

Cited by 5 publications

(3 citation statements)

References 19 publications

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“…However, considering that as of May 12, 2021, there were 18,7 million bitcoins in circulation, it can be predicted that the bitcoin emission will end much sooner (Makurin, 2021).…”

Section: Fig Sourmentioning

confidence: 99%

Technological Aspects and Environmental Consequences of Mining Encryption

Makurin

2023

ees

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Introduction. The digital economy has significantly changed not only the types, forms and mechanism of payments, but also the form of money itself. Electronic money is becoming more popular, which increases the relevance and importance of the study of technical aspects and environmental consequences of mining encryption. The choice of equipment for cryptocurrency mining and its impact on the environment remains a rather debatable issue. It is also not clear how to calculate the costs of mining cryptocurrencies in order to determine the cost of such coins which creates obstacles to the normal reflection in the accounting of such activities in the future and the payment of the corresponding taxes on such operations where cryptocurrencies are involved. Aim and tasks. The study aims is to investigate modern approaches to cryptocurrency mining and the characteristics of the mining process itself, as well as the selection of the main equipment and a list of costs to ensure this activity takes into account the environmental consequences of mining encryption. Results. Cryptocurrency mining is the process of creating digital currencies. All transactions in the network are not processed by any central authority, but by any user connected to the network. The creation of cryptocurrency, i.e. its emission, is the acquisition of certain property rights. Determining the cost of mining, for example, one bitcoin depends on the amount of resources spent: the depreciation of the equipment that was used to generate new blockchain blocks and the monthly costs of its maintenance, the cost of high-speed Internet service, the configuration of the mining software product on a   particular pool, combined electricity costs. Conclusions. The development of the cryptocurrency market has both positive and negative consequences at the micro and macro levels. Advantages include independence from the state-regulated banking system and general accessibility; high economic efficiency of mining; transparency of transactions, confidentiality and anonymity, security of data owners; high data security against external influences and attacks; absence of time or territorial restrictions; general availability and lack of need to create centralized data repositories; effective mechanism against theft, counterfeiting and inflation, irreversible nature of transactions. At the macro level, the advantages are the high capitalization of cryptocurrencies, which can contribute to meeting the financial needs of the state as a whole and independence from the state. Therefore, further accounting of such a specific asset as cryptocurrency requires detailed research.

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“…However, considering that as of May 12, 2021, there were 18,7 million bitcoins in circulation, it can be predicted that the bitcoin emission will end much sooner (Makurin, 2021).…”

Section: Fig Sourmentioning

confidence: 99%

Technological Aspects and Environmental Consequences of Mining Encryption

Makurin

2023

ees

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“…А.А. Макурін розглянув низку питань стосовно відображення в обліку інформації про крип-товалюту, серед них розрахунок собівартості отриманої криптовалюти; відображення в обліку криптовалюти залежно від її визнання: віртуальним товаром, нематеріальним активом, фінансовою інвестицією, цифровими грошима [4]. О.В.…”

Section: про облік віртуальних активів в україніunclassified

On accounting of virtual assets in Ukraine

Kovalova

Khoroshylova

2022

Econ. Fin. Law

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The paper examines the problems of the virtual assets market in detail. As is well known, crypto currency as one of the types of virtual assets by its nature has an autonomous, decentralized, cross-border nature, does not have a jurisdictional attachment and a defined issuer. In general, the use of crypto currencies is a new state-of-the-art way of making payments in e-commerce. However, there is no clear understanding of virtual assets and established classification, and the terminological apparatus needs to be clarified in the economic and legal aspect. Therefore, for the virtual economy and virtual currency, it is necessary to provide some clarification to the commonly used definition. Accordingly, the author analyzed a number of issues related to the display of information about crypto currency in accounting, the importance of involving virtual assets in the ownership of a number of socially significant enterprises, as well as individuals. To achieve this goal, we have conducted thorough specialized research of virtual assets in terms of accounting aspects. The reflection on accounting accounts will depend on the type of activity and the area of accounting of such assets. Displaying information about these assets in accounting accounts is quite complex, certain changes are required to ensure compliance with accounting principles for these assets. Our research found that there are a significant number of significant areas that require further research, including the disclosure of virtual assets in financial statements and the detailed examination of these assets as part of inventory. The proposed sub-accounts should be included in the working plan of accounts of the enterprise and reflected in the Order on the accounting policy. "Virtual assets" should be highlighted as a separate section (or subsection). It should prescribe the accounting of receipts and movements of these assets, methods of their evaluation and primary documents that can be used in their accounting.

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“…The challenge of accounting for cryptocurrencies is the major caution financial analysts should take into account before making investment decisions to invest in cryptocurrencies, where accounting issues are related to measuring the cost of mining and trading, such as energy consumption and electricity, to allocate to the investment cost and record in the books, and reporting high-quality financial reports for better governance and transparency in respect to cryptocurrencies (e.g., Makurin 2020;Chou et al, 2022;Gallersdörfer et al, 2023).…”

Section: Introductionmentioning

confidence: 99%

Is it Doubtful for Financial Analysts to Make a Cryptocurrency's Investment Decision? : Accounting and Economic Challenges

Elnashar

2024

IJCR

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Display of cryptocurrency in accounting

Cited by 5 publications

References 19 publications

Technological Aspects and Environmental Consequences of Mining Encryption

Technological Aspects and Environmental Consequences of Mining Encryption

On accounting of virtual assets in Ukraine

Is it Doubtful for Financial Analysts to Make a Cryptocurrency's Investment Decision? : Accounting and Economic Challenges

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