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- This topic has 3 replies, 3 voices, and was last updated 2 years ago by Stephen Widberg.
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- March 11, 2021 at 1:32 am #614144
sir my kaplan study text states that changes in values of cryptocurrencies purchased by firms should be reflected in their statement of profit or loss.
However, i have 2 arguments against that, one institutions don’t own cryptocurrencies for trading, they own it as investments. and two, gains and losses are unrealised, so why show them in SPL at all?
March 11, 2021 at 9:13 am #614159Good – that’s what SBR is all about – having a debate – no right no wrong 🙂
I agree about unrealised.
There are of course inconsistencies with unrealised profits – gains on PPE go to OCI and gains on IP go to P&L
You will find a great debate on this at:
December 7, 2021 at 8:19 am #642878Hi, from what I read there are two methods of valuation of cryptocurrencies: cost and revaluation method. According to the article on ACCA website they should be recorded as intangible assets. What would be the double entries for both of them considering increase and decrease in value?
December 7, 2021 at 9:31 am #642893Gains to OCI
Losses to P&L unless reversing an earlier upwards revaluationSo…………regular rules for revaluation of intangibles
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