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Thank you for your lectures,
I read in the ACCA website that – digital companies accounting might be tested i.e crypto currencies and Big data, I understand that there is no applicable IFRS, but just wanted to understand the accounting perspective of these items.
Will these be classified as Intangible assets? or Cash and cash equivalents? or Inventory? in Investor Books
What would be the treatment from Issuer perspective, Is it a Equity or a Liability? My understanding is that It does not satisfy the definition of a liability.
Thanks,
Hi,
You’re correct in that there is no IFRS and there isn’t anything on the IASB’s workplan currently to try and address it.
The simple answer is that there isn’t really a category for them currently.
It can’t be intangibles as the bitcoin is held for trading, it is not cash as it is not legal tender, it is not a cash equivalent as its value varies, and it is not inventory as it can be used for other purposes than just for resale.
Yo account for them we should measure them at market price, and that does not exist then at cost.
The good news is that I doubt that there would be anything on the exam on this.
Thanks
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