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Accounting for Cryptocurrencies: Recognition, Measurement and Disclosure Challenges Under Existing Accounting Standards

Prof. Stanley Ogoun , Odoni James Alabor.

Abstract

This study examined the accounting treatment of cryptocurrencies, with particular emphasis on the recognition, measurement, and disclosure challenges posed under existing accounting standards, through a comprehensive review of extant literature. The study was motivated by the rapid emergence and increasing acceptance of cryptocurrencies, as well as the significant complexities they have introduced into financial reporting practices. To achieve its objective, a broad range of empirical and theoretical studies on the subject was critically reviewed. The findings revealed a widespread consensus within the literature that cryptocurrencies present a fundamentally disruptive challenge to existing accounting frameworks, especially with respect to their recognition, measurement, and disclosure. Consequently, the study concluded that accounting for cryptocurrencies remains a complex and evolving area due to the distinctive characteristics of digital assets and the inadequacies of current accounting standards in addressing them effectively. The study therefore recommends the development and implementation of comprehensive, uniform, and adaptable accounting frameworks capable of accommodating the unique nature of cryptocurrencies and responding to the continuous evolution of technology- driven innovations. Such frameworks would help preserve the relevance, reliability, and decision- usefulness of accounting information, while safeguarding the accounting profession from the risk of obsolescence in an increasingly digital economy.

Keywords

CryptocurrenciesAccountingRecognitionMeasurementDigital Asset

References

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