THE IMPACT OF DIGITAL ASSETS AND CRYPTOCURRENCIES ON ACCOUNTING TREATMENTS AND FINANCIAL REPORTING IN ACCORDANCE WITH INTERNATIONAL STANDARDS
Keywords:
Digital Assets, Cryptocurrencies, Accounting Treatments, Financial Reporting, IFRS, International Standards, Disclosure, BlockchainAbstract
The rapid expansion of digital assets and cryptocurrencies has created significant challenges for accounting systems and financial reporting practices worldwide. The increasing adoption of cryptocurrencies such as Bitcoin and Ethereum in financial transactions and investment activities has raised important questions regarding recognition, measurement, disclosure, and presentation in financial statements according to International Financial Reporting Standards (IFRS). This study aims to analyze the impact of digital assets and cryptocurrencies on accounting treatments and financial reporting while identifying the extent to which international standards can accommodate these emerging financial technologies. The study discusses the accounting classification of cryptocurrencies, measurement methods, disclosure requirements, and the associated risks affecting transparency and reliability in financial reporting. Furthermore, the research highlights the limitations and gaps within current international accounting standards concerning digital assets. The study adopts a descriptive-analytical methodology based on reviewing accounting literature, international standards, and previous empirical studies. The findings indicate that the absence of explicit accounting standards for cryptocurrencies creates inconsistencies in accounting practices and affects the comparability and credibility of financial statements. The study recommends the development of specialized international accounting frameworks to regulate the accounting treatment and disclosure of digital assets in order to enhance transparency and support decision-making efficiency.
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