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White papers covering the accounting treatment of this assets:
Cryptographic assets and related transactions: accounting considerations under IFRS: PwC In depth INT2019-05
The 2019 updated version covering crypto assets. It covers all the different standards that can be involved when dealing with the transactions of these assets when accounting under IFRS.
How to treat cryptocurrencies in accounting
This article is much less extensive than the one above but covers the topics under FRS 102.
IFRIC Update June 2019 Holdings of Cryptocurrencies
The interpretation/guidance issued by the IFRS Foundation. In the guidance issued by the foundation the state what are the main standards that apply to these transactions. A more detail analysis of not just the standards but other issues arising in these transactions under IFRS can be found in the PWC In depth INT2019-05 mention above.
The main standards affected under IFRS are:
- IAS 2 Inventory
- IAS 38 Intangibles
- IFRS 13 Fair Value Measurement
- IFRS 9 Financial Instruments
Fortunately the most common transactions taking place nowadays are cryptocurrency exchanges (most of them would be classified as a commodity exchange and would fall under the exception of commodity brokers for Inventory which is very similar on both cases under IFRS and FRS 102) and the rest would very easily be classified as Intangibles (unfortunately here there are quite a few differences between both GAAPs and there is the issue of the valuation of the asset using Fair Value).
KPMG The Case for Crypto and Institutionalization
A white paper discussing the different types of assets that are right now using blockchain technology: from cryptocurrencies (such as Bitconin, Ethereum, Litecoin) to the emergence of tokenization and different types of cryptoassets. It is mainly writing from a US point of view but many of the issues are the same in the EU and Ireland.
The paper deals with the most likely challenges cryptocurrencies will be dealing in the future such as compliance with regulatory obligations (with a big emphasis in the issues of Anti-Money Laundering that come with these assets and transactions), securing cryptoassets, accounting and tax reporting, management of forks, etc.
The standards relevant under US GAAP are mostly the same as the ones under IFRS, though the paper does not mention anything regarding exception of commodity brokers, it seems to just focus on using cryptocurrencies for payment in which case they are classified as Intangibles under US GAAP.
Taxation in US seems to be similar in a way to the taxation guide issued by Revenue below. As it is the case in Ireland, there was only one guide from the IRS Notice 2014-21 as of 2018 when the paper was written and it was updated in 2019 to provide more clarifications regarding many of the issues raised in the paper (tax treatment of Forks and Cost Basis of transactions) as per the following blog article from Coindesk The IRS Just Issued Its First Cryptocurrency Tax Guidance in 5 Years.
Taxation of Cryptocurrency Transactions
It covers the most current guidance issued by Revenue Commissioners regarding these transactions. It is a very short ebrief of only 3 pages including the cover page/index, but covers the majority of taxheads that would apply to the most common transactions taking place at the moment: IT, CGT, CT, VAT as well as events such as the payment of emoluments in cryptocurrency (examples of this type of transaction appear in the PWC whitepaper above). There is also a mention about valuation rules and the PWC paper above covers quite extensively this area under IFRS 13 Fair Value Measurement. Alternatively, the guidance provided by FRS 102 on Fair Value measurement can be used.
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