IFRS (#)

Accounting for
crypto-assets
Contents
1. Introduction 1

2. What are crypto-assets? 2

2.1. Cryptocurrencies 3

2.2. Tokens (crypto-assets other than cryptocurrencies) 5

3. Accounting for crypto-assets 10

3.1. Selected activities of standard setters 10

3.2. Special situations 13

3.3. Conclusion 15

4. Supporting details 16

5. Contacts 21
 1

Introduction
Crypto-assets experienced a breakout year in 2017. Cryptocurrencies,
such as bitcoin and ether, have seen their prices surge as the public’s
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a wave of new crypto-asset issuance has been sweeping the start-up
fundraising world, sparking the interest of regulators in the process.
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`Ykakkm]\Yf]phgkmj]\jY^l^gjhmZda[[gee]flgfY[[gmflaf_^gj
“virtual currencies”.1AfY\\alagf$l`]A9K:\ak[mkk]\[]jlYaf^]Ylmj]kg^
ljYfkY[lagfkafngdnaf_\a_alYd[mjj]f[a]k\mjaf_alke]]laf_afBYfmYjq
*()0$Yf\oadd\ak[mkkaf^mlmj]o`]l`]jlg[gee]f[]Yj]k]Yj[`hjgb][l
in this area.1
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gl`]jlqh]kg^[jqhlg%Ykk]lk&L`]f$o]\ak[mkkkge]g^l`]j][]fl
activities by accounting standard setters in relation to crypto-assets.
This structure highlights the fact that dealing with crypto-assets requires
a detailed understanding of the technical intricacies of distributed ledger
l][`fgdg_q g^l]fj]^]jj]\lgYkZdg[c[`Yaf!gfgf]`Yf\$Yf\j]d]nYfl
accounting concepts on the other.
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of the underlying blockchain technology here. For that, we would
j][gee]f\[gfkmdlaf_l`]j][]fl=Q%khgfkgj]\Global blockchain
benchmarking study.

IFRS (#) Accounting for crypto-assets 1

 2

What are
crypto-assets?
Crypto-assets are digital assets recorded on a distributed
ledger. They derive their name from the cryptographic
security mechanisms used within public, permission-less
distributed ledgers. In many cases, they pose a
challenge to established beliefs about money, economic
relationships and investing, thereby also raising questions
YZgmll`]ajYhhjghjaYl]ÕfYf[aYdj]hgjlaf_&
Cryptocurrencies, such as bitcoin and ether, constitute the
earliest and best-known examples of crypto-assets, but
the space continues to grow and evolve, producing new
types of assets that are commonly called tokens.
Afkm[`Y^Ykl%egnaf_]fnajgfe]fl$alak\a^Õ[mdl
to create any lasting taxonomy of crypto-assets.
For the purposes of our analysis, we deliberately have
shown below a distinction between cryptocurrencies
and non-cryptocurrency tokens. We do so in full
acknowledgment of the fact that all crypto-assets may
commonly be referred to as “tokens” and a hard boundary
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\jYo&O]]dYZgjYl]^mjl`]jgfl`]k]\]Õfalagfkafl`]
relevant sections below.

2 IFRS (#) Accounting for crypto-assets

 Crypto-assets
Cryptocurrencies Tokens (crypto-assets other than cryptocurrencies)
Other
Future Colored
innovations? coins
2.1. Cryptocurrencies
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oal`l`]dYmf[`g^:al[gafaf*((1&
2.1.1. Bitcoin
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\]]hdq\akljmkl^mdg^_gn]jfe]flkYf\[]fljYdYml`gjala]k&Al`Yk
khYof]\eYfqaealYlgjk$Zmlj]eYafkl`]d]Y\af_[jqhlg[mjj]f[q
ZqeYjc]l[YhalYdarYlagf&
Afl`]:al[gafZdg[c[`Yaf$Yfqgf][Yfna]ol`]d]\_]jo`a[`
records ownership of bitcoins and transact upon it. Privacy
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or natural person.2
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afl`]nYda\Ylagfg^ljYfkY[lagfkZqmkaf_gf]Ìk[gehml]jlgkgdn]
[gehd]p[jqhlg_jYh`a[]imYlagfk&L`]]imYlagfkgdmlagfk]fYZd]
“blocks” of transactions to be added to the “chain” in return
^gjf]odqÉeaf]\ÊZal[gafk&L`]j]akfgf]]\^gjemlmYdljmkl
IFRS (#) Accounting for crypto-assets
Initial Coin Offering (ICO)
MAG Hybrid Security
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or has access to, a full record of every transaction since the
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this public record is used to verify availability of funds and the
new transaction is encoded into the consensus ledger through the
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participant-to-participant transactions on the blockchain itself
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^gj]pYehd]!&
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to incentivize transaction validation.
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AlkÕfal]$\]ÖYlagfYjqegf]qkmhhdq[YfZ]dac]f]\lgY\a_alYd
gold standard.
3
Afkhal]g^l`Ylhjaf[ahd]$alakaehgjlYfllgfgl]l`Yl:al[gafak The last fork received widespread news coverage, as it caused
\qfYea[jYl`]jl`YfklYla[&L`]j]^]j]f[]aehd]e]flYlagf[g\] Y\]]h\ana\]afl`]=l`]j]me[geemfalqgn]jl`]\][akagflg
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L`]:al[gaf[geemfalq`Yk[gflafmgmkdqY\ng[Yl]\^gjegj]
The case of the DAO has been useful in furthering the broader
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blockchain to that end. Over the course of 2017, this created
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of the technology, pitting adherence to founding principles against
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k][mjala]k&L`]K=;j]d]Yk]\alkJ]hgjlg^Afn]kla_YlagfafBmdq
One such division led to the August 2017 “hard fork” 2017 stating that the DAO tokens were securities and should thus
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[geh]laf_n]jkagfkg^l`]:al[gafZdg[c[`Yaf2gf]Y\ghl]\Zq
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dYZ]d]\:al[gaf;Yk` :;@!&L`ak`a_`da_`lkl`]\][]fljYdar]\$ Proof of work3
consensus-driven nature of the technology.
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be the fastest to solve the cryptographic puzzles required to
2.1.2. Ether add a new block to the blockchain. When the puzzle is solved,
=l`]j]meo]fldan]afBmdq*()-$`Ynaf_Z]]f^mf\]\ZqY[jgo\ l`]eY[`af]afngdn]\hjgn]kl`Ylal[gehd]l]\l`]ogjc$Yf\ak
kYd]fgl\akkaeadYjlgkge]g^lg\YqÌkafalaYd[gafg^^]jaf_k A;Gk!& j]oYj\]\afYfq_an]fkqkl]eoal`Ylgc]fg^nYdm]&
AlakY\][]fljYdar]\hdYl^gjekaeadYjlgYfgh]jYlaf_kqkl]edac]
l`gk]^gmf\afkeYjlh`gf]k3Yfqgf][YfZmad\Yhhda[Ylagfkgf Proof of stake3
lghg^l`]hdYl^gjelgh]j^gjenYjagmklYkck&L`ak\aklaf_mak`]k
AfYhjgg^%g^%klYc]kqkl]e$YnYda\Ylgjemklhjgn]gof]jk`ah
=l`]j]me^jge:al[gaf&:al[gafoYk\]ka_f]\kh][aÕ[Yddqlg
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Z]daeal]\lgkaehd]dg_a[ÈYkYh]]j%lg%h]]j]d][ljgfa[[Yk`
transaction validation. The validator’s probability of validating
kqkl]e&=l`]j]mekmhhgjlkhjg_jYeeaf_[g\]^gjYfqlqh]g^
the next block is equal to its share of all coins in existence.
\][]fljYdar]\Yhhda[Ylagf3alk[YhYZadalqakoa\]j&L`]hdYl^gjejmfk
Transaction fees earned by the validator are paid by the
keYjl[gfljY[lkÈ[gehml]jhjglg[gdkl`Yl]f^gj[]gjf]_glaYl]
transacting parties.
contracts through code.
<]khal]alkhjaeYjq^mf[lagfYkYf]fYZd]jg^\][]fljYdar]\
Yhhda[Ylagfk$=l`]j]me$dac]YfqhmZda[h]jeakkagf%d]kkZdg[c[`Yaf$ 2.1.3. Other cryptocurrencies
j]imaj]kY^gjeg^gf%[`YafnYdm]lgaf[]flanar]ljYfkY[lagf
:al[gafYf\=l`]jj]hj]k]fllogg^l`]egkloa\]dqmk]\
nYda\Ylagf$gjafgl`]jogj\khYql`]eY[`af]kl`Yl]p][ml]l`]
[jqhlg[mjj]f[a]k$ZmleYfqYdl]jfYlan]k]pakl&=pYehd]k^jgel`]
gh]jYlagfkl`YlZmad\Yf\eYaflYafl`]d]\_]j&L`akhYqe]fl[ge]k
lgh)([jqhlg[mjj]f[a]kZqeYjc]l[YhalYdarYlagfYll`]lae]g^
afl`]^gjeg^Y[jqhlg[mjj]f[q[Ydd]\]l`]j&
writing are:
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Ź :al[gaf;Yk`
dac]:al[gaf&Afl`]f]Yj^mlmj] *()0!$alak]ph][l]\lg_jY\mYddq
egn]lgYf]ohjgg^%g^%klYc][gfk]fkmkYd_gjal`e3 called Casper. Ź Jahhd] PJH!

L`]hmZda[=l`]j]mehdYl^gjej]da]kgfl`][gfk]fkmkg^alk Ź Litecoin
hYjla[ahYflkafl`]kYe]oYqYk:al[gaf\g]k$Yf\l`ak`Yk
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section below.

4 IFRS (#) Accounting for crypto-assets

 2.2. Tokens (crypto-assets other
than cryptocurrencies)

O]mk]Élgc]fkÊYkYfmeZj]ddYl]je^gjYoa\]nYja]lqg^
crypto-assets. In contrast to cryptocurrency, which is designed
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lgc]fkl]f\lgZ]\]ka_f]\lgkmhhgjlYegj]fYjjgodq%\]Õf]\$
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o]\]daZ]jYl]dq\jYol`]YZgn]\aklaf[lagf`]j]$\]Õfaf_l`]
l]jelgc]fk`]j]aflge]Yffgf%[jqhlg[mjj]f[qlgc]fkhjgna\af_
kge]l`af_gl`]jl`Yfhmj]dq_]f]jYd%hmjhgk]nYdm]ljYfk^]j&
L`]eYjc]lÌk^g[mk`Ykj][]fldqZ]]fgflgc]fkakkm]\afA;Gk$
but one should note that other types of tokens exist. An ICO is the
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Yj]fglf][]kkYjadqkaehdqY[YhalYd%jYakaf_lggd&O]\ak[mkkkge]
]pYehd]kZ]dgoo`ad]Y[cfgod]\_af_l`Ylf]olqh]kg^lgc]fk
eYqq]lZ]\]n]dgh]\&

2.2.1. Ether
Afl`]É;jqhlg[mjj]f[a]kÊk][lagfYZgn]$o]fgl]\l`Yl=l`]j]meÌk
native cryptocurrency, ether, is necessary to incentivize
transaction validation in the network and thereby acts as a
e]\ameg^]p[`Yf_]kaeadYjlgZal[gaf&Q]l$]l`]jYdkg^mdÕddkl`]
jgd]g^É[jqhlg%^m]dÊlgjmfkeYjl[gfljY[lk$a&]&$alakYf]fYZd]jg^
\][]fljYdar]\Yhhda[YlagfkZmadlgf=l`]j]me&
L`akea_`lafnal]l`]Yj_me]fll`Yl]l`]j`YkYkh][aÕ[
application and should thus fall under “tokens” as opposed to
É[jqhlg[mjj]f[a]kÊoal`afgmjlYpgfgeq&@go]n]j$o]ogmd\
]eh`Ykar]l`]_]f]jYd%hmjhgk]fYlmj]g^l`]=l`]j]mehdYl^gje$
Yf\Zq]pl]fkagf]l`]j$o`a[`[gfljYklkoal`l`]egj]fYjjgodq
\]Õf]\mk][Yk]kk]]fYegf_gl`]jlgc]fk&L`akakmf\]jk[gj]\
Zql`]^Y[ll`Yl]l`]jakoa\]dqmk]\YkYe]Yfkg^hYqe]fl^gj
A;Glgc]fk&Alakkljgf_dq[`YjY[l]jar]\Zqalkjgd]YkYe]\ameg^
exchange.
Therefore, although we acknowledge the technological distinction
Z]lo]]fZal[gafYf\]l`]j$o]\]]ealegj]YhhjghjaYl]lg[dYkka^q
ether as a cryptocurrency for the purposes of an accounting
discussion.

2.2.2. Initial Coin Offerings (ICOs)

L`]l]jeÉA;GÊ]ngc]kl`][gf[]hlg^YfAHG$a&]&$YfafalaYdhmZda[
g^^]jaf_g^Y[gehYfqÌkk`Yj]kgfYklg[c]p[`Yf_]&
An ICO involves the issuance of new coins recorded on a
\akljaZml]\d]\_]j najlmYddqYdoYqk=l`]j]me!&- The public decides
o`]l`]jlghmj[`Yk]l`]egfl`]ZYkakg^af^gjeYlagfk]lgml
afYÉo`al]hYh]jÊhmZdak`]\Zql`]akkmaf_\]n]dgh]j$Yegf_

IFRS (#) Accounting for crypto-assets 5

other considerations. The white paper typically sets out the
technical details of the tokens’ functionality and explains the value
hjghgkalagfg^l`]kqkl]el`]qmf\]jhaf&
@go]n]j$l`]lgc]fkakkm]\afYfA;GeYqgjeYqfglZ]k][mjala]k$
\]h]f\af_gfl`]mf\]jdqaf_][gfgea[j]dYlagfk`ahkafngdn]\&Alak
[jm[aYdlgmf\]jklYf\l`YleYfqA;Glgc]fk\gfglÕll`]klYf\Yj\
afn]klaf_hYjY\a_eYlYdd$o`a[`j]imaj]khj]hYj]jkg^ÕfYf[aYd
af^gjeYlagflgeYc]mfaim]Yf\[gehd]pbm\_e]flkafj]dYlagflg
their appropriate reporting.
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g^`golgYhhjgY[`l`]e^jgeYj]_mdYlgjqh]jkh][lan]$YkeYfq
bmjak\a[lagfkdY[c[g\aÕ]\d]_akdYlagfgjd]_Ydhj][]\]flmhgfo`a[`
to base consistent rulings.
2.2.2.1. Securities on a blockchain
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l`]lgc]fkakkm]\j]hj]k]fl][gfgea[afl]j]klkafl`]akkmaf_
business, such as ordinary shares. That is, the white paper will set
gmll`]lgc]f`gd\]jÌkja_`llgj][]an]\akljaZmlagfkg^hjgÕl^jge
l`]Y[lanalq[Yjja]\gmlZql`]akkmaf_gj_YfarYlagf k]]>a_mj])!&
Km[`\akljaZmlagfkea_`lZ]\ak[j]lagfYjqgjkmZb][llgY^gjemdYa[
[Yd[mdYlagf&Nglaf_ja_`lkeYqgjeYqfglZ]YllY[`]\lgl`]
Figure 1: Securities on a blockchain
Developer
K]lkmh
1. ICO
2. Distributions
6 IFRS (#) Accounting for crypto-assets
lgc]fk$Ykakl`][Yk]]n]f^gjljY\alagfYdgj\afYjqk`Yj]k KfYh$
Af[&Z]af_Yj][]fl]pYehd]g^YfAHGg^k`Yj]kdY[caf_nglaf_
ja_`lk!&L`]afn]klgjmdlaeYl]dq`Ykl`][`ga[]g^]al`]j`gd\af_l`]
lgc]flg[gdd][ll`][Yk`Ögok^jgel`]akkm]jgjk]ddaf_alafl`]
k][gf\YjqeYjc]l&
In such a scenario, the ICO is in substance an IPO of shares or
\]Zl$a&]&$k][mjala]k$YkoYkj][]fldq`a_`da_`l]\Zql`]K=;Ìk
ruling in relation to the DAO..L`]affgnYlagfakl`mkÉe]j]dqÊ
l][`fgdg_a[Yd$[gfkaklaf_g^l`]aee]\aYl]k]lld]e]flYf\
reconciliation-free record-keeping of transactions facilitated by the
\akljaZml]\d]\_]j&L`]j]akdac]dqlgZ]dalld]af[j]e]flYdYeZa_malq
afj]dYlagflgl`]YhhjghjaYl]Y[[gmflaf_lj]Yle]fl$^gjZgl`l`]
akkm]jYf\l`]afn]klgj$Ykafl`][Yk]g^Yegj][gfn]flagfYd
afn]kle]fl&Af]kk]f[]$l`][gf[]hlakkaeadYjlg[jgo\^mf\af_$
l`gm_`h]j`Yhkgf] l`mk^Yj!lYj_]laf_Yegj]l][`fgdg_a[Yddq
literate audience.
9fA;Gj]hj]k]flkYfYlljY[lan]kgmj[]g^ÕfYf[af_^gjYklYjl%mh
Zmkaf]kk$Ykal]k[`]okl`][gkl$lae]Yf\h]j[]an]\\ak[ge^gjl
afngdn]\afgZlYafaf_ÕfYf[]l`jgm_`ljY\alagfYde]Yfkkm[`Yk
ZYfck$n]flmj][YhalYdaklkgjl`]klg[ceYjc]l&L`akYdkgZ]f]Õlk
afn]klgjko`g[Yfmk]A;Gafn]kle]flklg_Yaf]phgkmj]lg
]Yjdq%klY_]afn]kle]flkoal`gmlhYqaf_`a_`eYfY_]e]flYf\
h]j^gjeYf[]^]]klgN;^mf\k&
=[gfgea[afl]j]kl$
distributions
Organization
Fiat currency
Tokens issued
or crypto-
][gfgea[afl]j]kl!
currency
Investors
MdlaeYl]dq$`go]n]j$l`akc]q\akafl]je]\aYlagfY\nYflY_]
[gfklalml]kYhal^Ydd&Afegkl[gmflja]k$l`]j]Yj]klja[lj]_mdYlagfk
gffglgfdql`]eYjc]laf_Yf\akkmYf[]ZmlYdkgl`]kmZk]im]fl
ljY\af_g^k][mjala]k$Yf\A;GkeYq^Yddoal`afl`]k[gh]g^l`]k]
regulations.
2.2.2.2. “Miniature autocratic government”
(MAG) tokens
EYfqA;GkZj]Ycl`]egd\g^ÕfYf[aYdeYjc]lk]flaj]dqZqg^^]jaf_
o`Yl`Yk[ge]lgZ]cfgofYkYÉmladalqlgc]fÊ&

AfY\\alagflgl`][geegfjakckj]dYlaf_lgafn]kle]flafYfq
]Yjdq%klY_][gehYfq$jakck^gjafn]klgjkaf[dm\]l`]hgl]flaYd
^Yadmj]g^l`]^gjeYlagfg^Yk][gf\YjqeYjc]lYf\Ydkgl`]
hj]nYd]f[]g^k[YeA;GklYcaf_Y\nYflY_]g^l`]`qh]kmjjgmf\af_
crypto-assets and distributed ledger technology. To this end,
emdlahd]_gn]jfe]flkYjgmf\l`]ogjd\`Yn]akkm]\afn]klgj
warnings around ICOs during the second half of 2017, including
the >afYf[aYd;gf\m[l9ml`gjalq MC!$ :mf\]kYfklYdl^—j
Finanzdienstleistungsaufsicht ?]jeYfq!Yf\l`]K=; MK!&
L`akA;Geg\]dafngdn]kl`]\]n]dghe]flg^Y\akljaZml]\
gj_YfarYlagf\]ka_f]\lgk`Yj]kge]j]kgmj[]afYh]]j%lg%h]]j
^Yk`agf ]&_&$`Yj\\jan]klgjY_]khY[]$KlgjbZ]af_Yf]pYehd]g^
km[`Ykqkl]e!&@]j]$Y\]n]dgh]j\]ka_fkYeafaYlmj]][gfgeqg^
kgjlk$afo`a[`l`]lgc]flgZ]akkm]\aklg[gfklalml]l`]e]\ame
g^]p[`Yf_] ]&_&$l`]e]Yfkg^hYqe]fl^gjl`]`Yj\\jan]
klgjY_]khY[]!&

Figure 2: Miniature autocratic government

ICO

Fiat or cryptocurrency
Developer Users
Tokens issued
>]
]k
!
K]

k
lk

a[]
m

jn
h

K]

Organization or
system
ns
ke
To

Tokens
Users Users
Fiat or cryptocurrency

Secondary market

IFRS (#) Accounting for crypto-assets 7

 L`]\]n]dgh]j [gehYfq!k]ddklgc]fkaf]p[`Yf_]^gjÕYl
currency or cryptocurrency, thus earning a return on the
j]kgmj[]k]ph]f\]\lgk]ll`]kqkl]emh&L`]\]n]dgh]jeYq
Ydkg]Yjf[geeakkagfkgfljYfkY[lagfkafngdnaf_l`]lgc]fk$Yf\
l`]hjg[]]\keYqZ]^mjl`]jj]afn]kl]\afl`]eYjc]laf_g^l`]
kqkl]e$l`]j]ZqYlljY[laf_\]eYf\^gjalYf\alklgc]fk&>gjYf
addmkljYlagfg^l`akkqkl]e$hd]Yk]j]^]jlgl`]E9?lgc]fk\aY_jYe&
O]\]jan]gmjfYe]^gjl`akA;Geg\]d^jgel`]^Y[ll`Yloal`afal$
l`]\]n]dgh]jY[lkem[`dac]$a^Yfql`af_$YeafaYlmj]Ymlg[jYla[
_gn]jfe]fl&AkkmYf[]_Yafk[YfZ]dac]f]\lgl`]k]a_fagjY_]
_Yafk_gn]jfe]flk]Yjfo`]fl`]qk]ddZYfcfgl]kYlYhj]eame
gn]jl`][gklg^[gllgf$hYh]jYf\afc&LjYfkY[lagf[geeakkagfk$
o`a[`[YfZ]k]lmfadYl]jYddqZql`]\]n]dgh]j$^mf[lagfem[`
dac]lYp]k&J]afn]kle]flg^[geeakkagfkafl`]kqkl]eYf\alk
eYjc]laf_akYcaflgl`]jgd]khdYq]\ZqhmZda[af^jYkljm[lmj]
afn]kle]flYf\^gj]a_f\aj][lafn]kle]flhjgeglagfY_]f[a]k&
L`]Ymlg[jY[qYkk]jlagfkl]ek^jgel`]^Y[ll`Yll`]j]Yj]fg
voting rights and, legally, the developer owes nothing to token
holders. At the point of issuance, the developer gains the right to
l`]A;Ghjg[]]\kYf\[Yf\goal`l`]eYkaloak`]k&Lgc]f`gd\]jk
have no recourse and no right to receive interest or dividends.
EYaflYafaf_YeafaYlmj]Ymlg[jY[qg^l`akcaf\`af_]kgfl`]
YlljY[lagfYf\j]l]flagfg^mk]j\]eYf\&L`ak$aflmjf$\]h]f\k
gfl`]^mf\Ye]flYdnaYZadalqg^l`]nYdm]hjghgkalagfYf\l`]
gf_gaf_eYafl]fYf[]g^mk]jkYlak^Y[lagf&L`]afn]kle]fl
[Yk]^gjE9?lgc]fA;Gk$l`mk$Zmad\kmhgfYfYkk]kke]flg^
Yfla[ahYl]\h]j^gjeYf[]Y_Yafkll`]k][jal]jaY$oal`l`]lgc]f
hja[]^Yddaf_Yll`]afl]jk][lagfg^YnYjaYZd]\]eYf\Yf\Õfal]
kmhhdq&Hja[]\ak[gn]jqg[[mjkl`jgm_`l`]k][gf\YjqeYjc]l$
a&]&$l`jgm_`[jqhlg%]p[`Yf_]k$afl`]kYe]oYqYk^gjgl`]jlqh]k
of crypto-assets.

2.2.2.3. Hybrids
Alak[jm[aYdlgfgl]l`Ylk][mjalqlgc]fkYf\E9?lgc]fkj]hj]k]fl
log]f\kg^Y[gflafmme$jYl`]jl`YfYZafYjq[`ga[]&Gf_gaf_
innovation in the crypto-asset space continues to produce hybrid
lgc]fkl`YlYj]hYjlE9?lgc]f$hYjlk][mjalq&Ngdme]k[gmd\Z]
written on the variety of technologies observed and approaches
lYc]f$Zmlo]]f[gmjY_][gehYfa]klgk]]clYadgj]\hjg^]kkagfYd
advice if they wish to incorporate crypto-assets into their
Zmkaf]kkeg\]dk&

2.2.3. Colored coins (e.g., Ripple issuances)

9\akljaZml]\d]\_]j[YfZ]mk]\YkYhdYl^gje^gjeYaflYafaf_
Y\akljaZml]\j][gj\g^Yfqcaf\g^\YlY&H`qka[YdgjÕfYf[aYd
assets, such as gold or stocks, can be “tokenized”, i.e., recorded
Yklgc]fkgfY\akljaZml]\d]\_]j&L`]Yaeg^l`aklgc]farYlagfaklg
klj]Yedaf]ljY\af_l`jgm_`aee]\aYl]k]lld]e]flg^ljYfkY[lagfk
Yf\l`]]daeafYlagfg^j][gf[adaYlagfhjg[]kk]k&

8 IFRS (#) Accounting for crypto-assets

Details of existing assets can be inscribed into a distributed ledger
through the “coloring” of the ledger’s tokens. This is technically
hgkkaZd]]n]foal`afl`]:al[gafZdg[c[`Yaf$ZmlYkqkl]e]paklk
l`Yl`YkZ]]fkh][aÕ[Yddqk]lmhlg^Y[adalYl]al2Jahhd]&
Jahhd]akY\akljaZml]\d]\_]jl][`fgdg_a[YddqkaeadYjlg:al[gafgj
=l`]j]me$Zml[gf[]hlmYddqem[`d]kkjY\a[Yd&Al]^^][lan]dqk]jn]k
YkYkqkl]eg^[j]\aldaealkYf\YhYqe]flhjglg[gd&
É?Yl]oYqkÊgfl`]f]logjcgh]jYl]em[`dac]ZYfck&L`]q[Yf
akkm]lgc]fk [gdgj]\[gafk![Ydd]\ÉakkmYf[]kÊ&L`]k]akkmYf[]k
Yj]\aklaf_mak`]\^jgeJahhd]ÌkfYlan][jqhlg[mjj]f[qPJHafl`Yl
they constitute digital IOUs representing any off-ledger asset
hj]^]jYZdqYfgf%h]jak`YZd]$^mf_aZd]gf]!&AkkmYf[]kYj]YdoYqk
la]\lgYkh][aÕ[akkm]j$e]Yfaf_l`YlYdd[mjj]f[a]k$km[`Yk]mjgk
gjMK\gddYjkj][gj\]\gfl`]Jahhd]d]\_]j$lYc]l`]^gjeg^
akkmYf[]kla]\lgYkh][aÕ[Éakkmaf__Yl]oYqÊ&
=Y[`mk]jk]lkmhÉljmkldaf]kÊlgkh][aÕ[hYjla]k^gjkh][aÕ[
Yegmflkafkh][aÕ[afkljme]flkÈ]^^][lan]dqY^gjeg^
[gmfl]jhYjlqjakceYfY_]e]fl&=n]fa^logmk]jk\gfglljmkl
each other, they can transact as long as a trust path can be found
Z]lo]]fl`]e$fgeYll]j`goeYfq_Yl]oYqkYj]afngdn]\&L`akak
l`][gf[]hlg^Éjahhdaf_ÊhYqe]flk$]kk]flaYddqY\a_alYdn]jkagfg^
l`]`YoYdYf]logjc$o`a[``YkZ]]fmk]\YkYhYqe]fle]\ameaf
the Arab world for centuries.
If there is no trust line between two parties, the native
[jqhlg[mjj]f[q$PJH$k]jn]kYkYljmkld]kk^YddZY[ce]\ame&L`akak
hgkkaZd]Z][Ymk]Jahhd]j]imaj]k]n]jq_Yl]oYqlgimgl]PJH
prices for any issuance it deals in.
Colored coins are relevant to our discussion of crypto-assets in
l`Yll`]qZ]f]Õl^jge\akljaZml]\d]\_]jl][`fgdg_qYf\eYq$
l`]j]^gj]$hdYqYhYjlafl`]affgnYlagfg^eYjc]laf^jYkljm[lmj]
Yf\hjg[]kk]k&@go]n]j$l`]^mf\Ye]flYdfgn]dlqda]kfglafl`]
kmZklYf[]g^l`]k]Ykk]lk$Zmlafl`]kqkl]ekmk]\lgj][gj\
Yf\ljYfkY[ll`]e&L`]q[YfZ]l`gm_`lg^YkÉ_Yj\]fnYja]lqÊ
crypto-assets.

2.2.4. Future innovations?

9kYÕfYdfgl]$o]k`gmd\j]al]jYl]l`Ylo]`Yn]\ak[mkk]\
nYjagmk]pYehd]kg^lgc]fkYZgn]$fYe]dqA;Glgc]fkYf\[gdgj]\
coins. While the latter category is rather broad and could thus
Z]]ph][l]\lg[Yhlmj]eYfqf]olgc]fk$o]Y[cfgod]\_]l`Yl
gf_gaf_affgnYlagfafl`][jqhlg%Ykk]lkhY[]eYqhjg\m[]kladd
other types of tokens in the future. We would therefore highlight
that these two broad groups of tokens are not intended to be
collectively exhaustive.

IFRS (#) Accounting for crypto-assets 9

 3

Accounting for
crypto-assets
3.1. Selected activities of
standard setters

3.1.1. Overview
Crypto-assets constitute an evolving, fast-growing, but still
j]dYlan]dqf]o$Ykk]l[dYkk&9kYj]kmdl$l`]j]Yj]fgkh][aÕ[
hjgfgmf[]e]flk^jgeY[[gmflaf_Zg\a]kl`Yl\]Ydoal`l`]
Y[[gmflaf_g^km[`Ykk]lk^jgel`]`gd\]jÌkh]jkh][lan]&
L`]hmjhgk]g^l`akk][lagfaklghjgna\]YkmeeYjqg^
selected activities by standard setters. Due to the diversity
and pace of innovation associated with crypto-assets, the
^Y[lkYf\[aj[meklYf[]kg^]Y[`af\ana\mYd[Yk]oadd\a^^]j$
eYcaf_al\a^Õ[mdllg\jYo_]f]jYddqYhhda[YZd][gf[dmkagfk
gfl`]Y[[gmflaf_lj]Yle]fl&L`]Y[[gmflaf_^gj[jqhlg%
assets has to be evaluated on the basis of individual fact
patterns. However, the perspectives of the standard setters,
Ykk`gofZ]dgo$Yj]_]f]jYdaffYlmj]Yf\eYqfglZ]
applicable to all crypto-assets. It is further observed that
l`]j]ak[mjj]fldqfgklYf\Yj\ar]\\]Õfalagfg^[jqhlg%Ykk]lk
Yf\l`]l]jeafgdg_qYf\$`]f[]$l`]\]Õfalagfkmk]\Zq
standard setters vary.

3.1.2. Perspectives from the AASB

Af<][]eZ]j*().$l`]99K:j]d]Yk]\l`]hYh]j$Digital
currency — A case for standard setting activity.1L`]99K:
]pYeaf]\l`][mjj]flA>JKdal]jYlmj]Yf\]nYdmYl]\o`]l`]j
digital currencies should be accounted for as cash or cash
]imanYd]flk$ÕfYf[aYdYkk]lk gl`]jl`Yf[Yk`!$aflYf_aZd]
assets, or inventories.

10 IFRS (#) Accounting for crypto-assets

The paper concluded that, at present, digital currencies
should not be considered as cash or cash equivalents under
A9K/Statement of Cash Flows.7Kh][aÕ[Yddq$aloYk[gee]fl]\
l`YlY\a_alYd[mjj]f[qdY[ckZjgY\Y[[]hlYf[]YkYe]Yfkg^
exchange8 Ylhj]k]fl!Yf\alakfglakkm]\ZqY[]fljYdZYfc&1
AfY\\alagf$Y\a_alYd[mjj]f[qakfglYÕfYf[aYdafkljme]fl$Yk
\]Õf]\afA9K+*Financial Instruments: Presentation, due to the
dY[cg^[gfljY[lmYdj]dYlagfk`ahl`Ylj]kmdlkafYÕfYf[aYdYkk]l^gj
gf]hYjlqYf\YÕfYf[aYddaYZadalq^gjYfgl`]j&10
L`]hYh]j^mjl`]j^gmf\l`YlY\a_alYd[mjj]f[qe]]lkl`]
\]Õfalagfg^aflYf_aZd]Ykk]lk$Yk\]Õf]\afIAS 38 Intangible
Assets$Z][Ymk]Y\a_alYd[mjj]f[qakYfa\]flaÕYZd]fgfegf]lYjq
Ykk]loal`gmlh`qka[YdkmZklYf[]&HYjY_jYh`+g^A9K+0af[dm\]k
a scope exception for intangible assets held for sale in the
gj\afYjq[gmjk]g^Zmkaf]kk&Km[`aflYf_aZd]kYj]kmZb][llgIAS 2
Inventories and, hence, are accounted for at the lower of cost and
f]lj]YdarYZd]nYdm] ]p[]hl^gjafn]flgja]k`]d\Zq[geeg\alq
Zjgc]j%ljY\]jk$Yk\ak[mkk]\Z]dgo!jYl`]jl`Yfmkaf_l`][gkl
gjj]nYdmYlagfeg\]dmf\]jA9K+0&11L`]hYh]j[gee]fl]\$
however, that it is not necessarily clear how “held in the ordinary
course of business” should be interpreted in the context of digital
[mjj]f[a]kegj]ZjgY\dq&>gj]pYehd]$alakfglf][]kkYjadq[d]Yj
a^]flala]kl`YlY[[]hl\a_alYd[mjj]f[a]kYkYe]Yfkg^hYqe]fl
k`gmd\Z][gfka\]j]\lg`gd\l`]e^gjkYd]afl`]gj\afYjq[gmjk]
of business.
>mjl`]jegj]$A9K*\g]kfglYhhdqlgl`]e]Ykmj]e]flg^
afn]flgja]k`]d\Zq[geeg\alqZjgc]j%ljY\]jko`ge]Ykmj]l`]aj
inventories at fair value less costs to sell and recognize changes
af^YajnYdm]d]kk[gklklgk]ddafhjgÕlgjdgkkafl`]h]jag\g^l`]
[`Yf_]&:jgc]j%ljY\]jkYj]l`gk]o`gZmqgjk]dd[geeg\ala]k^gj
others or on their own account. However, it is not necessarily clear
o`]l`]j\a_alYd[mjj]f[a]kk`gmd\Z][gfka\]j]\Y[geeg\alqaf
l`][gfl]plg^A9K*&
L`]99K:Ydkgfgl]kl`Yll`]j]ak[mjj]fldqYdY[cg^Y[[gmflaf_
_ma\Yf[]Yjgmf\aflYf_aZd]Ykk]lkYf\[geeg\ala]k`]d\^gj
afn]kle]flhmjhgk]k&
L`]99K:[gf[dm\]kl`Yll`]j]akYdY[cg^_ma\Yf[]gf\a_alYd
[mjj]f[a]kYf\l`Yll`]e]Ykmj]e]fl_ma\Yf[]mf\]jA9K*Yf\
A9K+0\g]kfglhjgna\]j]d]nYflYf\mk]^mdaf^gjeYlagflgmk]jk
g^ÕfYf[aYdklYl]e]flk ]p[]hl^gjafklYf[]ko`]j]Yf]flalqak

IFRS (#) Accounting for crypto-assets 11

[gfka\]j]\lgZ]Y[geeg\alqZjgc]j%ljY\]j!&Alhjghgk]kl`Yl 3.1.4.2. Accounting for virtual currencies held by
the digital currencies be accounted for at fair value with changes
a virtual currency dealer on behalf of its
af^YajnYdm]j][g_far]\afhjgÕlgjdgkk&L`mk$klYf\Yj\k]llaf_
activity is needed. customers
L`]=phgkmj]<jY^lklYl]kl`YlYnajlmYd[mjj]f[q\]Yd]jak
L`]99K:ÌkhYh]joYk\ak[mkk]\Yll`]9[[gmflaf_KlYf\Yj\k
required to recognize an asset when a virtual currency is deposited
9\nakgjq>gjme 9K9>!$Y[gfkmdlYlan]Zg\qg^l`]A9K:
^jgel`][mklge]jgfl`]ZYkakg^YfY_j]]e]flZ]lo]]fl`]
l`]:gYj\!$af<][]eZ]j*().&AloYkkm__]kl]\l`Yll`]A9K:
najlmYd[mjj]f[q\]Yd]jYf\l`][mklge]j&MhgfafalaYdj][g_falagf$
[gflafm]lgegfalgj\]n]dghe]flkafl`akYj]Y&1
l`]najlmYd[mjj]f[qk`gmd\Z]e]Ykmj]\mkaf_l`]eYjc]lhja[]
at the date when the virtual currency was deposited. At the
3.1.3. Research performed by the FASB kYe]lae]$YnajlmYd[mjj]f[q\]Yd]jakj]imaj]\lgj][g_far]
L`]>afYf[aYd9[[gmflaf_KlYf\Yj\k:gYj\ >9K:!fgl]\ l`]gZda_Ylagflgj]lmjfl`]najlmYd[mjj]f[qlgl`][mklge]jYk
in the Report of the FASB Chairman 1 July, 2017 through YdaYZadalq&L`]daYZadalqake]Ykmj]\Yll`]kYe]YegmflYkl`]
30 September 20171l`Yll`]>9K:klY^^h]j^gje]\ka_faÕ[Yfl corresponding asset.
j]k]Yj[`Y[lanala]kgf\a_alYd[mjj]f[a]k&@go]n]j$l`]>9K:`Yk
At the balance sheet date, a virtual currency dealer is required
yet to discuss this research.
lge]Ykmj]l`]najlmYd[mjj]f[q`]d\gfZ]`Yd^g^alk[mklge]jk
[gfkakl]floal`l`]e]Ykmj]e]flj]imaj]e]flafk][lagf+&)&,&)
3.1.4. Exposure draft issued by the ASBJ Accounting for virtual currencies held by an entity on its own
Af<][]eZ]j*()/$l`]9K:Bakkm]\^gjhmZda[[gee]fl$l`] Z]`Yd^$gfl`]ZYkakg^o`]l`]jYfY[lan]eYjc]l]paklk^gjl`Yl
=phgkmj]<jY^l$Practical Solution on the Accounting for Virtual virtual currency. A virtual currency dealer is also required to
Currencies under the Payment Services Act.1L`]hmZda[[gee]fl e]Ykmj]l`]daYZadalqj][g_far]\afj]dYlagflgl`]najlmYd[mjj]f[q
period ends in early February 2018. `]d\gfZ]`Yd^g^alk[mklge]jkgfl`]ZYdYf[]k`]]lYll`]kYe]
YegmflYkl`][gjj]khgf\af_Ykk]l&9[[gj\af_dq$fg_Yafgjdgkk
k`gmd\Yjak]^jgenajlmYd[mjj]f[a]k`]d\ZqYnajlmYd[mjj]f[q
3.1.4.1. Accounting for virtual currencies held by
\]Yd]jgfZ]`Yd^g^alk[mklge]jk&
an entity on its own behalf
9[[gj\af_lgl`]=phgkmj]<jY^l$Y`gd\]jg^najlmYd[mjj]f[a]kYk 3.1.5. Discussion at the IASB
\]Õf]\Zql`]HYqe]flK]jna[]k9[l$12 excluding those held by a
AfBYfmYjq*()0$l`]A9K:\ak[mkk]\YfmeZ]jg^akkm]k$af[dm\af_
najlmYd[mjj]f[q\]Yd]jgfZ]`Yd^g^alk[mklge]jk$e]Ykmj]kl`]
ljYfkY[lagfkkm[`Ykl`gk]afngdnaf_\a_alYd[mjj]f[a]kl`Ylea_`l
najlmYd[mjj]f[qYleYjc]lhja[]Yll`]ZYdYf[]k`]]l\Yl]a^l`]j]
^gjehYjlg^Yj]k]Yj[`hjgb][llgZ]Y\\]\lgalkY_]f\Y&L`]
akYfY[lan]eYjc]l&9fq\a^^]j]f[]Z]lo]]fl`]eYjc]lhja[]Yf\
:gYj\oadd\ak[mkk$YlY^mlmj]e]]laf_$o`]l`]jlgY\\Yj]k]Yj[`
l`][Yjjqaf_Yegmflakj][g_far]\YkY_Yafgjdgkk&A^YfY[lan]
hjgb][lgfkge]gjYddg^l`]k]ljYfkY[lagfk&1
eYjc]l\g]kfgl]pakl^gjl`]najlmYd[mjj]f[q$alake]Ykmj]\Yl
l`]dgo]jg^l`][gklgjl`]]klaeYl]\\akhgkYdnYdm] af[dm\af_
r]jggjYe]egjYf\menYdm]!&Lgl`]]pl]fll`Yll`]]klaeYl]\
\akhgkYdnYdm]akmk]\^gje]Ykmj]e]flhmjhgk]k$l`]\a^^]j]f[]
Z]lo]]fl`]]klaeYl]\\akhgkYdnYdm]Yf\l`][Yjjqaf_Yegmflak
recognized as a loss, which is not reversible in subsequent periods.

12 IFRS (#) Accounting for crypto-assets

 3.2. Special situations

3.2.1. Forked currencies (and short-selling)

Certain cryptocurrencies have experienced an event described as
a “fork” in the past few years. A fork is a change to the underlying
protocol in the relevant blockchain. It requires all nodes connected
to the blockchain to update to the new version of protocol
software, and adopt that version going forward.
There are currently two possible types of forks. A hard fork and a
soft fork. A hard fork changes the protocol code to create a new
version of the blockchain, alongside the old version. This also
potentially creates new coins. A soft fork is also an update to the
Zdg[c[`Yafhjglg[gd3`go]n]j$gf]n]jkagf Ykkme]\l`]mh\Yl]\
gjf]on]jkagf!akkmhhgk]\lgZ]Y\ghl]\Zql`]eYbgjalqYf\oadd
Z][ge]l`]\geafYflgf]&
>gj]pYehd]$l`]:al[gafZdg[c[`Yaf`Yk]ph]ja]f[]\emdlahd]
^gjck&L`]ÉK]_oalÊ^gjcg[[mjj]\af9m_mkl*()/Yf\[`Yf_]\
l`]\YlYklgj]\oal`af]Y[`Zdg[cafgj\]jlgaehjgn]k[YdYZadalq
and speed. There were two other forks in 2017 which produced
logYdl]jfYlan]:al[gafk2:al[gaf;Yk` :;@!Yf\:al[gaf?gd\
:L?!&Afl`]k][Yk]k$f]oZal[gafko]j][j]Yl]\Yf\$^gj]pYehd]$
YkYj]kmdlg^l`]Õjkl^gjc$l`]`gd\]jg^]Y[`:L;afl`]É[gj]Ê
Zdg[c[`Yafj][]an]\gf]:;@^gj]n]jqgja_afYdZal[gaf`]d\&
>jgeYÕfYf[aYdj]hgjlaf_h]jkh][lan]$l`]g[[mjj]f[]g^Y
hard fork can be likened to a spin-off. When a parent spins off
its subsidiary by distributing the subsidiary’s shares pro rata
to investors in the parent, the parent investors record a stock
\ana\]f\&L`akakj][gj\]\afl`]`gd\]jÌkÕfYf[aYdklYl]e]flkYk
Yf]oYkk]l \]Zal!Yf\\ana\]f\af[ge] [j]\al!&KaeadYjdq$a^Y
[jqhlg[mjj]f[qakkmZb][l]\lgY`Yj\^gjc$l`]`gd\]jakd]^loal`
Yf]paklaf_Ykk]l egkldac]dqfgoogjl`d]kkl`YfZ]^gj]!Yf\Y
f]oYkk]l&:][Ymk]l`]j]dYlagfk`ahakfglgf]g^]imalqgof]jk`ah$
gf][Yffglkh]Ycg^\ana\]f\af[ge]&AlakhjgZYZd]l`Yl$Ykaf
l`][Yk]g^:al[gafYf\:al[gaf;Yk`$l`]]paklaf_Yf\f]oYkk]lk
oaddZ]g^l`]kYe]lqh]Yf\oaddl`]j]^gj]Z][dYkkaÕ]\a\]fla[Yddq
gfl`]aj`gd\]jÌkklYl]e]flg^ÕfYf[aYdhgkalagf&@go]n]j$alak
possible that future forks of different cryptocurrencies will not
adhere to this principle.

IFRS (#) Accounting for crypto-assets 13

 Another interesting situation arises where an investor holds a
short position in a cryptocurrency. There is no way to record
short positions in a cryptocurrency directly on the blockchain,
Yf\l`]j]^gj]l`]k`gjlhgkalagfoaddlYc]l`]^gjeg^Yk]hYjYl]
[gfljY[llgk]ddafl`]^mlmj]&L`Ylogmd\Z]YcaflgYegj]
ljY\alagfYdlqh]g^Ykk]lYf\daYZadalqlgZmqgjk]ddYÕfYf[aYd
afkljme]fl&L`akogmd\lqha[YddqZ]YfYkk]lgjdaYZadalqYk
Yl^YajnYdm]l`jgm_`hjgÕlgjdgkk >NLHD!&
When a fork occurs, the cryptocurrency short-seller’s position
k`gmd\Z]kaeadYjlgl`Ylg^Yk`gjl%k]dd]jg^Yf]imalqafkljme]fl$
which pays a dividend while the short position is outstanding.
K][mjala]kd]f\af_Y_j]]e]flklqha[Yddqkh][a^ql`Yll`]k`gjl%
seller shall be liable to not only surrender the share to its owner
ZmlYdkgj]aeZmjk]l`]Yegmflg^l`]\ana\]f\&@go]n]j$fg
best practice appears to have been established in this area for
cryptocurrency as yet. It is therefore uncertain whether the short-
seller has any additional liability in the case of a hard fork.

3.2.2. Token presale (vs. ICO)

A distinction can be drawn between those tokens issued in an ICO
Yll`]kYe]lae]YkgjY^l]jl`]f]logjcgjk]jna[]akdYmf[`]\$
Yf\l`gk]akkm]\Z]^gj]l`]dYmf[`afYÉhj]kYd]Ê&L`]Kaehd]
9_j]]e]fl^gj>mlmj]Lgc]fk K9>L!hjgb][lZqHjglg[gdDYZkYf\
;ggd]qk]lkgmlY^jYe]ogjc^gjl`]mk]g^km[`^mlmj]lgc]fk&
L`]lgc]falk]d^ a^YE9?lgc]f!\g]kfgl[gfklalml]Yk][mjalq$Yk
discussed elsewhere in this paper. However, a presale involving
l`]Y_j]]e]fllghmj[`Yk]^mlmj]lgc]fk_an]kjak]lgYk][mjalq
Y[[gj\af_lg;ggd]qYf\Hjglg[gdDYZk&L`]Y_j]]e]fl]kk]flaYddq
represents a forward contract on the token that is yet to be
created. Therefore the contract itself constitutes a security under
MKdYo$Yf\ogmd\Z]kmZb][llgk][mjala]kj]_mdYlagfmf\]jl`]
K=; afl`]MK!$Y[[gj\af_lg;ggd]qYf\Hjglg[gdDYZk&
Alakogjl`e]flagfaf_l`ak\aklaf[lagfafl`][gfl]plg^ÕfYf[aYd
reporting because it shows the wide range of legal and regulatory
interpretations of different types and structures of tokens. The
^Y[ll`Yll`]af\mkljqak_jgoaf_jYha\dqe]Yfkl`Ylf]oYf\
[gehd]pkljm[lmj]koaddZ]hgkkaZd]$j]imajaf_[gehYfa]klg
consider up front how they operate in the token space along with
d]_YdYf\Y[[gmflaf_aehda[Ylagfk&

14 IFRS (#) Accounting for crypto-assets

 3.3. Conclusion

The nuanced, constantly evolving nature of the crypto-asset

h`]fge]fgf$[gmhd]\oal`l`]dY[cg^j]d]nYfl^gjeYdY[[gmflaf_
hjgfgmf[]e]flk$hj]k]flk[gehd]p[`Ydd]f_]k^gjhj]hYj]jk
g^ÕfYf[aYdaf^gjeYlagf&Mf\]jdqaf_][gfgea[j]dYlagfk`ahk
emklZ]mf\]jklgg\afl`]ajkmZklYf[]$Yf\l`]Z]klÕl^gmf\
under existing accounting standards. Dealing with crypto-asset
accounting therefore requires a detailed understanding of both
distributed ledger technology and relevant accounting concepts.
In the absence of further action by accounting standard setters,
`gd\]jkg^[jqhlg%Ykk]lkeYqZ]mfYZd]lgY[`a]n]l`]Y[[gmflaf_
lj]Yle]fll`]q[gfka\]jegklYhhjghjaYl]&O][Ymlagfl`Yl]Y[`
individual situation will require a unique approach, tailored with
appropriate professional advice.

IFRS (#) Accounting for crypto-assets 15

 4

Supporting details
1. Perspectives from accounting
standards boards
É9Zgmll`]=phgkmj]<jY^l2HjY[la[YdKgdmlagfgfl`]9[[gmflaf_
^gjNajlmYd;mjj]f[a]kmf\]jl`]HYqe]flK]jna[]k9[l$ÊASB,
`llhk2''ooo&YkZ&gj&bh']f'oh%[gfl]fl'mhdgY\k'*()/%)*(.W*W]&
h\^$Y[[]kk]\.>]ZjmYjq*()0&
É<a_alYd[mjj]f[qÈ9[Yk]^gjklYf\Yj\k]llaf_Y[lanalq&
9h]jkh][lan]Zql`]9mkljYdaYf9[[gmflaf_KlYf\Yj\k:gYj\
99K:!$ÊAASB$`llh2''ooo&YYkZ&_gn&Ym'Y\eaf'Õd]'[gfl]fl)(*'
[+'99K:W9K9>W<a_alYd;mjj]f[q&h\^$Y[[]kk]\.>]ZjmYjq*()0&
ÉA9K:Mh\Yl]BYfmYjq*()0$ÊIFRS, http://www.ifrs.org/news-
Yf\%]n]flk'mh\Yl]k'aYkZ%mh\Yl]k'bYfmYjq%*()0'$Y[[]kk]\*.
BYfmYjq*()0&
ÉKmeeYjqFgl]g^l`]9[[gmflaf_KlYf\Yj\k9\nakgjq>gjme$Ê
IFRS$`llh2''ooo&a^jk&gj_'%'e]\aY'^]Ylmj]'e]]laf_k'*().'
\][]eZ]j'YkY^'YkY^%kmeeYjq%\][%*().&h\^$Y[[]kk]\
->]ZjmYjq*()0&
ÉJ]hgjlg^l`];`YajeYfBmdq)$*()/l`jgm_`
K]hl]eZ]j+($*()/$ÊFASB$`llh2''ooo&^YkZ&gj_'bkh'>9K:'
<g[me]flW;'<g[me]flHY_][a\5))/.).1,/(1)0$Y[[]kk]\0
February 2018.

2. Of pseudonymity and privacy

L`]j]akYhj]nYd]fleak[gf[]hlagfl`YlYddljYfkY[lagfkgfY
Zdg[c[`YafYj]Yfgfqegmk$Zmll`akakfgll`][Yk]&LjYfkY[lagfk
gfhmZda[$h]jeakkagf%d]kkZdg[c[`Yafkkm[`Ykl`]:al[gaf
Zdg[c[`YafYj]hk]m\gfqegmk&9fqgf][Yfna]ol`]d]\_]j$
which records ownership of bitcoins and all transactions that have
occurred upon it, but there is still a lack of connection between the
:al[gafY\\j]kkYf\Yfa\]flaÕYZd]d]_YdgjfYlmjYdh]jkgf&
L`]j]^gj]$oal`]fgm_`af^gjeYlagfgj\YlYgn]jna]o$gf][gmd\
track activity to particular addresses, and addresses to individuals
or parties involved in the blockchain.

16 IFRS (#) Accounting for crypto-assets

9fmeZ]jg^[jqhlg[mjj]f[a]k`Yn]Z]]f[j]Yl]\kh][aÕ[Yddq
lgkgdn]l`]akkm]g^hjanY[qYf\hk]m\gfqealq&L`]k]af[dm\]
R%;Yk`Yf\Egf]jg$o`a[`mk]nYjagmke]l`g\klgeYkcl`]
a\]flalqg^hYjla[ahYflk&L`]k]e]l`g\kafngdn]Ér]jg%cfgod]\_]
hjgg^kÊafl`][Yk]g^R%;Yk`Yf\jaf_ka_fYlmj]k$jaf_[gfÕ\]flaYd
ljYfkY[lagfk Jaf_;L!$Yf\kl]Ydl`Y\\j]kk]k^gjEgf]jg&
L`]l][`fa[Ydogjcaf_kg^]Y[`e]l`g\Yj]Z]qgf\l`]k[gh]g^
l`akhYh]j$Zmll`]hjaf[ahd]akl`Yll`]Yegmflkafngdn]\Yko]ddYk
YddhYjla]klgYljYfkY[lagfYj]fgleY\]hmZda[gf]al`]jf]logjc&
This is despite the fact that both Z-Cash and Monero operate on
hmZda[$h]jeakkagf%d]kkZdg[c[`Yafk&
3. Proof of work vs. proof of stake (vs. other
mechanisms)
Proof of work
Proof of work is the original blockchain consensus protocol,
hagf]]j]\Zq:al[gaf&AfYhjgg^%g^%ogjckqkl]e$f]logjc
hYjla[ahYflk[geh]l]lgZ]l`]^Ykl]kllgkgdn]l`][jqhlg_jYh`a[
puzzles required to add a new block to the blockchain. The input
lgl`]k]hmrrd]k[gfkaklkg^Yddhj]nagmkdqj][gj\]\af^gjeYlagf
on the blockchain, along with the new set of transactions to be
Y\\]\afl`]f]plZdg[c&L`]j]^gj]$l`]afhmlZ][ge]kdYj_]j
Yf\l`][Yd[mdYlagfegj][gehd]pgn]jlae]$f][]kkalYlaf_
increased processing power. This causes the high energy intensity
discussed above.
O`]fl`]hmrrd]akkgdn]\$l`]eY[`af]afngdn]\hjgn]kl`Ylal
[gehd]l]\l`]ogjc$Yf\akj]oYj\]\afYfq_an]fkqkl]eoal`Y
lgc]fg^nYdm]&Afl`]:al[gafZdg[c[`Yaf$l`ak[ge]kafl`]^gjeg^
Yf]odq%eaf]\Zal[gaf&
Fgl]l`Ylo`ad]km[[]kk^mdeafaf_akj]oYj\]\oal`f]oZal[gafk$
one does not have to own any bitcoins as a prerequisite to engage
afZal[gafeafaf_&
Proof of stake
Hjgg^g^klYc]akl`]egkl[geegf[gfk]fkmkhjglg[gdY^l]j
proof of work. We have chosen to illustrate its functionality on the
]pYehd]g^l`]FPL[jqhlg[mjj]f[q$o`a[`mk]kYhmj]hjgg^%g^%
klYc]kqkl]eafljYfkY[lagfnYda\Ylagf&
IFRS (#) Accounting for crypto-assets
Afl`]FPLkqkl]e$Yfqgf][Yfk]lmhYfg\]Yf\ZmqFPL
[jqhlg[mjj]f[q&9nYda\Ylgjemklhjgn]gof]jk`ahg^Y[]jlYaf
Yegmflg^FPLafgj\]jlghYjla[ahYl]af^gj_af_$a&]&$ljYfkY[lagf
validation. The validator’s probability of forging the next block is
]imYdlgalkk`Yj]g^YddFPLaf]pakl]f[]&L`akakY[d]Yj\aklaf[lagf
^jgehjgg^g^ogjc$afl`YlFPLgof]jk`ahakYhj]j]imakal]lg
participation in “forging” and therefore to earning the associated
^]]k&Fgl]l`YlljYfkY[lagf^]]k]Yjf]\Zql`]nYda\YlgjYj]hYa\Zq
l`]ljYfkY[laf_hYjla]k&>gj_af_[j]Yl]kfgf]olgc]fk$YkYddFPL
akhj]%eaf]\&
ÉLjYfkhYj]fl^gj_af_Ê[gfklalml]kYj][]flaehjgn]e]fllgl`]
hjglg[gd$alkYaeZ]af_lgaf[j]Yk]l`]l`j]k`gd\^gjYfYllY[cgf
l`]kqkl]e^jge-)lg1($a&]&$oal`ljYfkhYj]fl^gj_af_$YZY\
Y[lgjogmd\`Yn]lggofgn]j1(g^YddFPLafakkm]afgj\]jlg
eYfahmdYl]l`]d]\_]j&Mf\]jl`akkqkl]e$l`]fg\]o`a[`oadd
nYda\Yl]l`]f]plZdg[cakjYf\gedqk]d][l]\afY\nYf[]$Zmlgfdq
the next 10 validators are known. A node that fails to take up its
jgd]akh]fYdar]\Zql]ehgjYjq]p[dmkagf^jge^gj_af_&
One node forges each block, which allows data to be sent directly
lgal$kh]]\af_mhl`]^gj_af_hjg[]kk&Mfdac]hjgg^%g^%ogjceafaf_$
^gj_af_j]imaj]kdalld][gehmlaf_hgo]jYf\]d][lja[alq&=n]fl`]
kaehd]kl[gehml]jk$km[`Ykl`]JYkhZ]jjqHa$[Yf^gj_]&
Hjgg^%g^%klYc]kqkl]ekkm[`YkFPLÌk[Yfl`mk\]dan]jljYfkY[lagf
kh]]\kYhhjgY[`af_l`gk]g^l`]NakYf]logjc$Yf\eYql`]j]^gj]
prove useful in driving wider adoption of cryptocurrency. In that
[gfl]pl$alakogjl`fglaf_l`Yll`]Ydj]Y\qhghmdYj=l`]j]me
network is expected to adopt proof of stake in 2018.
Other mechanisms
9jYf_]g^gl`]je][`Yfakek]pakl$km[`Ykhjgg^g^Y[lanalq$hjgg^
g^Zmjf$hjgg^g^[YhY[alqgjhjgg^g^]dYhk]\lae]&<]lYadkg^l`]k]
e][`Yfakek^Yddgmlka\]l`]k[gh]g^l`akhYh]j$Ykl`]qogmd\fgl
\aj][ldqkmhhgjll`]hjaeYjq\ak[mkkagfg^ÕfYf[aYdj]hgjlaf_&
4. The DAO hack
>gj^mjl`]jaf^gjeYlagfgfl`]<9G`Y[c$j]^]jlgl`]^gddgoaf_
outline by Coindesk:
“Understanding The DAO Attack,” Coindesk, https://www.
[gaf\]kc&[ge'mf\]jklYf\af_%\Yg%`Y[c%bgmjfYdaklk'$Y[[]kk]\
)-BYfmYjq*()0&
17
 5. ERC-20: crypto-fueling the ICO phenomenon
=l`]j]meoYk[j]Yl]\YkYhdYl^gjelg]fYZd]l`][j]Ylagfg^
\][]fljYdar]\Yhhda[Ylagfk$Yf\A;Gkkaehdq[gfklalml]gf]km[`
application. Their proliferation has been fueled by the availability
g^Ylgc]fhjglg[gd[Ydd]\=J;%*($o`a[`oYk\]ka_f]\lg[j]Yl]
YklYf\Yj\ar]\daklg^jmd]klgo`a[`Ydd=l`]j]melgc]fkemkl
[gf^gje&L`ak[j]Yl]kYo]d[ge]akdYf\g^hj]\a[lYZadalqoal`afl`]
ICO wilderness.

6. US SEC report of investigation regarding

the DAO
M&K&K][mjala]kYf\=p[`Yf_];geeakkagfJ]d]Yk]Fg&0)*(/$
Report of Investigation Pursuant to Section 21(a) of the Securities
Exchange Act of 1934: The DAO$Mfal]\KlYl]kK][mjala]kYf\
=p[`Yf_];geeakkagf$*()/

7. “Money has no intrinsic value*”, and yet we

consider it an asset
"O`ad]l`akklYl]e]flakaflmalan]dqY[cfgod]\_]\ZqeYfq$al
Yhh]Yjk]phda[aldqaf$]&_&$FaYdd>]j_mkgfÌkThe Ascent of Money:
É:Yfcfgl]kÁYj]ha][]kg^hYh]jo`a[``Yn]f]pllgfgafljafka[
ogjl`Ê&D]Y\af_afn]kle]flnYdmYlagfYml`gjalq$FQMKl]jf
Hjg^]kkgj9koYl`<Yeg\YjYf$klYl]kl`YlÉ[mjj]f[a]k[YffglZ]
nYdm]\&ÁEYqZ]Sgf]U[Yfk]lÕj]lgala^Sgf]akU[gd\$SZmlUhYh]j
[mjj]f[q\g]kfgl^mdÕddYfq^mf\Ye]flYdf]]\Êgl`]jl`YfYk
Ye]\ameg^]p[`Yf_]&@]_g]kgflgeYc]l`]\aklaf[lagfl`Yl
[mjj]f[a]k[YfgfdqZ]hja[]\Y_Yafkl]Y[`gl`]j$Yf\l`akakegkl
appropriately based on their purchasing power and adoption.
Money is a social construct, used to facilitate the exchange of
_gg\kYf\k]jna[]k`meYfk\]]enYdmYZd]lgl`]e&LjY\af_naY
YemlmYddqj][g_far]\e]\ameg^]p[`Yf_]akem[`keggl`]j
l`YfZYjl]j]p[`Yf_]g^$]&_&$k`ajlk^gj[YmdaÖgo]jk&@aklgja[Yddq$
nYjagmk^gjekg^egf]q`Yn]Z]]fmk]\$kge]oal`Yj]Ydmk]
nYdm] ]&_&$kYdl!Yf\kge]oal`najlmYddqfgmk]nYdm] ]&_&$hYh]j
ZYfcfgl]k$o`a[`ea_`lgl`]joak]gfdqZ]mk]\YkoYddhYh]jgj
caf\daf_!&?gd\^Yddk^Yj[dgk]jlgl`]dYll]j]f\g^l`]kh][ljme$Yk
al`Yk^]oaf\mkljaYdYhhda[YlagfkYf\alkmk]af[gfkme]jhjg\m[lk$
km[`Ykb]o]djq$akalk]d^\]h]f\]flgfkg[aYdY[[]hlYf[]g^l`]
eYl]jaYdYknYdmYZd]Yf\l`]j]^gj]kmalYZd]^gj\akhdYqaf_o]Ydl`&
Af\]]\$ÕfYf[aYdeYjc]lhYjla[ahYflk^j]im]fldq\]k[jaZ]_gd\Yk
egj]kaeadYjlg[mjj]f[a]kl`Yflggl`]je]lYdk&
L`akakl`]j]^gj]YdkgY[gmfl]jYj_me]fllgl`gk]o`gogmd\
\]]eYf]o$\a_alYde]\ameg^]p[`Yf_]$km[`Yk[jqhlg[mjj]f[q$
not to constitute an asset at all due to its “virtual” nature and the
dY[cg^ÉZY[caf_ÊZqYj]YdYkk]l&Gf]ea_`lklYl]l`Yleg\]jf

18 IFRS (#) Accounting for crypto-assets

ÕYl[mjj]f[a]kYj]ZY[c]\Zql`]_gd\`]d\Zql`]ajakkmaf_
central banks, but this fails to consider the fact that one cannot
actually exchange banknotes for gold at the central bank and the
fact that the central bank typically has the authority to issue an
af\]l]jeafYl]Yegmflg^ZYfcfgl]kÉZY[c]\ÊZqalkÕfal]kmhhdq
g^_gd\ YkoYkl`][Yk]afO]aeYj?]jeYfqgj$egj]j][]fldq$af
RaeZYZo]!&L`mk$l`]nYdm]g^ÕYl[mjj]f[qakYeYll]jg^alkkg[aYd
Y[[]hlYf[]Yf\g^ljmklafl`][]fljYdZYfcÈ`]f[]l`]l]jeÉÕYlÊ&
9f\]n]fa^alo]j]fgl Ykafl`][Yk]g^Y_gd\ gjkYdl$gj[gdgj]\
Z]Y\!klYf\Yj\!$alogmd\Z]YeYll]jg^kg[aYdY[[]hlYf[]g^Yf\
ljmklafl`]nYdm]g^_gd\ gjkYdl$gj[gdgj]\Z]Y\k!&
9kYÕfYdfgl]$[gfka\]jl`]j][]fl\ak[mkkagfj]_Yj\af_l`]
YhhjghjaYl]hYl`g^egf]lYjqhgda[qYk\]n]dgh]\][gfgea]k
]e]j_]^jgel`]ÕfYf[aYd[jakak&Gf]hghmdYjhjglY_gfaklg^l`ak
\]ZYl]$l`]LYqdgjJmd]$]^^][lan]dq[Yddk^gjYfYmlgeYla[^gjemdY
lg\]l]jeaf]l`]d]n]dg^afl]j]kljYl]k$l`]^mf\Ye]flYdd]n]jaf
l`]_gn]jfe]flÌk[gfljgdgn]jl`]egf]qkmhhdq&O`Ylak:al[gaf$
then, but a radical Taylor-Rule-driven Fed?

Sources:
ÉL`]:al[gaf:gge29kk]l$;geeg\alq$;mjj]f[qgj;gdd][laZd]7Ê
YouTube — Aswath Damodaran$`llhk2''ooo&qgmlmZ]&[ge'
oYl[`7n50aF]P;9EWAc$Y[[]kk]\*,G[lgZ]j*()/&
FaYdd>]j_mkgf$The Ascent of Money: A Financial History of the
World L`]H]f_mafHj]kk$*((0!&

8. Pseudo-acceptance of cryptocurrency by
multinationals
Kge]ea_`lhj]k]fll`][gmfl]jYj_me]fll`YlYfmeZ]jg^dYj_]$
emdlafYlagfYd[gjhgjYlagfk`Yn]Yffgmf[]\l`]ajY[[]hlYf[]g^
hYqe]flkaf[jqhlg[mjj]f[q kh][aÕ[Yddq:al[gaf!&@go]n]j$[dgk]j
]pYeafYlagfj]n]Ydkl`Yl^gjl`aklg^mf[lagf$l`]q$af^Y[l$j]imaj]
Yfafl]je]\aYjql`Yl[gfn]jlkl`][jqhlg[mjj]f[qlgÕYl[mjj]f[q&
L`Ylak$l`]k]Õjek\gfglljmdqY[[]hl[jqhlg[mjj]f[qYf\`gd\al
for their own transactional needs.

9. ÈAfka_faÔ[Yfljakcg^[`Yf_]kafnYdm]É
counterargument
9fYj_me]fl[YfZ]eY\]l`YlfglYddÕYl[mjj]f[a]kYj]YkklYZd]
Ykl`gk]afl`]\]n]dgh]\ogjd\$Yk]na\]f[]\Zq`qh]jafÖYlagfaf
][gfgea]kkm[`YkRaeZYZo]gjN]f]rm]dY&L`ak\g]kfglhj]n]fl
l`][dYkkaÕ[Ylagfg^l`]RaeZYZo]Yf\gddYjgjN]f]rm]dYfZgdanYj
as “cash”.

IFRS (#) Accounting for crypto-assets 19

We note above that cryptocurrency is not cash because of its
dY[cg^oa\]khj]Y\Y[[]hlYf[]YkYe]\ameg^]p[`Yf_] Yk
afklalmlagfYdar]\Zql`]Ydegklmfan]jkYddY[cg^j][g_falagfYkd]_Yd
l]f\]jZq_gn]jfe]flkYf\[]fljYdZYfck!$Yf\l`]j]^gj]alakk]]f
Yk]paklaf_YkYfgl`]jYkk]lYdgf_ka\]ÕYlegf]q&L`]j]^gj]$l`]
Éafka_faÕ[Yfl[`Yf_]afnYdm]ÊYj_me]flak\aj][l]\Yl[gehYjaf_
cryptocurrency with other cash equivalents and not cash itself.
L`]k]gl`]j[Yk`]imanYd]flkYj][`YjY[l]jar]\Zqafka_faÕ[Yfl
Öm[lmYlagfkafnYdm]j]dYlan]lgl`][mjj]f[ql`]qYj]\]fgeafYl]\
af$o`a[`ogmd\j]eYafljm]^gj$]&_&$Y[]jlaÕ[Yl]g^\]hgkal
\]fgeafYl]\afRaeZYZo]Yf\gddYjkgjN]f]rm]dYfZgdanYjk&L`ak
ak[gfkakl]floal`l`]Yj_me]flkhj]k]fl]\Zql`]99K:$o`a[`
_g]kgflg[dYja^ql`Ylkaf[]l`]ka_faÕ[Yf[]g^l`]jakcg^[`Yf_]k
in value of a digital currency can only be assessed with “cash”
]paklaf_afl`]kYe][mjj]f[q$[jqhlg[mjj]f[q$l`]j]^gj]$Ydkg^Yadk
l`]\]Õfalagfg^Y[Yk`]imanYd]flYkalakfglÉ[Yk`Ê&
10. Cryptocurrency as an investment
L`akak\]khal]l`]^Y[ll`Yleadd]ffaYdkafhYjla[mdYj`Yn]
`a_`dq^YngjYZd]na]okg^Zal[gaf$]n]f[gehYj]\lgljY\alagfYd
afn]kle]flkafklg[ckYf\Zgf\k&Kge]ÕfYf[aYdY\nakgjk`Yn]
gone so far as to suggest a portfolio allocation to cryptocurrency
as a distinct asset class.
9[[gj\af_lg:dggeZ]j_$Ykmjn]qZqn]flmj][YhalYdÕje
:dg[c[`Yaf;YhalYd^gmf\l`Ylgfdq*g^9e]ja[Yfk`Yn]]n]j
owned cryptocurrency.
H]j`Yhkegj]afl]j]klaf_dq$`go]n]j$YZgml+(g^h]ghd]Y_]\
)0lg+,ogmd\jYl`]jgofMK)$(((ogjl`g^Zal[gafkl`Yf
MK)$(((g^_gn]jfe]flZgf\kgjklg[ck&
=n]fkge]afn]kle]fleYfY_]jk`Yn]km__]kl]\Ykh][aÕ[
hgjl^gdagYddg[Ylagflg[jqhlg[mjj]f[q&>gj]pYehd]$Yk]hYjYl]
:dggeZ]j_Yjla[d]imgl]\YMfagfKimYj]N]flmj]keYfY_af_
hYjlf]jÌkj][gee]f\]\jYf_]g^(lg)(g^gf]ÌkYkk]lk$gfl`]
basis of individual risk appetite.
L`]k]gZk]jnYlagfkmf\]jk[gj]l`]Yj_me]fll`Yll`]hmZda[k]]k
[jqhlg[mjj]f[qYkYf]^^][lan]klgj]g^nYdm]$Zml`Ykfgl q]l!
Y\ghl]\alYkYe]\ameg^]p[`Yf_]&
20
Source:
ÉF]YjdqYL`aj\g^Eadd]ffaYdkKYqL`]qÌ\JYl`]jGof:al[gaf
L`YfKlg[ck$ÊBloomberg$`llhk2''ooo&ZdggeZ]j_&[ge'f]ok'
Yjla[d]k'*()/%))%(0'eadd]ffaYdk%j]Y\q%lg%\al[`%klg[ck%lg%c]]h%
Zal[gaf%jYddq%Ydan]$Y[[]kk]\0Fgn]eZ]j*()/&
É=Yjdq:al[gafAfn]klgj@YkKge]9\na[]Gf@goEm[`Egf]qlg
@gd\af:al[gaf$ÊBloomberg$`llhk2''ooo&ZdggeZ]j_&[ge'f]ok'
Yjla[d]k'*()/%)(%).'oal`%Zal[gaf%hmk`af_%.(((%]Yjdq%afn]klgj%
kYqk%`go%em[`%lg%Zmq$Y[[]kk]\).G[lgZ]j*()/&
11. IAS 38 cost and revaluation models
Mf\]jl`][gkleg\]d$YfaflYf_aZd]Ykk]lak[Yjja]\Ylalk[gkld]kk
YfqY[[memdYl]\YegjlarYlagfYf\YfqY[[memdYl]\aehYaje]fl
dgkk]k&Mf\]jl`]j]nYdmYlagfeg\]d$YfaflYf_aZd]Ykk]lak[Yjja]\
YlYj]nYdm]\Yegmfl$Z]af_alk^YajnYdm]Yll`]\Yl]g^l`]
j]nYdmYlagfd]kkYfqkmZk]im]flY[[memdYl]\YegjlarYlagfYf\
YfqkmZk]im]flY[[memdYl]\aehYaje]fldgkk]k&A9K+0af[dm\]k
kh][aÕ[_ma\Yf[]Yklgo`]fl`]j]nYdmYlagf\a^^]j]f[]k`gmd\Z]
j][g_far]\afhjgÕlgjdgkkgjgl`]j[gehj]`]fkan]af[ge]&
12. Payment Services Act (Japan)
Af*().$l`]HYqe]flK]jna[]k9[l 9[lFg&-1g^*((1!
oYkYe]f\]\lg\]Õf]najlmYd[mjj]f[a]kYf\lgafljg\m[]Y
j]_akljYlagfkqkl]e^gjnajlmYd[mjj]f[q\]Yd]jk&>jgel`]YffmYd
period following the annual period to which 1 April, 2017 belongs,
l`]ÕfYf[aYdklYl]e]flkg^j]_akl]j]\najlmYd[mjj]f[q\]Yd]jk
oaddZ]kmZb][llgÕfYf[aYdklYl]e]flYm\alZqY[]jlaÕ]\hmZda[
accountant or an audit corporation.
IFRS (#) Accounting for crypto-assets
5. Contacts

EY Technical Leadership — IFRS & Blockchain UK FS Assurance FinTech Leadership

Paul Brody Hitesh Patel

Partner Associate Partner
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L2#),)-1(*+.)+
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=2`hYl]d*8mc&]q&[ge

Laure Galcéran Michael Heap

Partner Senior Manager
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>afYf[aYd9[[gmflaf_9\nakgjqK]jna[]kD]Y\]j :Yfcaf_;YhalYdEYjc]lk
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L2#++),.1+,-*+ L2#,,*(/1-)*).(
=2dYmj]&_Yd[]jYf8^j&]q&[ge =2e`]Yh8mc&]q&[ge

Shaun Carazzo Francis Malaspina

Partner Senior Manager
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>afYf[aYd9[[gmflaf_9\nakgjqK]jna[]kD]Y\]j :Yfcaf_;YhalYdEYjc]lk
=jfklQgmf_DDH MC! =jfklQgmf_DDH MC!
L2#,,*(/1-)(,,) L2#,,*(/1-)(0)(
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Victor Chan Andrew Probert

International Director Director
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L2#,,*(/10((.//
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IFRS (#) — Accounting for crypto-assets Authors

BaŲŠ ?]gj_]!<Yfa]d Amanda Green

Senior Senior
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IFRS (#) Accounting for crypto-assets 21

EY | Assurance | Tax | Transactions | Advisory

About EY
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our stakeholders. In so doing, we play a critical role in building a better
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l`] e]eZ]j ^ajek g^ =jfkl  Qgmf_ ?dgZYd Daeal]\$ ]Y[` g^ o`a[` ak Y
k]hYjYl]d]_Yd]flalq&=jfklQgmf_?dgZYdDaeal]\$YMC[gehYfqdaeal]\
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has been printed on paper with a high recycled content.

L`akeYl]jaYd`YkZ]]fhj]hYj]\^gj_]f]jYdaf^gjeYlagfYdhmjhgk]kgfdqYf\akfglafl]f\]\lg
be relied upon as accounting, tax or other professional advice. Please refer to your advisors for
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