How do you account for cryptocurrencies that are used as payment methods?

Megha

Last Update vor 10 Monaten

The acquisition cost of a cryptocurrency that is used as a payment method is calculated based on the amount of money that has been paid or is owed for it. If fees to intermediaries are subtracted from the purchase price of a cryptocurrency, these deductions should not be reported separately, and the fair value of the cryptocurrency should be included in the purchase price of the cryptocurrency.


When determining the fair value of a cryptocurrency during the subsequent measurement, a data source should be chosen that will be used on a regular basis in determining the fair value of a cryptocurrency by the enterprise. According to experts, the most reliable data sources are web-based publications that publish the average market prices from the world's major cryptocurrency stock exchanges on a regular basis.


All costs associated with cryptocurrency mining activities should be recorded as expenses as soon as they are incurred, and a mined cryptocurrency should be recorded at its fair value at the time of initial recognition, with the difference between the fair value and the recorded value being recorded as income in the profit and loss statement.

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