Cryptocurrency in Accounting Perspective

Andreas Worm Carlsen & Anders Knudsen

Student thesis: Master thesis


This thesis relies on the increasing progression in digitalization and growing ecosystem of technologies and applications, and further how this development affects financial reporting for companies with holdings of cryptocurrencies. The thesis is prepared as part of the author’s studies to graduate as MSc in Business Economics and Auditing from Copenhagen Business School. The thesis concentrates on companies with holdings of cryptocurrency and the impact hereof on the financial reporting. Accounting guidance for cryptocurrencies is currently one of many focus areas for both local and international accounting bodies. EFRAG and IFRS Interpretation Committee (IFRIC) issued papers in 2018 considering the interpretation of current standards and possible standard setting activities for cryptocurrencies. For the time being, the topic is continuously discussed, but no deadline for specific accounting guidance under the International Financial Reporting Standard has yet been set. The problem statement for this thesis focuses on possibilities and challenges for recognition, measurement and presentation of cryptocurrencies in financial statements prepared in accordance with International Financial Reporting Standards. In addition, this thesis examines the adequacy and appropriateness of current international accounting standards in relation to cryptocurrencies. Analyzing and interpreting current international accounting standards, the thesis prepares a decision tree supporting companies in the accounting treatment of cryptocurrencies according to applicable standards. The thesis examines companies’ current accounting policies for the treatment of cryptocurrencies in financial statements prepared in accordance with IFRS and analyses the consequences of different international accounting standards used in practice. Considering identified challenges and problems with current International Financial Reporting Standards, the thesis discuss and assess possible standard setting activities and solutions with the focus of ensuring transparency, quality and uniformity in the accounting treatment of cryptocurrencies.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2018
Number of pages146