REGULATION OF VIRTUAL CURRENCY ACCOUNTING ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS

Abstract

Due to rapidly advancing technologies in the world, some companies seek the integration of virtual currency into their financial management system. Virtual currency is a digital asset that lacks a physical or material basis. Despite the rapidly growing number of transactions worldwide using virtual currencies, international financial reporting standards do not provide clear guidelines on how such assets should be reflected in accounting. In this article, using methods of scientific literature, synthesis, summarization, graphical representation, an attempt was made to reveal the concept of virtual currency, accounting regulation, and its connection with international financial reporting standards, as well as to identify issues related to the recognition of virtual currency in accounting. The analysis revealed that in practice, virtual currency can be used not only as a means of payment but also for certain investment or accumulation purposes. The problems of recognizing virtual currency in accounting are related to uncertainty because business entities, considering the purposes of holding and using virtual currency, have to choose an accounting method that reflects the true and fair financial position of the company. As a result, companies that have virtual currency violate the principles of comparability and understandability in financial reporting, as they may present different pictures, and the data in financial statements cannot be easily or very difficult to compare with each other. Analysing international accounting standards, it is noted that virtual currency shares most similarities with assets and financial instruments, so it would be meaningful to apply one of these standards, taking into account the purpose of holding virtual currency in the company.