An introductory outlook: what are the prospective and current issues with regards to accounting for cryptocurrency?

Abstract

The purpose of this thesis is to examine, scrutinize and deduce, The current issues
\non accounting for cryptocurrency, to obtain views of accounting and finance
\nprofessionals on current issues on accounting for cryptocurrencies. The title of the
\nthesis was chosen to point out to a reader that there are logical and technical issues
\nthat needs clarification regarding accounting for cryptocurrencies. The thesis also
\nincludes a brief summary of blockchain, just to understand the basics and evaluate
\nthe appropriateness of cryptocurrencies as they are derived from the process of
\nblockchain.
\nThis thesis advices managers to examine and better understand the key features of
\ncryptocurrencies that are relevant to their business as so to be able to correctly
\naccount for them as cryptocurrencies have a quasi-asset and quasi-currency feature
\nand also can be an inventory to some business models. In addition, it states that the
\npreparers of financial statements should evaluate the appropriateness of their
\naccounting policies for cryptocurrencies and validate their disclosures about
\ncryptocurrencies are material and sufficiently transparent to users of financial
\nstatements.
\nThis thesis warrants for standard- setters to undertake research of this area so as to
\nprovide guidance and clarity in accounting for the cryptocurrencies in areas such as
\nasset classification, revenue recognition, valuation and disclosures. They must also
\nensure that the accounting guidance for cryptocurrencies is relevant and useful to
\nthe preparers of financial statements and the users of financial statements.
\nThe research of the thesis will focus on key accounting themes relevant to
\ncryptocurrencies. Although the literature on the topic of the thesis available, is
\nlimited and narrow. Accounting standards are studied in depth in order to deduct
\ntheir appropriateness on cryptocurrencies for the literature review. Further seven
\ninterviews were conducted with accounting professionals to obtain their views on the
\naccounting themes for cryptocurrencies.