RECOGNITION AND MEASUREMENT OF CRYPTOCURRENCIES IN THE FINANCIAL STATEMENTS OF COMPANIES LISTED ON NYSE AND NASDAQ

Abstract

The study aimed to identify how cryptocurrencies have been recognized and measured in the financial statements of companies that carry out transactions with this type of currency. The characteristics of cryptocurrencies were analyzed together with the explanatory notes and financial statements of four identified companies. As a result, it was identified that companies are recognizing cryptocurrencies as an intangible asset with an indefinite useful life and measuring them at cost and subsequently adjusting them to recoverable value. Additionally, a questionnaire was applied to 27 independent auditors (convenience sample) in order to verify perceptions regarding the recognition and measurement of cryptocurrencies. The results show that the lack of accounting regulations regarding the adoption of these cryptocurrencies in transactions that companies carry out leaves doubts for auditors about the accounting treatment of these assets, from the definition of the appropriate accounting item to the value to be considered in its measurement. Furthermore, it was found that the wait for Brazilian legislation on cryptocurrencies reflects the importance of a stable and secure regulatory environment. Companies have been seeking guidance based on existing guidelines, while the implementation of specific legislation would bring accounting clarity and consistency. It is noteworthy that dialogue between stakeholders is essential to fill the regulatory gap and promote best practices, in addition to the fact that self-regulation can be pursued by companies, establishing voluntary standards and codes of conduct. It should be noted that investing in cryptocurrency education can help in understanding accounting challenges and best practices.