Blockchain and cryptocurrencies

Sep 18 / Annalien Carstens
Do you think Bitcoin and cryptocurrencies have anything in common with accounting? Is it an asset or something else? Should an entity’s auditor be concerned about an entity engaging in cryptocurrency transactions? 

As more and more entities and people are investing in crypto-assets or using digital currency as a medium for exchange, entities and auditors need to start thinking about which IFRS standards would be applicable to account for these types of transactions and if they portray a fair presentation in the financial statements. 

Join us in this session for an understanding of how an entity should account for holding and creating cryptocurrencies. We will also discuss how cryptocurrencies fit into blockchain and the role blockchain plays as a digital ledger of transactions that is duplicated and distributed across an entire network of computer systems on the blockchain. 

Register for this event here

The session will deal with a short overview of:
  • Understanding how cryptocurrency transactions fit into the blockchain decentralised ledger.
  • Understanding the identification and classification of cryptocurrencies.
  • Accounting for cryptocurrencies based on the purpose of holding the currency. Here we will focus on:
  • Accounting (or not) for crypto assets under IFRS 9 Financial instruments.
  • Accounting for held for trading purposes in terms of IAS 2 Inventories.
  • Accounting for capital appreciation in terms of IAS 38 Intangible assets.

  • Discussing the relevant disclosure requirements for holding cryptocurrencies.

We will also touch on some focus areas for accountants and auditors in terms of an entity’s internal controls and risk areas that could lead to potential material misstatements of transactions and balances.

Who should attend?
The target audience that will most benefit from the course are:
  • Tertiary students
  • Preparers of financial statements
  • Auditors
  • Finance personnel
  • Finance consultants

The session aims to provide a short but well-rounded discussion on how cryptocurrencies, IFRS and audit considerations link with one another. 

Meet the author

Annalien Carstens 
Annalien Carstens is the Managing Director of Altimax. As a company, which focuses on solutions impacting people. Her specialisms include IFRS, IFRS for SMEs, IPSAS, GRAP, ISAs and ISQM 1. For the past 18 years, Annalien has been the lead director for the implementation of several turn-around; audit quality; audit improvement; adoption of new reporting and auditing frameworks and standards; and training projects. Altimax services listed entities, large non-listed entities, national and provincial departments, constitutional entities, legislatures, public entities, municipalities, audit firms and professional bodies.