Cryptocurrencies – “Comparison” of Approach by IAS/IFRS and Czech Accounting Legislative

Abstract

Even if the main focus is currently on the situation surrounding the "Covid-19 pandemic" it seems that cryptocurrencies as the issue are still discussed quite often. This article describes the problems solved taking into account the necessity to record information about business activities associated with cryptocurrencies transfers done by the accounting units with respect to legislative rules covering this issue in the Czech Republic, and in the EU (by IAS/IFRS). Objective of the contribution is to define the means of evaluation, keeping accounting records and classification of cryptocurrencies in the regulatory environment of the Czech Republic, IAS/IFRS and further, based on their comparison, to identify the most significant variations and influence of these variations on reporting the financial situation and performance of enterprises. The authors work with the historically given definitions associated with cryptocurrencies, information about the development of cryptocurrencies and approaches to their use. The contribution identified, using the analyses of data provided by international institutions (IFRS Foundation, Deloitte) and Czech national authorities (Ministry of Finance of the Czech Republic, Czech National Bank), that differences in the reporting of cryptocurrencies significantly affect the ratio of long-term and current assets and the amount of operating or investment cash flow.

Taxation and Accounting of Cryptocurrencies from The Point of View of the Czech And Slovak Republic

“…The idea of some form of cryptocurrency dates back to 1989. However, the main milestone was 2008, when the digital currency Bitcoin was introduced (Černá & Hinke, 2022). Currently, cryptocurrencies are developing very quickly, they represent a very fast demand for all industries (Martincevic, Sesar, Buntak, & Miloloza, 2022) and raise a lot of legal questions that are in their early days (Goodell & Aste, 2019).…”

“…Cryptocurrencies can be defined as a decentralized payment system in which their ownership is expressed cryptographically. The Market, respectively, of the cryptocurrency system can be described as a system that serves to issue tokens that are used as a means of exchange (Lánský, 2020;Černá & Hinke, 2022). Cryptocurrencies can be acquired primarily doi: 10.36689/uhk/hed/2023-01-059 through specialized cryptocurrency exchange services or by mining them (Chervinski & Kreutz, 2019).…”