Digital assets in accounting: the concept formation and the further development trajectory

Abstract

Introduction. The transition to digital technologies stimulated the emergence of new accounting objects in the form of digital assets whose features are problematic for being displayed in a rather tightly regulated system of accounting and reporting standards. In the context of emerging new ways of using crypto assets in business practice and increasing the volume of transactions with them, accounting has problems with displaying digital assets in part of confirming their controllability, their assessment at various stages of the life cycle, and identification of participants of cryptocurrency transactions. The paper deals with impact of economy digitalization on accounting methodology in the context of the Industry 4.0, in particular, the prospects for a separate display of digital assets in financial statements. Purpose. This article is aimed at the systematic substantiation of the exclusive status of digital assets as a fundamentally new accounting object in order to further develop, on this basis, the strategy for the development of their accounting and displaying them in the companies’ reporting. Methods. The paper contains a critical analysis of scientific publications devoted to the essence, status and features of the digital assets’ use, as well as the formation of information about them in the accounting and financial statements. The authors have carried out a bibliometric analysis of the frequency of use of terminology in the field of digital assets with the help of special software (VOSviewer and Google Trends). Results. The authors have developed a taxonomy of digital assets based on the use of distributed ledger technology and cryptography. The paper also explores the issue of the differentiated application of existing valuation bases for various types of digital assets. The article systemizes approaches to the deanonymization of participants in transactions with crypto assets which are used to control their origin and the legal regime of applying, for the purpose of rational organization and accounting of them. Conclusions. There is a need to introduce a separate standard designed to regulate accounting and display of digital assets in financial statements, in order to provide stakeholders with relevant information in the process of making managerial and investment decisions.

Exploring the uncharted territories: a structured literature review on cryptocurrency accounting and auditing

“…The “Content analysis/historical analysis” research method is represented by one bibliometric analysis (Derun and Mysaka, 2022), which is centered on digital assets in accounting, highlighting the need for additional content analysis research studies.…”

“…, 2021; Delva Benavides and Torres Amaya, 2022), the vulnerability in crypto wallets (Vincent and Davenport, 2022), their decentralized nature (Angeline et al. , 2021) and, without a doubt, their anonymity (Cyrus, 2023; Derun and Mysaka, 2022). The risks are elevated due to the absence of legal regulations regarding crypto rights in case of hacking or cyberattacks on an entity's data (Petrova et al.…”

“…Cryptocurrencies have gained widespread popularity as of recent times, including among hackers and other cybercriminals. They are more susceptible to being utilized in illicit and criminal activities compared to fiat currencies or conventional online payment systems due to their unique characteristics such as the inherent difficulties in their tracking (Angeline et al, 2021;Delva Benavides and Torres Amaya, 2022), the vulnerability in crypto wallets (Vincent and Davenport, 2022), their decentralized nature (Angeline et al, 2021) and, without a doubt, their anonymity (Cyrus, 2023;Derun and Mysaka, 2022). The risks are elevated due to the absence of legal regulations regarding crypto rights in case of hacking or cyberattacks on an entity's data (Petrova et al, 2020), which not only poses risks to the entities involved but also to the economy and society.…”

Cryptocurrencies’ Impact on Accounting: Bibliometric Review

“…As knowledge expands and new technologies emerge, this study explores the trends of research regarding the subject of cryptocurrency accounting (CA) (Beigman et al 2023;Bellucci et al 2022;Blahušiaková 2022;Derun and Mysaka 2022;Fomina et al 2019;Huang et al 2023;Hubbard 2023;Klopper and Brink 2023;Matusky 2017;Niftaliyev 2023;Procházka 2018;Smith et al 2019;Vasicek et al 2019) and the growing interest in specific concepts between researchers and professionals. The paper aims to evaluate scholarly scientific performance by measuring the keywords with the most significant impact in the field of research and grouping them under specific themes.…”

“…The diverse range of topics related to CA includes challenges in accounting for cryptocurrencies under existing financial standards (Pelucio-Grecco et al 2020;Smith et al 2019;Vasicek et al 2019), recognition and disclosure of cryptocurrencies (Bourveau et al 2022;Fomina et al 2019;Hubbard 2023;Jayasuriya and Sims 2023), characteristics and taxonomy of cryptocurrencies (Derun and Mysaka 2022;Yatsyk and Shvets 2020), costs of production (Barros et al 2023;Kolková 2018;Zadorozhnyi et al 2018), and valuation (Beigman et al 2023;Blahušiaková 2022;Jackson and Luu 2023;Morozova et al 2020;Niftaliyev 2023;Procházka 2018).…”