Cryptoassets – Accounting and tax Cryptoassets – Accounting and tax

The use of cryptoassets is on the rise, not just as direct investments but also throughout companies’ supply chains.

Digital assets or so-called cryptoassets are becoming increasingly common but what are they and how might you record them in your financial statements? 

With limited-scope guidance starting to emerge under IFRS® Standards, it’s key that you understand their form and substance, and the rights and obligations they convey.

If you hold cryptocurrencies (e.g. Bitcoins, Ether etc.) or other cryptoassets (e.g. tokens) or if you are a broker-trader or miner, you could see impacts on your profit or loss, assets, tax and KPIs.

The IFRS Interpretations Committee (IFRIC) issued its tentative agenda decision – Holdings of Cryptocurrencies – in March 2019. We encourage you to take the opportunity to have your say on the tentative decision. The deadline for comments is 15 May 2019.

Check out our IFRS Today podcast in which Brian O'Donovan, Charlotte Lo and Susanne Dixon examine some of the accounting and tax implications arising from recent changes in the cryptoasset landscape.

Read our four-page flyer (PDF 123 KB) to understand the potential accounting and tax implications arising from cryptoassets and the actions you may need to take.

Please speak to your usual KPMG contact if you would like to find out more about how KPMG can help your business.