Cryptocurrency Knowledge Center
Explore our verified library of Cryptocurrency transactions. Every entry is reviewed for IFRS compliance and real-world accuracy by our technical accounting team.
How to Record the Purchase of Bitcoin as a Corporate Treasury Reserve Asset
Recording the purchase of Bitcoin as a corporate treasury asset using company cash.
How to Record an Impairment Loss on Cryptocurrency Under the IAS 38 Cost Model
Recording an impairment loss when the fair value of held cryptocurrency falls below its carrying cost.
How to Record a Cryptocurrency Revaluation Gain in OCI Under the IAS 38 Revaluation Model
Recording an upward revaluation of cryptocurrency holdings under the IAS 38 revaluation model.
How to Record a Realised Gain on the Sale of Cryptocurrency Above Carrying Cost
Recording the disposal of Bitcoin at a price above the carrying cost, recognising a realised gain.
How to Record a Realised Loss on the Sale of Cryptocurrency Below Carrying Cost
Recording the disposal of cryptocurrency at a price below its carrying cost.
How to Record Cryptocurrency Mining Revenue When a Block Reward Is Earned
Recording revenue earned by a cryptocurrency mining operation upon successful block validation.
How to Capitalise ASIC Mining Equipment and Record Monthly Depreciation
Capitalising ASIC mining rigs and recording monthly depreciation.
How to Record Electricity as the Primary Operating Cost of a Cryptocurrency Mining Operation
Recording the electricity cost as the primary operating expense of a cryptocurrency mining operation.
How to Record Proof-of-Stake Staking Rewards as Income at Fair Value on Receipt
Recording income from staking cryptocurrency to validate transactions on a proof-of-stake network.
How to Record DeFi Liquidity Pool Yield Income from Providing Liquidity to a Decentralised Exchange
Recording income earned from providing liquidity to a decentralised exchange (DEX) liquidity pool.
How to Record Trading Fee Revenue Earned by a Cryptocurrency Exchange on User Trades
Recording trading fee revenue earned by a cryptocurrency exchange on user trades.
How to Record the Liability for User Funds Held in Custody by a Cryptocurrency Exchange
Recording the liability of a cryptocurrency exchange for user funds held in custody.
How to Record Primary Market NFT Sale Revenue Under IFRS 15 When the Token Is Transferred to the Buyer
Recording revenue from the sale of NFTs (Non-Fungible Tokens) created and sold by the issuing entity.
How to Record Automatic NFT Secondary Sale Royalty Income Received by the Original Creator
Recording royalty income earned automatically when an NFT is resold on a secondary marketplace.
How to Record Token Sale Proceeds as a Deferred Revenue Liability Until Performance Obligations Are Met
Recording the proceeds received from issuing utility tokens to investors in a token sale.
How to Recognize Deferred Token Revenue as the Underlying Platform Services Are Delivered to Token Holders
Recognizing deferred token revenue as the underlying platform services are delivered to token holders.
How to Record Reserve Assets and Redemption Liability on a Stablecoin Issuer's Balance Sheet
Recording the reserve assets held by a stablecoin issuer against outstanding stablecoin liabilities.
How to Record Protocol Fee Revenue Earned by a DeFi Lending or Swap Protocol
Recording fee revenue earned by a decentralised finance protocol on lending, borrowing, or swap transactions.
How to Recognize Monthly Cryptocurrency Custody Service Fee Revenue from Institutional Clients
Recognizing monthly fee revenue from providing institutional cryptocurrency custody services.
How to Record Cryptocurrency Tokens Received via an Airdrop as Income at Fair Value
Recording cryptocurrency tokens received via an airdrop from a protocol as income.
How to Record New Cryptocurrency Tokens Received from a Hard Fork as Income
Recording the receipt of new cryptocurrency tokens resulting from a hard fork of a blockchain.
How to Write Off Lost or Stolen Cryptocurrency at Its Carrying Value
Writing off the carrying value of cryptocurrency that has been stolen, lost through a hack, or sent to an inaccessible address.
How to Record a Crypto-to-Crypto Trade as a Simultaneous Disposal and Acquisition with Gain Recognition
Recording a trade of Bitcoin for Ethereum — treated as a disposal of Bitcoin and acquisition of Ethereum.
How to Record Revenue When Cryptocurrency Is Received as Payment for Goods or Services
Recording the receipt of cryptocurrency as payment for goods or services sold.
How to Record Business Expenses Paid in Cryptocurrency as a Disposal Triggering a Gain or Loss
Recording the use of cryptocurrency holdings to pay for business expenses — treated as a disposal of the cryptocurrency.
How to Record Cryptocurrency Pledged as Collateral to Borrow Stablecoins from a DeFi Lending Protocol
Recording cryptocurrency pledged as collateral to borrow stablecoins from a DeFi lending protocol.
How to Test for and Record Impairment of Mining Equipment When Network Difficulty Makes Machines Unprofitable
Recognizing an impairment loss on mining equipment when network difficulty increases make machines unprofitable.
How to Record Interest Income from Lending Cryptocurrency to Institutional Borrowers
Recording interest income earned from lending cryptocurrency to institutional borrowers.
How to Record AML/KYC and Regulatory Compliance Costs for a Cryptocurrency Business
Recording the cost of AML/KYC compliance, licensing, and regulatory reporting for a cryptocurrency business.
How to Record a Protocol's Repurchase of Its Own Governance Tokens from the Open Market
Recording the repurchase of the protocol's own governance tokens from the open market.
How to Expense a Third-Party Smart Contract Security Audit as a Period Cost
Recording the cost of a third-party security audit of a DeFi protocol's smart contracts.
How to Record a Central Bank Digital Currency Settlement Balance Held by a Financial Institution
Recording a balance of Central Bank Digital Currency (CBDC) held by a regulated financial institution for settlement purposes.
How to Accrue Income Tax on Realised Cryptocurrency Disposal Gains
Accruing income tax on realised cryptocurrency disposal gains.
How to Record Employee Salary Paid in Cryptocurrency as Both an Expense and a Disposal Event
Recording employee salary paid in cryptocurrency under an elected or negotiated crypto payroll arrangement.
How to Record an Unrealised Bitcoin Fair Value Gain Through Net Income Under ASU 2023-08 (US GAAP)
Recording the unrealised fair value increase on Bitcoin held as a treasury asset under ASU 2023-08 — with ALL changes in fair value flowing through net income, not OCI.
How to Record an Unrealised Bitcoin Fair Value Loss Through Net Income Under ASU 2023-08 (US GAAP)
Recording the unrealised fair value decrease on Bitcoin held as a treasury asset under ASU 2023-08 — recognised immediately in net income with no impairment test required and losses reversible in future periods.
How to Record the ASU 2023-08 Crypto Retained Earnings Adjustment
See an exact journal entry example for early adoption of FASB ASU 2023-08. Learn how to record the crypto cumulative-effect adjustment to retained earnings.
How to Account for Cryptocurrency Held as Inventory by a Broker-Dealer or Market Maker Under IAS 2
Recording cryptocurrency held for trading by a broker-dealer or market maker as inventory under IAS 2 — measured at fair value less costs to sell, with all changes through P&L.
How to Write Down Cryptocurrency Inventory to Net Realizable Value When Market Price Falls
Writing down cryptocurrency inventory to net realizable value when market price falls below the acquisition cost — reversible when prices recover.
How to Record the Mining Pool Operator Fee Deducted from Block Rewards
Recording the fee paid to a mining pool operator — typically 1–3% of mining rewards — deducted directly from pool payouts.
How to Record Mining Co-Location Hosting Fees Paid to a Third-Party Data Centre Operator
Recording fees paid to a third-party data centre operator for hosting and operating mining equipment — a major operating cost for asset-light mining companies that own hardware but rent facility space.
How to Record a Gain or Loss When ASIC Mining Equipment Is Sold on the Secondary Market
Recording the gain or loss when ASIC mining equipment is sold — derecognising the asset at its net book value and recognising any difference from proceeds as a disposal gain or loss.
How to Record Interest Income from Margin Lending to Users for Leveraged Trading Positions
Recording interest income earned by a cryptocurrency exchange from lending funds to users for leveraged trading positions.
How to Record Token Listing Fee Revenue When a Cryptocurrency Exchange Lists a New Token
Recording the fee charged by a cryptocurrency exchange to list a new token for trading — recognised when the listing obligation is fulfilled.
How to Record Cryptocurrency Withdrawal Fee Revenue When Users Move Funds Off an Exchange
Recording withdrawal fees charged by an exchange when users withdraw cryptocurrency from their exchange account to an external wallet.
How to Record Bitcoin Futures Initial Margin as a Restricted Financial Asset Not an Expense
Recording the initial margin deposited with a futures exchange when entering a Bitcoin futures position — classified as a restricted cash or financial asset, not an expense.
How to Record Daily Mark-to-Market Variation Margin Settlements on a Bitcoin Futures Position
Recording the daily cash settlement of gains or losses on a Bitcoin futures position — the variation margin paid or received as the futures price moves, recognised immediately in P&L absent hedge accounting.
How to Record a Bitcoin Option Premium as a Financial Asset at Fair Value Through Profit or Loss
Recording the premium paid for a Bitcoin call or put option — classified as a financial asset at fair value through profit or loss under IFRS 9.
How to Record Perpetual Swap Funding Rate Payments and Receipts as a Separate P&L Item
Recording the funding rate payment or receipt on a Bitcoin perpetual swap — a recurring cash flow that keeps the perpetual swap price anchored to the spot price.
How to Apply IFRS 9 Fair Value Hedge Accounting to Offset Bitcoin Treasury Price Risk Using Futures
Applying IFRS 9 fair value hedge accounting to offset Bitcoin price movements — with both the hedged item (Bitcoin treasury) and the hedging instrument (futures) recognised at fair value through P&L, reducing income statement volatility.
How to Record Impermanent Loss When Withdrawing from a DeFi Liquidity Pool
Recording the impermanent loss crystallised when withdrawing from a DeFi liquidity pool — the economic loss from providing liquidity compared to simply holding the deposited assets.
How to Record Governance Tokens Received as Liquidity Mining Rewards from a DeFi Protocol
Recording governance tokens received as protocol incentives for providing liquidity or staking — the 'yield farming' reward model.
How to Record a Forced DeFi Collateral Liquidation When the Loan-to-Value Ratio Is Breached
Recording the forced liquidation of DeFi loan collateral when the loan-to-value ratio breaches the liquidation threshold — a forced disposal of the pledged cryptocurrency.
How to Apply the IFRS 9 ECL Three-Stage Model to Provision for Expected Credit Losses on Cryptocurrency Loans
Recording the expected credit loss provision on cryptocurrency loans receivable — applying the IFRS 9 three-stage ECL model to institutional crypto lending portfolios.
How to Record Cryptocurrency Collateral Seizure and Loan Write-Off When a Borrower Defaults
Recording the seizure of cryptocurrency collateral when a borrower defaults on a crypto loan — derecognising the loan receivable and recognising the seized collateral at fair value.
How to Account for a Bitcoin Repo as a Secured Borrowing Rather Than a True Sale Under IFRS 9
Recording a repurchase agreement (repo) where Bitcoin is sold today with a contractual obligation to repurchase at a fixed price — treated as a secured borrowing, NOT a true sale.
How to Record Employee Token Grants as Share-Based Payments Under IFRS 2
Recording a grant of company governance or utility tokens to employees as compensation — applying IFRS 2 Share-Based Payment with the token's grant date fair value amortised over the vesting period.
How to Record the Delivery of Vested Tokens to an Employee Including Payroll Tax Withholding
Recording the delivery of tokens to an employee upon vesting — converting the token reserve in equity to tokens issued at fair value, with any tax withholding obligation.
How to Measure Employee Token Option Grants at Grant Date Fair Value Using Black-Scholes Under IFRS 2
Recording token option grants to employees — where the option to purchase company tokens at a fixed strike price is measured at grant date using an option pricing model.
How to Record In-Game Utility Token Sale Proceeds as Deferred Revenue Before the Game Launches
Recording the proceeds from selling in-game utility tokens before the game launches as deferred revenue, with the developer having not yet delivered the in-game utility.
How to Record Token Rewards Paid to Players in a Play-to-Earn Game as an Operating Expense
Recording the cost of governance or utility tokens distributed to players as rewards in a play-to-earn game — the developer's cost of delivering the game's economic model.
How to Capitalize Virtual Land NFT Creation Costs as an Internally Developed Intangible Asset Under IAS 38
Capitalizing the costs incurred by a metaverse platform developer to create virtual land NFTs — treated as an internally developed intangible asset under IAS 38.
How to Record Security Token Offering Proceeds as Equity When Tokens Represent Ownership Interests
Recording proceeds from a Security Token Offering where the tokens represent equity interests in the company — classified as equity under IAS 32.
How to Record a Charitable Bitcoin Donation as Both a Disposal at Fair Value and a Charitable Expense
Recording the donation of Bitcoin to a charitable organisation — treated as a disposal at fair value (triggering gain recognition) with a corresponding charitable expense.
How to Write Off Exchange Balances and Assess Contingent Claims When a Crypto Exchange Becomes Insolvent
Recording a contingent asset arising from a customer's claim against an insolvent cryptocurrency exchange — recognised only when recovery is virtually certain.
How to Record an Intercompany Cryptocurrency Transfer Within a Consolidated Group and Eliminate It on Consolidation
Recording the transfer of Bitcoin from a parent entity to a subsidiary entity within the same consolidated group — with intercompany elimination required at consolidation.
How to Record a Deferred Tax Liability on Unrealised Cryptocurrency Fair Value Gains Under ASU 2023-08 or the Revaluation Model
Recording the deferred tax liability arising when cryptocurrency fair value gains are recognised in financial statements before being taxed — under the US GAAP ASU 2023-08 FV model or IAS 38 revaluation model.
How to Record Flash Loan Fee Income Earned by a DeFi Protocol on Uncollateralised Atomic Transactions
Recording fee income earned by a DeFi lending protocol from providing uncollateralised flash loans — atomic transactions where borrowing and repayment occur within the same blockchain block.
How to Record a Tokenised Bond Issuance as a Financial Liability at Amortised Cost Under IFRS 9
Recording a bond issued in tokenised form on a blockchain — the issuer's accounting is identical to a traditional bond, classified as a financial liability at amortised cost under IFRS 9.
How to Calculate and Record NAV for a Cryptocurrency Investment Fund Under Investment Company Accounting
Recording the periodic NAV (Net Asset Value) calculation for a cryptocurrency investment fund — where all holdings are measured at fair value and changes flow through the income statement.
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