Financial Accounting of Crypto Assets and Tokens: Classification, Valuation and Disclosure in Reporting

Abstract

Abstract: The article focuses on the financial accounting of crypto assets and tokens with an emphasis on their classification, valuation methods, and disclosure specifics in financial reporting. The purpose of the study is to identify the peculiarities of interpreting crypto assets in different jurisdictions, to outline modern approaches to their valuation, and to analyze the challenges of transparency and comparability of reporting. The research employed general scientific methods of cognition: analysis and synthesis, induction and deduction, comparison, generalization, and a systematic approach. The findings show that the essence of crypto assets and tokens lies in their multifunctionality and ability to perform different economic roles depending on the context of use. It is concluded that in international practice, particularly under the MiCA regulation, crypto assets are divided into three main groups: electronic money tokens, asset-referenced tokens, and other crypto assets, which include cryptocurrencies, utility tokens, and NFTs. The study demonstrates that in the field of crypto asset valuation, current practice is based on the provisions of international accounting standards and includes various approaches: historical cost, fair value through profit or loss, fair value through other comprehensive income, as well as cost and revaluation models under IFRS. It is highlighted that the high volatility of the market increases the relevance of fair value-based models, although they create risks for the stability of financial results. It is proven that the introduction of ASU 2023-08 in the United States became a crucial step toward adequate reflection of crypto asset value, as it enabled the recognition of both gains and losses from price changes. The practical significance of the study lies in the possibility of applying its findings to improve methodological approaches to accounting, valuation, and reporting of crypto assets in both national and international practice.