AN INSIGHT INTO CRYPTO-CURRENCY ACCOUNTING UNDER INDIAN ACCOUNTING FRAMEWORK VIS-À-VIS INTERNATIONAL ACCOUNTING FRAMEWORK AND US-GAAP

Abstract

In the last decade, the market size of cryptocurrencies multi-folds, as more and more individuals and businesses including investment entities shown interest in this asset class. Despite ambiguity due to the dicey stand of regulators towards cryptocurrency, across the world; there are around 21,581 Cryptos traded over 521 exchanges, with a market value above $1 trillion as on 31st October 2022. This also makes accounting for cryptocurrency a much debatable concern among accounting professionals in addition to holders (as well as miners) of crypto-currency units, especially in absence of specific standards and guidelines on recognition, measure, and presentation of crypto assets in books of accounts. This article evaluates the existing Indian Accounting Frameworks vis-à-vis International Accounting Framework and US-GAAP to suggest the accounting for cryptocurrencies in the books of the holder from three perspectives, the Trader, Investor, and Miners’ perspective.