How should I report Bitcoin transactions in my company accounts?

I am in the process of setting up an online shop and I'd like to try Bitcoin (see http://bitcoin.org for details) instead of the traditional credit card and PayPal approach. What would you recommend as a good way to track and report the value of any bitcoins I may hold so that I can submit accurate accounts at the year end? Is it simply the same as a foreign currency, or something else?

Some background notes:

Bitcoin has a lot of volatility within a deflationary currency model

Bitcoin transactions of fractions of a penny are common with bitcoins commonly denoted to 8dp which is unusual for standard accounting software

Thanks for any answers

Comments
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They're just another currency

The Limey |

Verifiable reference for exchange rate?

gary_rowe |

Hi Gary,

The Limey |

I'm sure that as Bitcoin

gary_rowe |

I think you'd have to treat

The Limey |

Why I'd stay long on bitcoins

gary_rowe |

Interesting, hadn't realised

The Limey |

A note on the supply chain

gary_rowe |

Not debtors

jonbryce |