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Accounting for the purchase of cryptocurrency

Cryptocurrency on the balance sheet and gains in value

Hello,

I would like some advice on the best way to account for a company's "investment" in cryptocurrency, such as Bitcoin. I have read guidance from PWC that the purchase should be treated as an intangible asset. Do you agree? 

Also, how should the gains/losses in fair value be treated? Would these be taxable?

I look forward to your opinions. Thanks. 

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20th Oct 2017 12:22

I would treat it the same as a foreign bank account with the value held as cash and any fluctuations in value to the P&L as exchange gains/losses but I expect PWC have done more work on BitCoin than I have so perhaps I need to re-evaluate, should a prospector darken my threshold.

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