Limited company client purchased crypto currency at the back end of the previous years accounts and I recorded this under intangible assets.at cost.
In this current present year of account its value has dropped dramatically but still has a value and so it is not of neglible value.
Reading latest blogs on the accounting/tax treatment of crypto currency, it seems that I should or could have recorded the crypto currency purchase and its value in the previous accounts as closing stock and so opening stock this year and: as current value closing stock so that the loss passes through the trading, profit and loss account and so is subject to trading rules and not CGT regime. Each year I would ask the client for a current valuation and include this as closing stock.
The client has said 'he will hold the crypto currency for at least 5 years as he does not want to crystallise a loss and so sees this purchase as an investment.'
The crypto currency is NOT part of the trading activities of the limited company.
So, am I answering his question by recording as an intangible asset or should I record the purchase and subsequent valuations as oping/closing stock which passes thorugh the trading account?