DIGITAL ASSETS AND DIGITAL CURRENCIES: IDENTIFICATION ISSUES IN ACCOUNTING AND FINANCIAL REPORTING

Abstract

The article is devoted to the issues of accounting policy formation in relation to relatively new objects, which are digital assets and digital currencies used by organizations for various purposes. Currently, even basic issues regarding the qualification of a digital asset and digital currency as objects of accounting and reflection in financial statements remain unresolved. Despite the growing volumes of actual transactions with digital assets, there is no unambiguous regulation for their reflection in the accounting system. This situation leads to many problems that are individually solved by each organization, which entails a bias in reflecting the financial position and financial results in the financial statements, which in turn indicates non-compliance with legislation and standards regarding the reliability of the reporting entity's data. One of the main issues is the justification of a set of characteristics that would make it possible to qualify a digital asset as an appropriate accounting object, referring it to an existing accounting category or highlighting it as an independent accounting object. To do this, it is necessary first of all to define such an object, the formulation of the characteristics of which would give a clear understanding of this accounting object as such.