IFRS compliance

IFRS Compliance for Crypto-Assets

Blockchain has introduced new ways of transferring and storing value, but the objective of financial reporting has not changed. Crypto-assets still have to be classified, measured, presented and disclosed under IFRS — and the standards were not written with digital assets in mind.

Financial reporting
Crypto under IFRS
IFRS compliance

Where the judgement sits

There is no single IFRS standard for crypto-assets, so treatment follows from what the asset is and why it is held. That drives classification, the measurement basis, and the accounting policies an entity has to develop and apply consistently.

Revenue is the other pressure point. For a Crypto-Asset Service Provider, deciding when and how revenue should be recognised under the IFRS 15 five-step model is considerably more complex than in a traditional business, particularly where fees are taken in crypto or performance obligations span multiple services.

Newer activity adds a further layer. Many businesses now run staking, validator nodes and DeFi positions alongside exchange and custody services, and each raises its own recognition, measurement and disclosure questions.

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