Guidance on Disclosing Cryptocurrency Holdings: Case Studies of Companies Listed on Stock Exchange of Thailand
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Abstract
This article provides guidance on disclosure for companies holding cryptocurrency, as discussed by the agenda decision published by the International Financial Reporting Standards (IFRS) Interpretations Committee. A comparison was made between the definition of cryptocurrency as stipulated in the Emergency Decree on Digital Asset Businesses B.E. 2561 and the accounting definition. This article offers disclosure guidance for companies holding cryptocurrencies in three cases. Firstly, companies hold cryptocurrencies for sale in the ordinary course of business. Secondly, when cryptocurrencies are held by a commodity broker-trader and thirdly, when companies consider cryptocurrencies as a long-term investment. Examples of disclosures by three companies are presented regarding their objectives in holding cryptocurrencies, applicable accounting policies, and financial reporting standards applied to the cryptocurrencies held. Only one company disclosed additional information on the types of digital assets held, and the methodology used for valuing cryptocurrencies. The article involved a comparison of disclosure examples, presented as notes in the financial statements of companies listed on the stock exchange of Thailand, which invested in and held cryptocurrencies. This article suggests critical aspects of financial reporting disclosure in accordance with established standards and offers recommendations for accounting practitioners. Additionally, it highlights potential areas for future research in the field.
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