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Foreign company practices and Azerbaijan’s approach are reviewed.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & 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\nSultan Gurban Niftaliyev  \nPhD Student, Azerbaijan State University of Economics (UNEC), Lead Analyst of the Underwriting of SME and Corporate Loans Department, Kapital Bank ASC, Baku, Azerbaijan;  \ne-mail: [sultanniftaliyev69@gmail.co](sultanniftaliyev69@gmail.com)[m](sultanniftaliyev69@gmail.com)  \nORCID: 0000-0002-0887-5210  \n(Corresponding author)  \nReceived: 03/04/2023  \nAccepted: 11/05/2023  \nPublished: 30/06/2023  \n© Copyright  \n2023 by the author(s)  \nThis is an Open Access article distributed under the terms of the Creative Commons CC-BY 4.0  \nPROBLEMS ARISING IN THE ACCOUNTING OF CRYPTOCURRENCIES  \nABSTRACT  \nThe study provides detailed information about the cryptocurrency market as an IFRS object and indicates the methods of their accounting and their features. Data on the change in the total market capitalization of cryptocurrencies are shown, and the reasons for which they went into decline are revealed. Companies that may be interested in accounting for cryptocurrencies under IFRS are considered, as well as the official guidance of the IASB on the issue of accounting and reporting of cryptocurrencies, issued several years ago, is analyzed. Two standards IAS 38 \"Intangible Assets\" and IAS 2 \"Inventories\" are analyzed and the reasons why for which the company's cryptocurrency is mainly accounted for either as part of intangible assets or as part of inventories. The foreign experience of some companies that reflect the cryptocurrency according to IFRSis studied, as well as Azerbaijan's practice in this area is considered. Accounting standards have not yet been fully developed, as cryptocurrency has different characteristics from traditional financial assets. Therefore, businesses may experience uncertainty regarding the accounting of cryptocurrency. It is important for businesses to maintain proper accounting records regarding cryptocurrency. These records help businesses meet their tax obligations related to the purchase, sale and exchange of cryptocurrency. However, it can be difficult to find staff with adequate knowledge of accounting and recording cryptocurrency.  \nKeywords: cryptocurrency, IFRS, intangible asset, reserves, IASB, accounting  \nJEL Classification: M41, M48, M49  \nINTRODUCTION  \nThe digitalization of the economy has a significant impact on the development of the financial accounting and reporting system, changing the technologies for collecting and analyzing data, ways business reporting and communication compilers and users of financial statements. New accounting objects appear, such as, for example, digital currencies that require the development of a methodology for their accounting and reflection in financial statements. In this regard, the study of issues related to the consideration of cryptocurrencies as an object of international financial reporting standards (IFRS) is relevant.  \nLITERATURE REVIEW  \nCryptographic assets (Brukhanskyi and Spilnyk, 2019: 384) [3] that emerge as a result of the digitization of the economy, earn their trust, defy established economic laws, destroy traditional ideas and demand radical changes in business processes (Brukhanskyi and Spilnyk, 2019: 384) [3] are in a peer-to-peer network designed to prohibit their copying or duplication. They are decentralized and transferable digital representations that use the “blockchain” or distributed ledger technology infrastructure that keeps track of all transactions that occur and encrypts information.  \nCryptographic assets are characterized by their ability to be used as a medium of exchange, as a representation to provide or access goods or services, or as a means of financing such as securities. With these capabilities, the crypto ecosystem provides new opportunities that allow payments and other financial services to be cheaper, faster and  \nmore accessible, allowing it to go beyond borders rapidly, and helps the emergence of a new decentralized transaction model [4, p.94] .  \nOn","cbCaimEEPvCY1h9B","https://ap.wps.com/l/cbCaimEEPvCY1h9B","pdf",388768,11,"English","# Abstract\n# Introduction\n# Literature Review\n## Cryptographic assets and blockchain infrastructure\n## Risks, regulation, and accounting implications","[{\"question\":\"Why is cryptocurrency accounting under IFRS considered relevant?\",\"answer\":\"Digitalization creates new accounting objects such as digital currencies, requiring accounting methodology development and appropriate financial-statement reflection under IFRS.\"},{\"question\":\"Which IFRS standards are analyzed for cryptocurrency accounting?\",\"answer\":\"The study analyzes IAS 38 “Intangible Assets” and IAS 2 “Inventories” to explain how companies may account for cryptocurrency.\"},{\"question\":\"What challenges can businesses face when accounting for cryptocurrencies?\",\"answer\":\"Accounting standards are not fully developed because cryptocurrency differs from traditional financial assets, creating uncertainty and making it difficult to find staff with adequate accounting knowledge.\"}]","PROBLEMS ARISING IN THE ACCOUNTING OF CRYPTOCURRENCIES - Study under IFRS - methods, standards, and practice | PDF",28]