CPA Voice: Cryptocurrency accounting arrives

Written on Dec 19, 2019

“The July 2019 declaration by Overstock.com of a dividend to be paid in cryptocurrency had many investors scrambling to address accounting and reporting issues that would be posed by receiving these digital shares,” writes Laura Hay, CPA, CAE, in the November/December issue of CPA Voice.

In this issue, Hay spoke with Lauren Stuntebeck, CPA, vice president in the fund administration industry on the issues that need to be addressed when accepting these funds. These include custody, valuation, trading accounts and little guidance.

With very little guidance on how to treat these assets, many companies are trying to figure it out on their own. Here are some common takeaways:

  • Cryptocurrency is not a currency, nor is it a legal tender backed by the government.
  • Cryptocurrency is a volatile asset.
  • Advisers urge high transparency in disclosures regarding risks and uncertainties related to cryptocurrency assets.
  • The IRS has stated that cryptocurrency will be treated as property for tax purposes.

To learn more about how to treat cryptocurrency, click here for the full article.

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Best of all, you can take the exam when and where it’s convenient for you. Exams remain available online – and may be completed for CPE – through the same month of the following year.

November/December 2019 exam

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