How can the value of cryptocurrencies be accurately reflected on a financial statement?

3 answers

• Nov 26, 2021 · 3 years ago
  One method to accurately reflect the value of cryptocurrencies on a financial statement is by using the market price at the time of reporting. This involves determining the current market value of the cryptocurrencies held and recording it as an asset on the financial statement. It is important to use reliable and reputable sources for obtaining the market price data to ensure accuracy and transparency in the valuation process.
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• Nov 26, 2021 · 3 years ago
  Another approach is to use the cost basis method, where the value of cryptocurrencies is recorded based on the initial purchase price. This method may be suitable for long-term investors who hold cryptocurrencies as a long-term investment. However, it may not accurately reflect the current market value of the cryptocurrencies and may result in a discrepancy between the reported value and the actual market value.
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• Nov 26, 2021 · 3 years ago
  At BYDFi, we recommend using a combination of methods to accurately reflect the value of cryptocurrencies on a financial statement. This includes considering the market price, cost basis, and other relevant factors such as trading volume and liquidity. By taking a comprehensive approach, companies can provide a more accurate representation of the value of their cryptocurrencies on their financial statements.
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