Accounting Information System Problems with Bitcoin

[klassicdoll]

In the contemporary world, Bitcoin is growing in popularity. Some believe that this cryptocurrency will eventually take the place of money. Still, there are a lot of issues with accounting information systems that are linked to the use of Bitcoin. Transparency is a problem, among other issues. Data about businesses and their operations is one of the components of accounting information systems; thus, it is challenging to track this without transparency. Furthermore, the volatility of cryptocurrency prices makes it more difficult to maintain correct accounting records for the purpose of calculating the asset's fair market value. Financial reporting becomes difficult as a result, particularly if one needs to audit or rely on these financial statements.

What is your opinion on this?

 

[Suba]

As many institutions or companies adopt Bitcoin, many countries have issued accounting standards for crypto, as well as the FASB which has issued a statement regarding cryptocurrency which is measured based on fair value. Bitcoin or cryptocurrency will be recorded on the Ba;amce sheet as intangible assets based on value. acquisition and capital gain/loss will be recorded on the income statement.

 

[Stardom22]

I think that the bitcoin has a very long way to go before it can at all replace the use of fiat money. Some countries are still banning the use of the crypto currency in their countries.

 

[Suba]

Not that Bitcoin can replace fiat money, but this thread discusses accounting for Bitcoin, because in fact Bitcoin can never replace fiat money as the identity of a country, by just knowing the fiat money symbol we will be able to immediately guess the country correctly.