Bitcoin has been introduced in 2008 as an alternative to fiat currencies. Ever since its price has shown an upward trend with tremendous volatility. Currently, it is listed at approximately $50.000. A number of other cryptocurrencies have been introduced on the blockchain, including tokens that, different from coins, have a utility purpose: They provide a specific service or access to a platform.
While public companies have been really skeptical about the crypto world at first, now they are slowly accepting this innovation. As a result, some important companies have started investing in cryptocurrencies, as you can read in the attached article.
However, both the FASB and the AICPA haven’t caught up with this innovation yet, and the accounting treatment of cryptocurrencies is still unclear.
Discuss in class with respect to accounting for investments, and also based on what you learned in ACC 311 with respect to Intangible Assets and Cash and cash equivalents how would you account for a purchase of cryptocurrency? In other words, what would be your proposal to FASB for the accounting treatment of cryptocurrencies?