EFRAG Research project on Crypto-Assets
- Research phase
- Isabel Batista, Vincent Papa
Objective of the EFRAG research project
Following the EFRAG 2018 Research Agenda consultation, the EFRAG Board approved the inclusion of a research project on crypto-assets in EFRAG's workplan.
The research project conducted from late 2018 through to 2020 consisted of a problem definition and development of proposals for developing or clarifying IFRS requirements. As part of the research, the EFRAG Secretariat conducted an outreach to crypto-assets experts in Q4 2019.
A Discussion Paper (DP) “Accounting for crypto-assets (liabilities): holder and issuer perspective” was published in July 2020 and is open for a 12-month consultation period until 31 July 2021. The DP sets out three possible options for developing IFRS requirements:
- Option 1: No amendment to current applicable IFRS Standards. In effect, preparers will continue to apply existing IFRS including having to develop their own accounting policy (IAS 8).
- Option 2: Amend and/or clarify IFRS Standards – this option proposes that several amendments or clarification guidance to current IFRS Standards (such as IAS 38, IAS 2, IAS 32, IAS 7, IAS 37, IFRS 9, IFRS 13 and IFRS 15) might be needed for the accounting by holders and issuers of crypto-assets (liabilities).
- Option 3: A new IFRS Standard to address crypto-assets (liabilities) with a possibility to also cover digital assets (liabilities) – this option would require developing a new standalone IFRS Standard for crypto-assets (liabilities).
The DP seeks stakeholders’ feedback on the above three and/or any other option that could be considered in developing IFRS requirements. The DP also seeks feedback on the identified challenges related to accounting by holders and issuers and valuation of crypto-assets.
The outreach activities on the DP commenced in Q4 2020 and will be ramped up in H1 2021. As part of the outreach, EFRAG presented the DP to the International Forum of Accounting Standard Setters (IFASS) in September 2020 and to the Accounting Standards Advisory Forum (ASAF) in December 2020.
Publications open for comments
20/07/2020 - EFRAG's Discussion Paper on the accounting for crypto-assets (liabilities) - holder and issuer perspectiveEFRAG has published a Discussion Paper to gather constituents' views on the accounting for crypto-assets (liabilities) from a holder and issuer perspective. Comments are welcome throughout a 12-month period from the date of issuance until 31 July 2021. Comments provided earlier during the consultation period will be welcome. The consultation period caters for constituents’ impacted priorities and any constraints faced due to the current pandemic. It also allows EFRAG sufficient time to obtain as much feedback as possible.
04/09/2019 - Call for input from crypto-assets experts'
EFRAG is seeking input from crypto-assets experts' on its research project with the objective of identifying and proposing solutions for accounting challenges that are not addressed within existing IFRS Standards.