EFRAG's Recommendations and Feedback Statement on Accounting for Crypto-Assets (Liabilities)

EFRAG published the EFRAG DP in July 2020 with a request for comments by 31 July 2021.  The EFRAG DP reviewed the accounting challengers for crypto-assets (liabilities) without presenting an EFRAG position. The Recommendations and Feedback Statement includes EFRAG's recommendations for developing IFRS requirements for crypto assets (liabilities). These recommendations are based on the feedback received to the DP. EFRAG has received and considered 12 comment letters on the DP as well as 29  survey responses. Based on this information the recommendations have been developed by the EFRAG Financial Reporting TEG and EFRAG Financial Reporting Board.

In the Recommendations and Feedback Statement, EFRAG supports the EFRAG DP’s Option 2 (clarify or amend existing Standards) using a two-step approach. As a first step of amending and clarifying existing IFRS requirements, EFRAG recommends addressing the accounting requirements for holders of crypto-assets by amending IAS 38 Intangible Assets to allow FVPL for crypto-assets or other intangibles within the scope of that Standard and develop disclosure requirements for issuers. As a second step EFRAG considers that it is important to also address issuer accounting in more detail and determine the appropriate accounting requirements for issuers, given the challenges that arise from the ambiguity on the nature of rights and obligations associated with the issuance of the novel and fast-moving crypto transactions. 

The Recommendations and Feedback Statement can be accessed here. 

The EFRAG DP can be accessed here.