Cryptocurrency Adoption in Accounting: Challenges in Fair Value Measurement, Financial Reporting, and Accounting Information Systems

Abstract

The rapid growth of cryptocurrencies has created significant challenges for financial reporting systems that were not designed for decentralized and highly volatile digital assets. This study examines how publicly listed companies recognize, measure, and disclose cryptocurrencies in their financial statements under IFRS and U.S. GAAP, while also exploring the role of Accounting Information Systems (AIS) in supporting cryptocurrency accounting practices. Using a qualitative, interpretivist approach, the study conducts content analysis of audited annual financial statements from six cryptocurrency-exposed companies: Tesla, MicroStrategy, CleanSpark, Riot Platforms, Galaxy Digital, and PayPal. The analysis focuses on accounting policies, asset classification, measurement methods, impairment treatment, disclosure practices, risk reporting, and AIS capabilities. The findings reveal a strong tendency to classify cryptocurrencies as intangible assets, while excluding them from cash and financial instrument categories. However, differences remain in measurement and disclosure practices. Overall, the study contributes to the growing literature on cryptocurrency accounting by providing evidence from actual corporate reporting practices and highlighting ongoing challenges related to comparability, transparency, and system readiness.

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