Cryptocurrency is a virtual currency that can be transacted online and some countries have unclear regulations. Cryptocurrency has several advantages including easy to use, can be sent anywhere and anytime, high data security and low transaction costs. Cryptocurrency as a financial transaction system and as a digital currency is a relatively new technology in Indonesia and needs further research and study, especially for accounting for Cryptocurrency transactions. Recognition of cryptocurrencies in Indonesia may refer to:
Cryptocurrency as cash or financial instruments Accounting standards when cryptocurrencies are declared cash or cash equivalents according to PSAK 50 pp 03 cash is a financial asset which is a medium of exchange. Although cryptocurrencies are used for payments, cryptocurrencies are not yet considered a legal medium of exchange in several countries, including Indonesia. cryptocurrency is used as an investment if it is entered as a financial instrument, but cryptocurrency does not fulfill the contractual terms to receive other financial assets because cryptocurrency is considered as gold bullion which cannot be considered a financial instrument even though it is liquid.
Cryptocurrencies as intangible assets or inventories PSAK 19 accounting standard when cryptocurrencies cannot be considered intangible assets such as goodwill, royalties, patents, software and others. cryptocurrency, if accepted as a means of payment, will comply with PSAK 58 as an asset available for sale. If an entity that uses cryptocurrency acts as a trader or broker, then cryptocurrency is considered a stock according to PSAK 14, in this case cryptocurrency is considered as gold bullion,
Cryptocurrency as a foreign currency and base currency PSAK 10 standard Cryptocurrency is considered a foreign currency, however cryptocurrency does not meet the requirements as a functional currency. cryptocurrency as a base currency has not met the requirements because not all countries have legalized cryptocurrency as a means of payment, only six countries have legalized cryptocurrency as a means of payment so that cryptocurrency cannot be said to be a base currency. It can be said that Cryptocurrency is not a legal and official currency because there is no authorized authority to issue and regulate it so that accountability is still in doubt
IFRS and PSAK are felt to lack guidance on intangible assets owned for investment such as carbon emissions which in some countries are actively traded and also PSAK and IFRS do not regulate commodities such as gold bullion. Cryptocurrency ownership specifically is still not regulated in financial accounting standards so that there are certain interpretations that result in several challenges in classification and measurement. This research concludes that based on IFRS and PSAK financial accounting standards, Cryptocurrencies can be considered as assets, because Cryptocurrencies meet the definition and criteria of assets, have adequate control, and have certain future economic benefits.
Notes : Indonesian PSAK was adopted from IFRS