Welcome to the final installment of our six-part series on cryptocurrency accounting under IFRS. We’ve covered substantial ground together. This includes understanding why cryptocurrencies don’t qualify as cash or financial instruments. We’ve examined the mechanics of IAS 2 inventory treatment and IAS 38 intangible asset classification. Additionally, we’ve explored the complexities of fair value measurement and disclosure requirements.
Throughout this series, we’ve examined the current IFRS framework. However, here’s the uncomfortable truth. We’ve essentially been discussing how to navigate a system that even the standard-setters acknowledge isn’t working properly.
Today, we’re going to confront that reality head-on. We’ll examine the critical limitations in current accounting models for cryptocurrencies. Moreover, we’ll explore significant developments happening at the IASB and how US standard-setting is creating divergence issues. Most importantly, we’ll help you prepare for what’s coming. Change is finally on the horizon. Consequently, if you’re holding crypto assets or considering adopting digital currencies for payments, you need to understand where cryptocurrency accounting standards are headed.
The Cracks in the Foundation: Why Current Cryptocurrency Accounting Standards Are Failing
Let’s be blunt about something. The accounting profession has been playing catch-up with cryptocurrencies since Bitcoin’s inception in 2009. We’re still miles behind.
Academic researchers have a term for what’s been happening at the IASB since their 2019 Interpretations Committee decision: “regulatory inertia.” That’s a polite way of saying the Board acknowledged cryptocurrencies exist. They told us to classify them as intangible assets under IAS 38. Then… nothing happened for years.
IAS 38 Cryptocurrency Accounting Standards: Outdated for Digital Assets
The February 2025 stakeholder consultation revealed what practitioners have been emphasizing. IAS 38 is “outdated” for investment-type digital assets like cryptocurrencies. This standard was developed for patents, copyrights, and software. These are things that generate value through use. Cryptocurrencies don’t fit that mold at all.
Think about the real-world implications. Consider an exploration company that allocated a portion of idle treasury to Bitcoin in 2024. The purpose was to preserve capital between financings. Under current IFRS, you record that Bitcoin as an intangible asset using the cost model.
What happens when Bitcoin’s price doubles? Your financial statements show nothing. What about when Bitcoin’s price crashes 40%? You’re recognizing impairment losses that tank your profitability metrics. But when it recovers? Still nothing appears in your financials.
The One-Way Street Problem
This one-way street accounting creates significant issues. Losses are recognized immediately. However, gains are ignored entirely. Consequently, financial statements don’t faithfully represent economic reality. The problem becomes even worse if you’re a multinational entity.
The IFRS-GAAP Divergence in Cryptocurrency Accounting Standards
Here’s where things get really messy. The US moved first on this issue. FASB’s Accounting Standards Update 2023-08 became effective for fiscal years beginning after December 15, 2024. This means US companies are now required to measure certain crypto assets at fair value. Changes flow through earnings every reporting period.
Meanwhile, IFRS companies face a different reality. They’re still stuck with IAS 38’s cost model for most holdings.
Comparing Incomparable Financial Statements
Picture this scenario. An analyst is comparing two junior gold exploration companies. One is Canadian, the other American. Both have similar operations. Both hold Bitcoin as part of treasury management.
The US company reports Bitcoin at fair value of $50,000 per coin. The Canadian company, using IFRS, reports the same Bitcoin at historical cost of $30,000, less any impairment. Same asset. Similar companies. Completely incomparable financial statements.
Dual-Listed Companies Face Additional Complexity
For Canadian companies that are dual-listed on both the TSX and US exchanges, this creates additional complications. This situation is common in the mining sector. Investors looking at the same company across different jurisdictions encounter reporting challenges. Consequently, companies may require reconciliation or supplementary disclosures. These must meet SEC expectations while maintaining IFRS compliance for Canadian regulators.
This isn’t theoretical. Q2 2025 data showed a 58% increase in publicly listed companies holding Bitcoin. That’s a massive surge in corporate crypto adoption. Moreover, it’s happening right as the IFRS-GAAP divergence is at its widest point. Canadian companies are being forced to consider voluntary fair value disclosures in their IFRS statements. This maintains comparability with US peers and meets investor expectations.
Finally—Movement at the IASB on Cryptocurrency Accounting Standards
But here’s the good news. Honestly, it’s about time. The IASB’s November 2025 Agenda Paper 8B confirmed that addressing cryptocurrency accounting has “received strong support” for addition to the Board’s work plan.
After six years of inertia, the international standard-setters are finally acknowledging something important. The problems with applying IAS 38 to cryptocurrencies need resolution. The IASB is addressing crypto accounting as part of a broader Intangible Assets project. This project aims to review and update IAS 38 to better handle intangible assets held for investment purposes. Cryptocurrencies serve as key test cases in this review.
FASB and IASB Coordination on Cryptocurrency Accounting Standards
Interestingly, the Financial Accounting Standards Board (FASB) launched a research project in August 2025. This explores whether payment stablecoins might qualify as cash equivalents. This directly challenges the 2019 IFRIC position that excluded all cryptocurrencies from IAS 7. The October 2025 FASB-IASB joint education meeting signals these two bodies are finally coordinating on crypto accounting. That’s encouraging.
Timeline Uncertainty Remains
The catch? Timeline uncertainty persists. The IASB will add the Intangible Assets project (including crypto considerations) to their active work plan “as capacity becomes available.” This likely means 2026 or later. Then you’re looking at exposure drafts, comment periods, deliberations, and eventual issuance of an updated IAS 38. We’re realistically talking 2028-2030 before revised intangible asset guidance that properly addresses crypto becomes effective.
Practical Steps for Companies Navigating Cryptocurrency Accounting Standards
If you’re a CEO dealing with crypto accounting issues, you can’t wait for standards to catch up. You need to act now.
Prepare Systems for Evolving Cryptocurrency Accounting Standards
First, consider your current situation. If you have crypto holdings or are considering accepting digital currencies, prepare your systems now. Eventual fair value requirements are coming. That means establishing relationships with reputable exchanges for pricing data. Additionally, implement custody verification procedures. Build governance controls around crypto transactions.
Consider Voluntary Fair Value Disclosures
Second, recognize that the voluntary disclosure route might be necessary sooner than you think. Even under IFRS, you may need to provide supplementary fair value information. This keeps investors satisfied and maintains comparability with industry peers using US GAAP.
Partner with Experts in Cryptocurrency Accounting Standards
Third—and this is critical—ensure you’re working with financial professionals who understand this evolving landscape. The fractional CFO who drops last-minute financial statements in your inbox isn’t monitoring IASB agenda papers or FASB research projects. They’re not thinking about how stablecoin classification might affect your cross-border payment strategy. Moreover, they’re not considering whether your crypto custody arrangements meet emerging best practices.
Preparing for What’s Next: NFTs, DeFi, and CBDCs
The accounting challenges we’ve discussed in this series represent just the beginning. We’ve covered Bitcoin, Ethereum, and altcoins. However, the crypto ecosystem is evolving rapidly. Accounting standards need to address new developments.
Non-Fungible Tokens Present Classification Challenges
NFTs (Non-Fungible Tokens) are unique digital assets. They don’t fit neatly into inventory, intangible assets, or any existing category. Are they works of art? Investment property? A new asset class entirely? Current cryptocurrency accounting standards provide no guidance.
Decentralized Finance Lacks Accounting Framework
DeFi (Decentralized Finance) presents another challenge. When you stake crypto in a liquidity pool or lend through smart contracts, how do you account for the underlying asset? What about the rewards? And the smart contract itself? Current standards offer no guidance whatsoever.
Central Bank Digital Currencies Require Clarity
CBDCs (Central Bank Digital Currencies) make the accounting treatment even more critical. As central banks launch digital currencies, questions arise. If the Bank of Canada issues a digital Canadian dollar, would that qualify as cash under IAS 7? It should. However, the standards don’t address it yet.
The companies that will thrive in this environment are those preparing now. They’re not scrambling later. That means building internal expertise. Additionally, it requires investing in proper systems. Furthermore, it involves partnering with advisors who understand both the current requirements and the likely future direction.
Conclusion
Throughout this six-part series, we’ve navigated cryptocurrency accounting under current IFRS standards. We’ve explored why digital assets don’t qualify as cash or financial instruments, examined IAS 2 and IAS 38 treatment, and confronted critical limitations in existing frameworks.
The landscape is changing. The IASB’s 2025 momentum shift signals that dedicated cryptocurrency accounting standards are finally approaching, though still years away. Meanwhile, the IFRS-GAAP divergence creates comparability challenges, and emerging assets like NFTs and DeFi push boundaries further.
Cryptocurrency accounting isn’t basic bookkeeping—it’s specialized financial leadership requiring deep technical knowledge. Don’t let inadequate financial support hold your exploration company back or expose you to unnecessary risks.
For exploration-focused financial guidance on cryptocurrency accounting standards and mining industry challenges, contact CFO+ Boutique.