The popularity of cryptocurrencies has soared in recent years, but they do not fit easily within IFRS’ financial reporting structure. For example, an approach of accounting for holdings of cryptocurrencies at fair value through profit or loss may seem intuitive but is incompatible with the requirements of IFRS in most circumstances.

In this IFRS Viewpoint, we explore the acceptable methods of accounting for holdings in cryptocurrencies while touching on other issues that may be encountered.