Crypto Accounting Standard
PITF No. 38 Practical Solution on the Accounting for Virtual Currencies under the Payment Services Act
World's First Crypto Accounting Standard?
On March 14, 2018, the ASBJ (Accounting Standards Board of Japan) issued the PITF (Practical Issues Task Force) No. 38 “Practical Solution on the Accounting for Virtual Currencies under the Payment Services Act” (Crypto Accounting Standard).
My understanding is that this is the first stab an official accounting standard setting body has taken in releasing accounting guidance on how cryptos should be treated.
In this article, we aim to provide a summary of the Crypto Accounting Standard.
The numbers in parentheses that appear during the article represent the paragraph number from the original standard.
The original standard refers to cryptos as virtual currencies, so we have used that reference when translating excerpts from the standard.
The Crypto Accounting Standard is applicable to all companies that use crypto and is not limited to crypto exchanges.
It is useful for both preparers and users of financial statements to understand the Crypto Accounting Standard.
I Effective date and Scope
This PITF is effective for the annual period beginning after April 1, 2018.
Early adoption is permitted for the annual and interim period ending after the issuance of this PITF. (18)
The Standard addresses the accounting for virtual currencies as defined in the Payment Services Act, except for those that were issued by the entity itself (including its parent, subsidiaries and affiliates). (3)