Cryptocurrency / Bitcoins

Bitcoin is a virtual monetary unit and the strongest cryptocurrency on the market worldwide.

The accounting and valuation of Bitcoins is not quite obvious. How are Bitcoins to be accounted for and valued according to the position of EXPERTsuisse (Commission for Financial Reporting)? EXPERTsuisse distinguishes between Bitcoins held for the short term and Bitcoins held for the long term. 

Bitcoins held for the short term are reported under "marketable securities", "other current assets with quoted market prices" or "inventories" (if actively traded in the ordinary course of business). Bitcoins held on a long-term basis are reported under "financial assets" or "intangible assets". 

Bitcoins are measured at acquisition and/or production cost, at the observable market price or at the observable market price less fluctuation reserves (if the market value is higher than the acquisition cost). The chosen methodology is to be disclosed in the notes.