Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

ACCOUNTING AND TAX TREATMENT OF CRYPTOCURRENCIES: A SYSTEMATIC REVIEW

Author(s): Sibonelo Sibahle Mpanza, Rajendra Rajaram, Damilola Aboluwodi

Purpose: The primary aim of this study was to discuss the possible treatment of cryptocurrencies in the context of accounting and taxation. Design/method/approach: The study followed a qualitative approach and used paper analysis to achieve the primary objective. The paper analysis included a systematic review of papers. The study focused on the paper analysis of existing data to refine a conceptual framework. Findings: It was found that because of the volatility of cryptocurrencies, the existing measurement models which are the cost model and fair value model, do not cater to cryptocurrencies. Practical implications: This study addressed the gap between financial information and regulations. These fintech advances do not merely challenge the monetary system but also the regulation system. Thus, the importance of acknowledging the application and the implication of technology on the current regulatory system is imperative and significant. Originality/value: This study will serve as a basis for international accounting standard boards and tax authorities when modifying or developing standards and tax provisions that specifically address the treatment of cryptocurrency.

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