Are mistaken: Is bitcoin intangible asset
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IFRS Body eventually Defines Bitcoin as ‘Intangible Asset’
Bitcoin (BTC) and other cryptocurrencies have finally been ruled out by The International Financial Reporting Interpretations Committee (IFRIC) as neither legal tender nor financial assets.
On Sept. 23, The Korea Times announced this while citing the briefing that Korea Accounting Institute (KAI) gave concerning an IFRIC meeting that was held in London earlier in June.
Cryptocurrencies are neither currencies nor financial assets
Cryptocurrencies are “not cash nor an equity instrument of another entity,” but instead “intangible assets” which can vividly be defined as “identifiable non-monetary assets without physical substance,” as per the IFRIC statement in the report.
The IFRIC clearly defines the asset as identifiable in case it is separable or emanates from contractual or other forms of legal rights.
An asset can be attributed as “Separable” if it is:
“capable of being separated or divided from the entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, identifiable asset or liability.”
As a not-for-profit international organization, the IFRIC has mandated itself with coming up with a particular set of accounting standards that are actually fully applicable to more than 140 jurisdictions and also partially many other jurisdictions.
With this new IFRIC’s cryptocurrencies position, governments can now establish a proper legal taxation basis and businesses can also sketch out various corporate accounting frameworks, noted the Korea Times.
However, the position represents a significant setback -report further argues- concerning the prospective recognition of cryptocurrencies as currencies.
Korea’s National Tax Service Commissioner Han Seung-hee earlier this year revealed to reporters that he was searching for diverse ways to foster bitcoin’s relationship with the nation’s existing value-added tax, capital gains tax, and gift tax structures. He specifically said that he intends to tax Bitcoin use to counter the current surging trade volumes.
Sources:https://cointelegraph.com/news/intl-accounting-standards-body-defines-bitcoin-as-intangible-asset
http://www.koreatimes.co.kr/www/biz/2019/09/175_276003.html
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