How should cryptocurrency assets be reflected in a company’s balance sheet?

According to the position of the Ministry of Finance and the Federal Tax Service of Russia, digital currency is recognized as property, and therefore must be accounted for in the company’s bookkeeping as an asset. This is confirmed both by Federal Law No. 259-FZ dated July 31, 2020, and clarifications issued by the tax authorities. In the balance sheet, cryptocurrency may be reflected similarly to other property — for example, as current assets (if it is intended for sale in the short term), specifically under "inventory," or as non-current assets (if intended for long-term holding or investment), specifically as "financial investments." The specific method of recognition is determined independently by the organization in its accounting policy, which sets out the valuation method, accounting procedure, and write-off rules. It is important to maintain proper documentary support for all transactions: purchase agreements, transfer confirmations, justification of market value at the date of recognition in the balance sheet, and subsequent transactions. Additionally, crypto assets are not subject to depreciation, as they are not depreciable assets under accounting legislation.