We are a start-up and we will be issuing token. Buyer will be able to buy the token in cash or using cryptocurrency.
Under IFRS, Cryptocurrency meet the definition of an intangible assets. Once the cryptocurrency is received this should be booked at cost and subsequently revalued. From the standard:
If an intangible asset’s carrying amount is increased as a result of a revaluation, the increase shall be recognised in other comprehensive income and accumulated in equity under the heading of revaluation surplus. However, the increase shall be recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss.
If an intangible asset’s carrying amount is decreased as a result of a revaluation, the decrease shall be recognised in profit or loss. However, the decrease shall be recognised in other comprehensive income to the extent of any credit balance in the revaluation surplus in respect of that asset. The decrease recognised in other comprehensive income reduces the amount accumulated in equity under the heading of revaluation surplus.
Let's say that you revalue the intangible asset for a few years and that the carrying amount is decreased every year. At the end of the fiscal year, the loss will be transferred to retained earnings. However in year 4, the carrying amount increased for more than the amount previously expensed and now transferred in retained earnings.
Shall we book the equivalent of previous expense (or loss) against retained earnings and the remaining part in other comprehensive income?
