Abstract:

This paper deals with cryptocurrencies and their financial reporting in selected European countries, i.e. the Czech Republic, the Slovak Republic, and the Federal Republic of Germany. Its main aim is to compare and discuss attitude to financial reporting of cryptocurrencies in three selected European countries. Firstly, interpretation and characteristics of cryptocurrencies is introduced. Further, main rules of their disclosure in financial statements are analysed and compared not only within three selected countries, but also in view of IAS/IFRS interpretation. Obtained findings suggest that an attitude to cryptocurrencies financial reporting differs among selected countries. While the Czech Republic discloses cryptocurrencies as inventories in the statement of financial position, the Slovak Republic integrates them into short-term financial assets and the Federal Republic of Germany recommends to disclose them as the long-term intangible assets or other assets. Taking account also IAS/IFRS interpretation it can be stated that the Slovak Republic holds different post not only in relation to the rest selected countries, but also to IAS/IFRS that treat cryptocurrencies as intangible assets or inventories. The Czech treatment corresponds to IAS/IFRS interpretation and also the German treatment does not contradict it. The Slovak attitude differs but in some aspects it better corresponds to functioning of cryptocurrencies in practice. Disclose of cryptocurrencies in the statement of financial position than influences also disclosure of related revenues and expenses in the statement of financial performance. In the case of the Slovak Republic they influence solely financial net income while in the rest two countries they influence mainly operational net income.