Abstract:

The main aim of this paper is to analyse and compare valuation bases used for cryptocurrencies pricing in three selected European countries, i.e. the Czech Republic, the Slovak Republic, and the Federal Republic of Germany. Among others, fair and true disclosure of cryptocurrencies in financial statements is influenced by valuation techniques used. That is why our paper analyses and compares attitudes to this problem within examined sample of selected European countries. This paper loosely follows our previous paper dedicated to disclosure of cryptocurrencies in financial statements as interpretation and disclosure of cryptocurrencies influence naturally valuation bases used for accounting measurement. We take into consideration also IAS/IFRS view in outline. Firstly, interpretation of cryptocurrencies in selected countries is discussed briefly. Further, valuation bases and basic valuation rules used for cryptocurrencies pricing are analysed and compared. Obtained findings suggest that equally as a view on cryptocurrency interpretation and disclosure in financial statements differs among traced EU countries, also valuation bases used for cryptocurrencies measurement differ. The Czech Republic that treats cryptocurrency as inventory uses cost of acquisition for its initial evaluation in accounting. Cost of acquisition encompass also related expenses such as exchange fees. Similar attitude holds the Federal Republic of Germany that interprets cryptocurrency as either long-term intangible asset or other receivables. It evaluates cryptocurrencies by cost of acquisition defined similarly as in the Czech Republic. Different stand takes the Slovak Republic that integrates cryptocurrencies into the short-term financial assets and evaluates them by fair value. This stand differs also from interpretation of IAS/IFRS that include cryptocurrencies either in inventories, or in the long-term intangible assets and recommend to evaluate them initially by cost of acquisition.