NATIONAL STANDARDS OF ACCOUNTING AND REPORTING IN THE ERA OF DIGITALIZATION OF THE ECONOMY

Abstract

The paper offers the author’s view on national accounting and reporting standards in the context of economy’s digitalization. The key trends of digitalization and its impact on accounting are considered — both globally and in Ukraine. The leading technologies that have emerged as a result of the digitalization trend and their impact on accounting and reporting are highlighted. Examples of best practices from developed countries on the new technologies’ application in the context of accounting and reporting are provided. A specific focus of the paper is on crypto-assets’ accounting. Features of accounting and reporting depending on the nature of certain types of crypto-assets are presented. The best industry practices and positions of leading audit companies in crypto-assets’ accounting and reporting are summarized. Examples of developed countries’ legislative practices regarding crypto-assets’ accounting, reporting and taxation are given. A review of laws and regulations on crypto-assets in Ukraine is performed. Relevant accounting standards that could be applied while considering various aspects of crypto-assets are highlighted. It is identified that the application of effective regulatory frameworks and guidelines is a key challenge in the context of crypto-assets’ accounting and reporting. List of questions is presented for a researcher or practitioner to pose in the context of determining the approach to crypto-assets’ accounting and reporting. An example of token’s accounting in accordance with the existing accounting standards in Ukraine is given. The best practices for external audit of crypto-assets as a part of companies’ financial statements audit are summarized. Potential risk areas for external audit in the context of crypto-assets are outlined. The author’s vision of the potential evolution directions for national accounting standards in the context of economy’s digitalization is presented.