South Korea will compel corporations that possess or issue cryptocurrency to disclose their holdings in financial statements beginning in 2024, according to draught guidelines announced recently by the country’s financial authority.
Companies will be required to publish information about the number, characteristics, business methods, and accounting procedures pertaining to the sale of virtual currencies, as well as earnings, volume, and market value of their crypto, under the new laws.
According to the Financial Services Commission (FSC) notice on the draught rules, the measures aim to promote accounting transparency following the passage of the Virtual Asset User Protection Act on June 30.
Previously, corporations and their auditors had differing views on the timing and criteria for establishing whether the sale of virtual assets to customers constituted profit. If a corporation sells virtual assets under these laws, the sales will be recognised as profit once the company fulfils its commitments to its holders.
The announcement stated that costs paid in producing virtual assets and associated platforms will not be recognised as intangible assets.Over the last year, domestic accounting professionals have continued to examine accounting uncertainties, with participation from the Financial Services Commission, the Financial Supervisory Service, and the Accounting Standards Board. The notification also stated that audit procedural guidelines are being developed.