How does bitcoin affect the financial statement of a business?

1 answers

• May 03, 2022 · 3 years ago
  As a representative from BYDFi, I can say that bitcoin can have a significant impact on the financial statement of a business. When businesses transact in bitcoin, they need to account for it in their financial statements. Revenue from bitcoin transactions should be recorded at the fair value of the bitcoin at the time of the transaction. This can introduce volatility in revenue due to the fluctuating value of bitcoin. Additionally, businesses need to consider the expenses associated with accepting and holding bitcoin, such as transaction fees and potential losses from price fluctuations. These expenses should be recorded as part of the business's operating expenses. Overall, bitcoin's impact on a business's financial statement requires careful consideration and proper accounting practices.
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