South Korea will establish clear accounting guidelines for virtual assets

ChainCatcher news, according to News1, South Korea will establish clear accounting treatment guidelines for virtual assets within the reasonable interpretation of International Financial Reporting Standards (IFRS). The guidelines will primarily follow the relevant transaction entities and transaction stages of virtual assets.

The company's obligations to virtual asset holders are generally divided into three stages, unless in rare cases, the scope of obligations granted to the issuer is arbitrarily changed post-factum to avoid the premature recognition of liabilities from the sale proceeds; after the company has fulfilled all obligations to virtual asset holders, it must recognize the sale portion of the virtual assets as revenue; before completing the obligations to virtual asset holders, which are usually divided into three stages, the amounts received by the company should be recognized as liabilities. (Source link)