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By Benoit CHAMBON, PhD, Koinju | CLO co-founder*
The application of the “fair value” (FV) method to the accounting valuation of crypto-assets has been called for by many companies and professionals in the field of accounting. But the application of international accounting standards such as IFRS 13 to determine the FV of a crypto asset is not without some questions.
If it seems inconceivable to exchange one listed company stock for another in TradFi, there are assumptions where crypto assets do not benefit from a fiat currency pricing, as they are only traded against other crypto assets. For these assumptions, IFRS 13’s FV-hierarchy(1) is silent as it stands. It remains even more problematic when a “principal market”(2), the criterion...
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