KPMG Lu Kunpeng: Currently the best accounting treatment for digital currencies is intangible assets

According to Sina Finance News, on December 20, the 2019 Digital Finance Annual Summit was held in Beijing. Lu Kunpeng, head of KPMG's Northern District Hi-Tech Group, talked about "blockchain accounting." Lu Kunpeng said that digital currency is a typical application based on blockchain. However, as of today, no accounting standards committee in the world can tell us how digital currency should be reflected in accounting. In fact, Bitmain sells miners in some foreign regions to collect bitcoins, not to collect cash like domestic ones. This brings new challenges to the accounting treatment of digital currencies. At present, the best accounting treatment for digital currencies is intangible assets, and intangible assets that are not amortized, but will be tested for impairment as the price of Bitcoin drops. One challenge facing accounting firms today is how to audit digital currencies. The industry is still exploring this new thing.