South Korea to formulate clear accounting treatment guidelines for virtual assets

According to News1, South Korea will formulate clear accounting treatment guidelines for virtual assets within the scope of reasonable interpretation of the International Financial Reporting Standards (IFRS) to eliminate market uncertainties. The guidelines are mainly based on virtual asset-related transaction entities and transaction stages. Among them, the company’s obligations to virtual asset holders are usually divided into three stages, except in rare cases, the scope of obligations granted to the issuer is arbitrarily changed after the fact, so as to avoid the recognition time of sales proceeds recognized as liabilities in advance; After completing all obligations to virtual asset holders, the sale share of virtual assets needs to be recognized as income; before completing the obligations to virtual asset holders, which are usually divided into three stages, the payment received by the company should be recognized as debt.