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Cryptocurrencies have emerged as an instrument of exchange, typical of the role of money. But in a short time, due to high fluctuations. Cryptocurrencies have become derivative financial instruments because of large increases in a very short time. Like any financial instrument it had a correction period, which brought huge losses to investors. Accounting for cryptocurrencies is a common problem nowadays. This new method of exchange also affects the life of companies. At first cryptocurrencies directly affected individuals, but as their popularity grew, they began to become involved in the economic life of companies. These economic acts need to be reflected in the economic statements of companies. There is no clear regulation on how to account for these cryptocurrencies. The aim of the paper is to address the need for regulation in the crypto area. The new financial instrument to be presented in a company's financial statements.

The purpose of the study was to disclose the content of agrarian receipts and the mechanism for their application in the settlement system of Ukrainian agricultural producers as an alternative way to attract resources for doing business under martial law in Ukraine, as well as to make proposals for their accounting in order to avoid business risks. The state of lending to agricultural producers during martial law is analyzed and the importance of lending against agrarian receipts is substantiated. The experience of Brazil in the process of lending for the future harvest was assessed. The history of the introduction of agrarian receipts in Ukraine is characterized on the basis of borrowing the idea of Brazil. The essence of agrarian receipts is revealed and the legal framework for their circulation in Ukraine is investigated. The difference between agrarian receipts and other financial instruments (bill, forward contract, pledge) is determined. The problematic aspects of the introduction of agrarian receipts into circulation, which hinder the effectiveness of the use of this tool by agricultural enterprises in the process of attracting financial resources, are systematized. The business models of relationships between counterparties in the process of circulation of agrarian receipts are characterized. Theoretical and practical aspects of accounting for agrarian receipts have been studied and problematic aspects in the methodology for reflecting settlements by agrarian receipts in the system of accounting accounts have been identified. Organizational, methodological and practical recommendations are proposed aimed at improving the procedure for recording transactions with commodity agrarian receipts in the accounting system as an innovative way of financing agricultural producers at the domestic and international levels. This will make it possible to quickly collect data on the circulation of agrarian receipts and improve information support in making managerial decisions by various groups of Ukrainian and foreign stakeholders. [ABSTRACT FROM AUTHOR]

Classic inventory theory suggests that inventory plays a vital role in matching demand and supply. This paper provides both country- and firm-level evidence that inventory can be used as a financial instrument to take advantage of arbitrage opportunities in financial markets with limited capital mobility. Using data from China customs' metal imports and firm-level inventory from metal processing industries, we show that firms can utilize the inventory of an imported product to carry lower cost capital into a country with strict capital controls and, thus, gain higher financial returns. Specifically, at the country level, we find that the level of imported metal commodities is positively associated with the expected returns from financial arbitrage. At the firm level, we find that a higher expected return from financial arbitrage will incentivize a firm to increase its inventory level through short-term borrowing. In addition, our evidence supports the notion that firms with higher liquidation value, larger size, and higher sales growth (i.e., firms with higher borrowing capacity) may be more active in using inventory as an instrument to seek higher financial gains. We also utilize a unique regulatory policy shock as a quasi-natural experiment to enhance the causality interpretation of our empirical findings. This paper was accepted by Vishal Gaur, operations management. Funding: This work was supported in part by the National Natural Science Foundation of China [Grant 72201230] and the Research Grants Council of Hong Kong, University Grants Committee [Grant 14504621]. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2023.4873. [ABSTRACT FROM AUTHOR]

[Purpose] The purpose of this research is to examine the legislative approaches to regulating cryptocurrencies in different states and regions. The aim is to analyze the legal framework of cryptocurrencies in the Kazakh and international economy and determine the modern scientific approaches used in their functioning. [Methodology/Approach/Design] The study employs a combination of theoretical and empirical methods, including analysis, synthesis, historical analysis, comparative analysis, formal-logical methods, and hermeneutics. A comparative analysis is conducted to assess the different regulatory approaches of states towards cryptocurrencies and evaluate the justification for terms such as "digital currency" and "digital asset." [Findings] The findings of this study underscore the necessity for further amendments to the legislation in Kazakhstan, specifically addressing overlooked details and features concerning the financial and legal aspects of cryptocurrencies. Key decisions need to be made regarding their acceptance for public payments, tax considerations, declaration requirements, and recognition as private money. The study emphasizes the significance of adopting a comprehensive and forward-thinking legal approach that supports the full legalization of cryptocurrencies while establishing a robust regulatory framework. This approach would effectively safeguard the interests of individuals and entities, address concerns, and promote a balanced and secure environment.

[Purpose] The purpose of this research is to examine the legislative approaches to regulating cryptocurrencies in different states and regions. The aim is to analyze the legal framework of cryptocurrencies in the Kazakh and international economy and determine the modern scientific approaches used in their functioning. [Methodology/Approach/Design] The study employs a combination of theoretical and empirical methods, including analysis, synthesis, historical analysis, comparative analysis, formal-logical methods, and hermeneutics. A comparative analysis is conducted to assess the different regulatory approaches of states towards cryptocurrencies and evaluate the justification for terms such as "digital currency" and "digital asset." [Findings] The findings of this study underscore the necessity for further amendments to the legislation in Kazakhstan, specifically addressing overlooked details and features concerning the financial and legal aspects of cryptocurrencies. Key decisions need to be made regarding their acceptance for public payments, tax considerations, declaration requirements, and recognition as private money. The study emphasizes the significance of adopting a comprehensive and forward-thinking legal approach that supports the full legalization of cryptocurrencies while establishing a robust regulatory framework. This approach would effectively safeguard the interests of individuals and entities, address concerns, and promote a balanced and secure environment. [ABSTRACT FROM AUTHOR]

The purpose of the study was to disclose the content of agrarian receipts and the mechanism for their application in the settlement system of Ukrainian agricultural producers as an alternative way to attract resources for doing business under martial law in Ukraine, as well as to make proposals for their accounting in order to avoid business risks. The state of lending to agricultural producers during martial law is analyzed and the importance of lending against agrarian receipts is substantiated. The experience of Brazil in the process of lending for the future harvest was assessed. The history of the introduction of agrarian receipts in Ukraine is characterized on the basis of borrowing the idea of Brazil. The essence of agrarian receipts is revealed and the legal framework for their circulation in Ukraine is investigated. The difference between agrarian receipts and other financial instruments (bill, forward contract, pledge) is determined. The problematic aspects of the introduction of agrarian receipts into circulation, which hinder the effectiveness of the use of this tool by agricultural enterprises in the process of attracting financial resources, are systematized. The business models of relationships between counterparties in the process of circulation of agrarian receipts are characterized. Theoretical and practical aspects of accounting for agrarian receipts have been studied and problematic aspects in the methodology for reflecting settlements by agrarian receipts in the system of accounting accounts have been identified. Organizational, methodological and practical recommendations are proposed aimed at improving the procedure for recording transactions with commodity agrarian receipts in the accounting system as an innovative way of financing agricultural producers at the domestic and international levels. This will make it possible to quickly collect data on the circulation of agrarian receipts and improve information support in making managerial decisions by various groups of Ukrainian and foreign stakeholders.

The concept of risk is fundamental in various scientific fields, including physics, biology and engineering, and is crucial for the study of complex systems, especially financial markets. In our research, we introduce a novel risk model that has a natural transactional–financial interpretation. In our approach, the risk of holding a financial instrument is related to the measure of the possibility of its loss. In this context, a financial instrument is riskier the more opportunities there are to dispose of it, i.e., to sell it. We present a model of risk understood in this way, introducing, in particular, the concept of financial time and a financial frame of reference, which allows for associating risk with the subjective perception of the observer. The presented approach does not rely on statistical assumptions and is based on the transactional interpretation of models. To measure risk, we propose using the Radon transform. The financial concept of risk is closely related to the concepts of uncertainty, entropy, information, and error in physics. Therefore, the well-established algorithmic aspects of the computed tomography method can be effectively applied to the broader field of uncertainty analysis, which is one of the foundational elements of experimental physics.

Cryptocurrencies have emerged as an instrument of exchange, typical of the role of money. But in a short time, due to high fluctuations. Cryptocurrencies have become derivative financial instruments because of large increases in a very short time. Like any financial instrument it had a correction period, which brought huge losses to investors. Accounting for cryptocurrencies is a common problem nowadays. This new method of exchange also affects the life of companies. At first cryptocurrencies directly affected individuals, but as their popularity grew, they began to become involved in the economic life of companies. These economic acts need to be reflected in the economic statements of companies. There is no clear regulation on how to account for these cryptocurrencies. The aim of the paper is to address the need for regulation in the crypto area. The new financial instrument to be presented in a company's financial statements. [ABSTRACT FROM AUTHOR]

The article considers implications of algorithmic stablecoins, with a particular focus on the Terra/Luna ecosystem and their impact on the financial and regulatory landscape. It examines the collapse of TerraUSD (UST) and its subsequent effects on the global cryptocurrency market. The article delves into the mechanics of UST's pegging mechanism, which relied on complex algorithmic adjustments without fiat collateral, leading to its dramatic devaluation. The study highlights the regulatory challenges posed by decentralized financial systems and algorithmic stablecoins, emphasizing the difficulties in legally addressing the actions of creators within a system perceived as a financial pyramid. It underscores the need for clearer regulatory frameworks, not only in Polish legislation but also under the MiCA (Markets in Crypto-Assets) regulation in the EU, along with similar legislative efforts globally. By analyzing the systemic risks and vulnerabilities exposed by the Terra/Luna collapse, the article advocates for a balanced regulatory approach that ensures investor protection while fostering innovation. [ABSTRACT FROM AUTHOR]

The article presents the underlying provisions in the field of financial instrument accounting treatment. The paper summarizes the outcomes of a critical analysis of the authoritative text of Accounting Standard 32 – Financial Instruments. The article presents proposals for remediation of identified deficiencies with the aim of assisting the establishment of good practice with respect to the application of the Standard. [ABSTRACT FROM AUTHOR]

Utility tokens, which are cryptocurrencies on a smart contract blockchain that serve a specific purpose within the ecosystem of a crypto project (Shirole et al., 2020), have exploded in popularity among Thai investors over the past few years due to the fact that their value tends to increase much more rapidly than that of traditional assets. This study attempts to analyse the variables influencing Thai investors' adoption of utility tokens. A binary logistic regression was conducted to find factors of statistical significance. The results indicate that gender, level of education, income, savings, the types of financial instruments an investor owns, and the investor's use of social media platforms are significant determinants of utility token adoption. The article argues that when planning marketing efforts, organisations issuing utility tokens should consider their clients' gender, level of education, income, and savings, as these factors have a substantial influence on utility token adoption. In addition, in order to increase the adoption of utility tokens by experienced investors, brokers or financial advisors must evaluate the customer's current financial holdings in order to develop successful financial plans and provide appropriate guidance to customers. [ABSTRACT FROM AUTHOR]

Abstract In recent years, the mining of cryptocurrencies such as Bitcoin has attracted much global attention due to the simplicity and high profitability of this business, especially in countries with low electricity rates. The process of cryptocurrency mining using cryptocurrency mining devices requires a significant amount of computing power. This industry, which is increasingly growing in energy and carbon emissions, can cause environmental concerns. Common ways to reduce this amount of energy consumption are to prohibit mining and charge these loads at a higher electricity rate; however, these solution methods are not feasible and applicable in many countries. This paper presents an energy efficiency program to persuade the customers to mine cryptocurrency using high‐efficient cryptocurrency mining devices (CMDs), including informative, regulation, and financial policy instruments. This energy efficiency approach suggests a standard, if implemented, would ban the application of inefficient CMDs, and would encourage the cryptocurrency miners to improve the profitability of their business with high‐efficient CMDs through a penalty‐reward strategy. The performance of this energy efficiency program is studied through an analysis of data gathered from different CMDs used in Iran. The effectiveness of this suggested program is proved through its sufficient incentives for miners using high‐efficient CMDs.

The development of new technologies in the field of finance (fintech) creates new opportunities and ways to carry out economic activity. One of these tools is blockchain and technologies created on its basis. One of the most famous of such tools is the process of issuing and selling digital coins (tokens), called Initial coin offering (ICO). The ICO process is often mistakenly viewed as a simpler and faster alternative to the classic IPO procedure. However, these procedures have more differences than similarities. This article provides a detailed comparison of IPO and ICO in terms of a number of key parameters, key similarities and differences from the point of view of both the investor and the issuer. At the end, there are recommendations for choosing an instrument depending on the goals of the investor and the issuer.

A recent development in the financial service industry is the introduction of the fractional share right that allows a retail investor to invest in a fraction of a listed equity share. Fractional share right is not defined in the Income Tax Act No. 58 of 1962 ('the Act'), nor has it been subject to scrutiny in South African courts. Uncertainty exists regarding the normal tax implications of fractional share rights in South Africa. This article investigated the possible normal tax implications of a fractional share right for a retail investor. The research followed a qualitative approach through the analysis of primary and secondary sources. The article established that a fractional share right is essentially a contract for difference, with a fraction of a listed equity share serving as the reference instrument. It was ascertained, based on a combination of the integration and bifurcation approaches, that a contract for difference in respect of a fractional share right constitutes a financial instrument for purposes of the Act. Due to the absence of specific provisions in the Act dealing with the normal taxation of financial instruments for retail investors, it was ascertained that the amounts stemming from the contract for difference in respect of a fractional share right may be taxed according to the general provisions of the Act – sections 1(1) and 11(a) of the Act. [ABSTRACT FROM AUTHOR]

In recent years, the mining of cryptocurrencies such as Bitcoin has attracted much global attention due to the simplicity and high profitability of this business, especially in countries with low electricity rates. The process of cryptocurrency mining using cryptocurrency mining devices requires a significant amount of computing power. This industry, which is increasingly growing in energy and carbon emissions, can cause environmental concerns. Common ways to reduce this amount of energy consumption are to prohibit mining and charge these loads at a higher electricity rate; however, these solution methods are not feasible and applicable in many countries. This paper presents an energy efficiency program to persuade the customers to mine cryptocurrency using high‐efficient cryptocurrency mining devices (CMDs), including informative, regulation, and financial policy instruments. This energy efficiency approach suggests a standard, if implemented, would ban the application of inefficient CMDs, and would encourage the cryptocurrency miners to improve the profitability of their business with high‐efficient CMDs through a penalty‐reward strategy. The performance of this energy efficiency program is studied through an analysis of data gathered from different CMDs used in Iran. The effectiveness of this suggested program is proved through its sufficient incentives for miners using high‐efficient CMDs. [ABSTRACT FROM AUTHOR]

The intensive development of digital technologies, their penetration into business and everyday life calls for the assessment of theoretical validity and practical feasibility of including the concepts of “digital rights” in civil law legislation. The purpose of the study is to develop a methodology for identifying digital rights as an object of accounting and control. The article analyzes the definitions of the concept “digital rights”, “obligation and other rights”, evaluates the forms of digital rights implementation and restrictions on the disposal of digital rights, proposed in Law No. 34-FZ. The authors consider the applied value of the phenomenon of digital rights not only in civil paper work, but also in accounting and control processes. The concepts developed by accounting methodologists to post transactions with digital rights in ledgers are revealed. On the basis of generalization of the initial technological foundations of asset tokenization in business projects, a conclusion is made that a shared problem in digital rights management involves the choice of digital algorithms, financial platforms for their issuance and circulation. The analysis of the Russian and international rules for the identification of digital financial assets (DFA) (tokens) as an object of the accounting policy of companies and their use in preparation of reports makes it possible to state that DFA can be considered a financial instrument with all subsequent accounting and control and analytical operations only when a specific right, for example, participation in the replacement of real shares, is exercised. It is recommended to make some amendments related first, to the accounting and reporting methodology to facilitate the identification and assessment of digital rights holders (investment tokens) that replace securities, and, second, to account 58 “Financial Investments”, namely to open an additional subaccount to account for securities which are replaced by digital assets or digital currency.

Purpose: The study examines the compliance level with IFRS 7 by deposit money banks in Nigeria for the period between 2017-2020. Design/Methodology/Approach: The study adopts an un-weighted disclosure index method to test the two hypotheses and using Qualitative Grading System (QGS) to rank the level of compliance with the aid of explorative research design. Findings: The study found that in average, the over-all compliance by DMBs at commencement year stood at 51.04% and this implies that as at the commencement year DMBs weakly complied with the requirements of IFRS 7. Implications/Originality/Value: The study concluded that though DMBs in Nigeria do not totally comply with the provisions of IFRS 7 throughout the study period yet, there have been significant improvements in the level of compliance with the standard disclosure in the annual reports of DMBs in Nigeria. It’s therefore recommending that banks should strive to ensure full compliance with the standards as this will add more confidence in the economy. This must be done with the enforcement of regulatory bodies. The FRCN should intensify its mandate to ensure banks strictly comply with the provisions of IFRS.

Farming and food production sustainability increasingly depends on the availability of a clean energy model for irrigated agriculture. This can be achieved by massively introducing photovoltaic irrigation systems (PVI) with sufficient quality and reliability. Nevertheless, such PVI projects require high upfront investment and long payback times, so access to long-term, low-cost capital is essential to ensure their competitiveness. In this regard, decentralized financial (DeFi) solutions based on blockchain (BC) technology present a number of features that can be applied to produce financial instruments (FI) well suited to attract investors to PVI projects and to reduce the cost of clean energy for irrigators. In order to assess such a possibility, a DeFi FI tailored for PVI has been produced and implemented in BC. We demonstrate that a single smart contract executed in a distributed ledger can execute the different tasks related to the securitization of PVI assets. The impact on the cost of capital for PVI projects is significant, leading to an estimated reduction in the cost of clean energy for irrigators of 22%. Nevertheless, decentralization also introduces a number of specific risks that must be considered and mitigated. [ABSTRACT FROM AUTHOR]

In this study, we empirically examine the relationship between U.S. immigrants' intentions to emigrate from the U.S. and their financial market participation. Researchers have explored several determinants of immigrants' financial market participation, namely the characteristics of the immigrants and their country of origin. However, one determinant that has not been explored, due to lack of data, is immigrants' intentions to emigrate from the host country. Using data from the New Immigrant Survey, we find that immigrants with intentions to emigrate from the U.S. are more likely to participate in the financial markets relative to their counterparts with no such intentions. The results also indicate that married immigrants with intentions to emigrate from the U.S. are less likely to own a checking or savings account than immigrants who are not married. In addition, immigrants with the intent to emigrate from the U.S. are more likely to purchase stocks, corporate bonds, or both as they get older. [ABSTRACT FROM AUTHOR]

Copyright of IDES is the property of Institute of Certified Public Accountants and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Revista Română de Drept al Afacerilor is the property of Wolters Kluwer Romania and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Increased corporate interests in holding cryptocurrencies have put forward a discussion on their accounting and presentation in financial statements in compliance with IFRS. In June 2019, IFRS Interpretations Committee (IFRS IC) published its agenda decision, which represents the official position of the International Accounting Standard Board (IASB) with regard to accounting for cryptocurrency holdings. IFRS IC concluded that a cryptocurrency should not be considered as cash or another type of financial asset. Cryptocurrencies meet the definition of intangible assets and inventory. Therefore, they should be accounted for under IAS 38 unless they are held for sale in the ordinary course of business, in which case, IAS 2 would apply. The article analyzes the existing regulatory framework for accounting cryptocurrencies in terms of providing useful information for users of financial statements. It provides ground and sets a stage for critical reasoning and discussion of contradictory views regarding the fact that the given standards (IAS 38, IAS 2), which were developed a long time ago for the assets with completely different content, do not provide fair accounting and measurement of a new economic phenomenon – cryptocurrency, which was created on a technological basis. Even though a cryptocurrency is not considered as a financial instrument, it is often an integral part of a present-day enterprise investment portfolio. Additionally, more and more companies are agreeing to accept cryptocurrencies as alternative means of payment. The paper emphasizes the fact that accounting for cryptocurrencies should be based on the actual business model and economic content of their holdings, which will provide users of a financial statement with high-quality and useful information in this regard. [ABSTRACT FROM AUTHOR]