Abstract:

This research aims to examine the current practices of accounting for bitcoins by reviewing some studies which related to this topic, and thus for achieving the main objective of the study, which is to develop a proposed model to account for bitcoins that unifies accounting practices of bitcoins. The main objective of the study is to develop a proposed model to account for bitcoins that unifies accounting practices of bitcoins. To achieve this objective, the researchers divided the research to include the following: “Introduction" which aimed to gain a holistic view for the research, and then " Literature Review." In this part the researchers clarify the nature, characteristics, pros and cons, and also how the bitcoin system works, through reviewing number of papers, accounting academic journals, professional publications. After that, the researchers reviewed the different current accounting practices for bitcoins, and the efforts of some formal organizations in accounting for bitcoins.

Finally, the researchers introduced A proposed framework for unifying the accounting practices for bitcoins; the proposed framework consisted of five main pillars, recognition and classification of bitcoins, measurement of bitcoins and disclosures for bitcoins. The researchers represented a case of financial statements to apply the proposed framework for accounting for bitcoins, and show the effect of the proposed accounting model on the financial statements.