PICPA Doha organises webinar on aspects of digital asset accounting
THE Philippine Institute of Certified Public Accountants (PICPA) Doha LLC(G) hosted a webinar on ‘IFRS Updates and Accounting Considerations for Digital Assets’ recently.
PICPA Doha’s Treasurer Micha Lizette M. Pataueg-Vardanyan, Rey E. Barcena (Ways and Means) and Morris L. Montecillo (Associate Volunteer-Membership) led the webinar that was attended by around 50 PICPA members, associates and guests.
With the help of lfacilitators Karish Laura T. Elentante (PICPA Doha Chairman for Sports) and Vernie Chris A. abala (PICPA Doha’s Auditor), the webinar generated a lively atmosphere that led to engaging and interactive participation.
Reyes, Tacandong and Co. Audit Partner Manuel P. Buensuceso, Junior facilitated the comprehensive discussion that highlighted the financial reporting modifications for Going Concern, IFRS 9 (Contract Modification and Hedge Accounting), IFRS 16 (Leases), IAS 20 (Government Grants), Asset Valuations, and Accounting for Insurance Claims.
The speaker started his presentation by discussing the current economic impact of COVID-19 and its effect on business. This includes, but is not limited to, financial market volatility and erosion, deteriorating credit, liquidity concerns, further increases in government intervention, increasing unemployment, broad declines in consumer discretionary spending, increasing inventory levels, reductions in production because of
decreased demand, layoffs and furloughs, and other restructuring activities.
According to him, the continuation of these circumstances could result in an even broader economic downturn which could have a prolonged negative impact on an entity’s financial results.
During his presentation, the speaker stressed the need for accountants and auditors to be extremely cautious with their estimations and judgements because the credibility and sustainability of a company depends on how they assess things, particularly the effects brought by COVID-19.
He added that aside from the economic conditions that the pandemic has brought, digital assets are also making headline during the past year. Cryptocurrencies are continuously gaining the interest of governments, institutional investors and individuals around the world as an emerging asset class.
The second part of the speaker’s presentation focused on blockchain technology and digital assets for non-investment entities, as well as the implications of cryptocurrencies in the accounting practice based on the current guidance of IFRS.
“The blockchain technology is the infrastructure, it is the operating system and the application system above the blockchain technology is the cryptocurrency. What interest us more in terms of accounting is the technology behind cryptocurrency and the application itself which is the Bitcoin or cryptocurrency,” he said.
According to him, it is imperative that accountants should invest time to learn the financial details of digital assets, including its classification and recognition, initial and subsequent measurement, and derecognition among others to equip themselves on the complexity of its taxation and accounting treatment.
PICPA Doha’s upcoming webinar will be about ‘Optimising Your CV’ to be held on October 22, 2019. This is part of the programme of the organisation in pursuance of its theme this year ‘STRIVE’ (Success Through Resilience, Innovation, Volunteerism and Excellence).