Bitcoin price dropped further on Friday after Tesla CEO Elon Musk's latest tweet that states his breakup with the cryptocurrency. Here's the full story..
LONDON/NEW YORK: Large companies from carmaker Tesla Inc to business intelligence firm MicroStrategy Inc have swapped billions of dollars in cash for bitcoin in recent months.
Yet hurdles remain for the quick dawn of a wider trend of major corporations holding bitcoin, from the cryptocurrency s volatility to reputational risk, financial chiefs and accountants told Reuters.
Here are some of the key questions over cryptocurrency bookkeeping and tax:
HOW DOES CRYPTO ACCOUNTING WORK?
The bookkeeping rules used by U.S. companies make no specific reference to cryptocurrencies such as bitcoin.
Under guidance from 2019 issued by the U.S. accounting trade body, companies account for bitcoin under rules for intangible assets such as intellectual property.
Buy Electric Tesla Car using Bitcoin: Elon Musk Tech giant Tesla has invested $1.5 billion in controversial cryptocurrency Bitcoin for first time. Check Bitcoin price