Crypto Accounting and Audit Reports: A GAAP and IFRS Compliant Approach

Balances History Reports

Balances history reports provide an overview of the historic token quantity and corresponding fiat value in each of your connected wallets.

They are available in two types — wallet breakdown and asset breakdown.

The former shows the token balance in each wallet, while the latter provides additional data such as starting and ending balances, and the net change in value. These reports enable you to monitor your wallet balances and track changes over time.

For instance, if your wallet has a starting balance of 5 SOL and an ending balance of 2.23 SOL, the ‘rollup’ or net change is recorded as -2.77 SOL, giving you a clear picture of your balance changes over a specified period.

Fee Expenditure Reports

Fee expenditure reports focus on the network fees or gas fees incurred for each transaction. These reports help you to understand the cost of transactions on the blockchain and aid in efficient resource allocation. By tracking these fees, you can strategize to minimize transaction costs and optimize your digital asset management.

For instance, if you pay a network fee of 0.000005 SOL at an asset price of $38.5467, the total fee in fiat (calculated as Asset Price * Fee amount) will be recorded as $0.0002, allowing you to track and manage your transaction costs effectively.

Positions Reports

Positions reports are a snapshot of your assets at a particular point in time. They provide detailed information about the composition, distribution, and value of your holdings. These reports are particularly useful for portfolio management, helping you to understand your investment position and make informed decisions.

For instance, if you hold 0.00002 SRM tokens worth $0.12, this value is recorded in the report, providing you with a clear picture of your asset position.

Assets Reports

Assets reports list all the assets present in your wallet(s) at the time of the report download, with the corresponding asset’s contract address.

This report is valuable for tracking and managing a diverse portfolio of digital assets. It provides a comprehensive view of your asset holdings and aids in the strategic planning of your digital assets.

For instance, if you hold ATS tokens in your wallet, your asset list report will show a line item with SRM as the token, along with its address SRMuApVNdxXokk5GT7XD5cUUgXMBCoAz2LHeuAoKWRt

Adherence to GAAP and IFRS Principles

The reports produced by consola.finance adhere to both Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), which are globally recognized standards for financial reporting. Here’s how these reports comply with these principles:

1. Consistency and Uniformity: The reports maintain a consistent approach to the recording of transactions and adhere to IFRS’s uniform standards, ensuring that the same accounting principles are used over time. This enables users to compare and analyze data across different periods.
2. Reliability and Fair Presentation: The data in the reports is reliable and verifiable, following both GAAP and IFRS principles. Each transaction is recorded with a unique hash, ensuring the authenticity of the information and presenting a fair view of the financial position.
3. Relevance and Understandability: The reports provide relevant information that meets the needs of the users, as per IFRS guidelines. It includes comprehensive transaction data, balances, fees, positions, and assets details, helping the users make informed financial decisions. The reports are also designed to be easily understandable, providing clear and concise information.
4. Comparability: Both GAAP and IFRS emphasize comparability in financial reporting. The reports facilitate this by presenting information in a manner that allows users to identify similarities and differences between financial items.
5. Materiality: The reports take into account the materiality principle, which states that an item’s significance should be considered when it is reported. All transactions, regardless of their size, are recorded and reported.

Conclusion

Crypto accounting and audit reports play a pivotal role in the effective management of digital assets. They ensure transparency, accuracy, regulatory compliance, audit preparedness, and informed decision-making. As the world of digital currencies continues to evolve, the importance of these reports will only grow.

At request.finance, we understand the complexities of managing digital assets and strive to simplify this process. Our suite of tools, including detailed crypto accounting reports, are designed to give you more control and insight into your cryptocurrency holdings.

Don’t let the complexity of cryptocurrency management hold you back. Take advantage of consola.finance’s IFRS compliant accounting software today. Navigate the dynamic world of digital currencies with confidence and make informed decisions about your digital assets. Explore our offerings and start your journey towards effective and efficient crypto asset management.