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The Informational Content of Financial Statements Under Crypto Currencies and Their Impact on Investor decisions
Corresponding Author(s) : Muna Kamel Hamad
American Journal of Economics and Business Management,
Vol. 8 No. 2 (2025): February
Abstract
The research aims to show the reflection of dealing in digital currencies on the informational content of the financial statements (statement of financial position, income statement, statement of other comprehensive income, and statement of cash flows) and according to the options offered for the classification of digital currencies (cash, intangible asset, financial instrument, inventory) and then measure the impact of disclosure of digital currencies on investors' decisions through statistical analysis of the opinions of a sample of investors and academics specialized in accounting The sample size was (100) respondents distributed over (3) countries Arab included Iraq, Egypt, and Saudi Arabia, Abstract The research aims to show the reflection of dealing in digital currencies on the informational content of the financial statements (statement of financial position, income statement, statement of other comprehensive income, and statement of cash flows) and according to the options offered for the classification of digital currencies (cash, intangible asset, financial instrument, inventory) and then measure the impact of disclosure of digital currencies on investors' decisions through statistical analysis of the opinions of a sample of investors and academics specialized in accounting The sample size was (100) respondents distributed over (3) countries Arab included Iraq, Egypt, and Saudi Arabia.
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- M. E. Abdel Tawab, "Problems of accounting for cryptocurrencies in light of the requirements of the International Financial Reporting Standards (IFRS): A field theoretical study," Journal of Accounting Thought, vol. 24, no. 1, 2020.
- R. M. Abdou, H. M. Kadous, and A. E. Hamdallah, "Current accounting practices for bitcoins," Scientific Journal of Business Research, vol. 40, no. 1, 2021.
- A. Y. M. A. Abdullah, "Digital currencies: Their origin, development, and risks of dealing in them," Journal of the Faculty of Commerce for Scientific Research, no. 73, Assiut University, 2021.
- A. N. O. Al Zaabi, "Legal regulation of innovative digital currencies in UAE and comparative legislation: A comparative analytical study," M.S. thesis, College of Law, United Arab Emirates University, UAE, 2018.
- G. A. A. Al-Bayaa, "Cryptocurrencies and blockchain technology in Africa: Presenting opportunities and challenges," Scientific Journal of Financial and Commercial Studies and Research, vol. 1, no. 2, pt. 1, 2020.
- W. Al-Hayali and M. Jabari, "Accounting measurement and recognition of cryptocurrencies in light of the requirements of International Financial Reporting Standards (IFRS): Suggested models," Arab Academic Scientific Journal in Denmark, no. 32, 2024.
- A. H. Q. Al-Najjar, Cryptocurrencies: An Economic Sharia Accounting Study, 1st ed. Amman, Jordan: Dar Al-Nafais for Publishing and Distribution, 2019.
- N. Alsalmi, S. Ullah, and M. Rafiquem, "Accounting for digital currencies," Research in International Business and Finance, vol. 64, 2023.
- M. Amal, "Cryptocurrencies: Opportunities and challenges of using them," Al-Bashaer Economic Magazine, vol. 6, no. 2, 2020.
- D. Arner, J. Barberis, and R. Buckley, "Fintech, regtech, and the reconceptualization of financial regulation," Northwestern Journal of International Law & Business, 2017.
- R. Bryer, "Cryptocurrency and the full disclosure principle in accounting," Journal of Financial Reporting, vol. 12, no. 2, pp. 45–59, 2020.
- E.-B. F. Cain, "Problems of using digital currency when deciding a tax on electronic exchange: An exploratory study," Alexandria Journal for Accounting Research, no. 1, Alexandria University, 2021.
- N. Gandal and H. Halaburda, "The cryptocurrency and its impact on accounting and financial reporting," Journal of Financial Regulation, 2016.
- G. R. Yadav, "Impact of digital currency on management accounting and finance," International Journal of Advanced Research in Science, Communication and Technology (IJARSCT), 2023.
- J. Golosova and A. Romanovs, "The advantages and disadvantages of blockchain technology," in Proc. 59th Int. Sci. Conf. Information Technology and Management Science of Riga Technical University (ITMS), 2018.
- A. Hagiwara, "Taxation challenges in the digital economy: The case of the People’s Republic of China," Journal of Economic and Management, vol. 8, no. 2, pp. 20–56, 2019.
- J. Harris and A. Morris, "Cryptocurrency and the impact on revaluation policies in accounting," Journal of Financial Accounting Research, vol. 14, no. 2, pp. 101–115, 2020.
- T. Harris, S. Munday, and D. Turner, "Accounting for cryptocurrencies: A review of international approaches and standards," International Journal of Accounting Research, 2021.
- J. Hughes and M. Coggins, "Taxation of cryptocurrencies and financial reporting," International Journal of Taxation and Financial Planning, 2020.
- M. Z. Ibrahim, "A proposed framework to treat potential tax accounting problems of cryptocurrency activity in Egypt: A field theoretical study," Journal of Commerce and Finance, no. 2, Alexandria University, 2022.
- P. Katsiampa, "Cryptocurrency and accounting: A global perspective," Journal of Emerging Technologies in Accounting, 2019.
- A. Krause, "The impact of cryptocurrency on accounting assumptions," International Journal of Accounting Research, vol. 15, no. 3, pp. 121–135, 2020.
- S. Lee and Y. Kim, "Expense recognition and the impact of cryptocurrencies," Journal of Financial Management, vol. 18, no. 4, pp. 230–244, 2019.
- J. Miller and C. Brown, "Monetary assumptions and cryptocurrency: Navigating new challenges," Journal of Financial Accounting Studies, vol. 24, no. 4, pp. 289–303, 2019.
- K. Mohammed, "A proposed framework for measurement, accounting, and tax disclosure of digital currencies," Journal of Accounting Research, vol. 6, no. 2, pp. 165–192, 2019.
- D. Morris, "The impact of cryptocurrency on accounting and financial reporting," Journal of Accounting Research, 2018.
- M. A. M. Shata, "Virtual currencies and their impact on the future of transactions: Reality and future prospects," Economic Journal, issue 37, pt. 1, 2022.
- L. Tawalbia, "The impact of central bank digital currencies on monetary policy," Ph.D. dissertation, Faculty of Economic, Commercial and Marketing Sciences, Shahid Sheikh Alarabi University, 2023.
- C. Wu and Z. Zhou, "The impact of digital currency on accounting and management under the blockchain architecture," International Journal of Education and Humanities, vol. 5, no. 3, pp. 23–27, 2022.
- R. Zohar, "The role of blockchain in accounting and finance: Challenges and opportunities," Journal of Financial Technology, 2020.
- M. Zohdy, "Cryptocurrency and the challenges to the accounting assumptions," International Journal of Financial Reporting, vol. 7, no. 2, pp. 45–60, 2022.
References
M. E. Abdel Tawab, "Problems of accounting for cryptocurrencies in light of the requirements of the International Financial Reporting Standards (IFRS): A field theoretical study," Journal of Accounting Thought, vol. 24, no. 1, 2020.
R. M. Abdou, H. M. Kadous, and A. E. Hamdallah, "Current accounting practices for bitcoins," Scientific Journal of Business Research, vol. 40, no. 1, 2021.
A. Y. M. A. Abdullah, "Digital currencies: Their origin, development, and risks of dealing in them," Journal of the Faculty of Commerce for Scientific Research, no. 73, Assiut University, 2021.
A. N. O. Al Zaabi, "Legal regulation of innovative digital currencies in UAE and comparative legislation: A comparative analytical study," M.S. thesis, College of Law, United Arab Emirates University, UAE, 2018.
G. A. A. Al-Bayaa, "Cryptocurrencies and blockchain technology in Africa: Presenting opportunities and challenges," Scientific Journal of Financial and Commercial Studies and Research, vol. 1, no. 2, pt. 1, 2020.
W. Al-Hayali and M. Jabari, "Accounting measurement and recognition of cryptocurrencies in light of the requirements of International Financial Reporting Standards (IFRS): Suggested models," Arab Academic Scientific Journal in Denmark, no. 32, 2024.
A. H. Q. Al-Najjar, Cryptocurrencies: An Economic Sharia Accounting Study, 1st ed. Amman, Jordan: Dar Al-Nafais for Publishing and Distribution, 2019.
N. Alsalmi, S. Ullah, and M. Rafiquem, "Accounting for digital currencies," Research in International Business and Finance, vol. 64, 2023.
M. Amal, "Cryptocurrencies: Opportunities and challenges of using them," Al-Bashaer Economic Magazine, vol. 6, no. 2, 2020.
D. Arner, J. Barberis, and R. Buckley, "Fintech, regtech, and the reconceptualization of financial regulation," Northwestern Journal of International Law & Business, 2017.
R. Bryer, "Cryptocurrency and the full disclosure principle in accounting," Journal of Financial Reporting, vol. 12, no. 2, pp. 45–59, 2020.
E.-B. F. Cain, "Problems of using digital currency when deciding a tax on electronic exchange: An exploratory study," Alexandria Journal for Accounting Research, no. 1, Alexandria University, 2021.
N. Gandal and H. Halaburda, "The cryptocurrency and its impact on accounting and financial reporting," Journal of Financial Regulation, 2016.
G. R. Yadav, "Impact of digital currency on management accounting and finance," International Journal of Advanced Research in Science, Communication and Technology (IJARSCT), 2023.
J. Golosova and A. Romanovs, "The advantages and disadvantages of blockchain technology," in Proc. 59th Int. Sci. Conf. Information Technology and Management Science of Riga Technical University (ITMS), 2018.
A. Hagiwara, "Taxation challenges in the digital economy: The case of the People’s Republic of China," Journal of Economic and Management, vol. 8, no. 2, pp. 20–56, 2019.
J. Harris and A. Morris, "Cryptocurrency and the impact on revaluation policies in accounting," Journal of Financial Accounting Research, vol. 14, no. 2, pp. 101–115, 2020.
T. Harris, S. Munday, and D. Turner, "Accounting for cryptocurrencies: A review of international approaches and standards," International Journal of Accounting Research, 2021.
J. Hughes and M. Coggins, "Taxation of cryptocurrencies and financial reporting," International Journal of Taxation and Financial Planning, 2020.
M. Z. Ibrahim, "A proposed framework to treat potential tax accounting problems of cryptocurrency activity in Egypt: A field theoretical study," Journal of Commerce and Finance, no. 2, Alexandria University, 2022.
P. Katsiampa, "Cryptocurrency and accounting: A global perspective," Journal of Emerging Technologies in Accounting, 2019.
A. Krause, "The impact of cryptocurrency on accounting assumptions," International Journal of Accounting Research, vol. 15, no. 3, pp. 121–135, 2020.
S. Lee and Y. Kim, "Expense recognition and the impact of cryptocurrencies," Journal of Financial Management, vol. 18, no. 4, pp. 230–244, 2019.
J. Miller and C. Brown, "Monetary assumptions and cryptocurrency: Navigating new challenges," Journal of Financial Accounting Studies, vol. 24, no. 4, pp. 289–303, 2019.
K. Mohammed, "A proposed framework for measurement, accounting, and tax disclosure of digital currencies," Journal of Accounting Research, vol. 6, no. 2, pp. 165–192, 2019.
D. Morris, "The impact of cryptocurrency on accounting and financial reporting," Journal of Accounting Research, 2018.
M. A. M. Shata, "Virtual currencies and their impact on the future of transactions: Reality and future prospects," Economic Journal, issue 37, pt. 1, 2022.
L. Tawalbia, "The impact of central bank digital currencies on monetary policy," Ph.D. dissertation, Faculty of Economic, Commercial and Marketing Sciences, Shahid Sheikh Alarabi University, 2023.
C. Wu and Z. Zhou, "The impact of digital currency on accounting and management under the blockchain architecture," International Journal of Education and Humanities, vol. 5, no. 3, pp. 23–27, 2022.
R. Zohar, "The role of blockchain in accounting and finance: Challenges and opportunities," Journal of Financial Technology, 2020.
M. Zohdy, "Cryptocurrency and the challenges to the accounting assumptions," International Journal of Financial Reporting, vol. 7, no. 2, pp. 45–60, 2022.