Given the ever-increasing number of ICOs being conducted, some institutions have raised questions regarding how to account tokens in the financial statements of a firm since we were dealing with a new class of assets.
If you are running a one-hundred-year-old firm selling cars and you are willing to issue tokens to allow people to purchase certain kinds of products or services, how would you proceed?
You would launch an ICO where you will sell newly created crypto tokens against, say, dollars. This is a case where you should consider the following questions:
- How would you account for the funds that were raised on your balance sheet?
- How would you account for the remaining tokens in your profit and loss (P&L) statement?
These questions are currently being discussed in several jurisdictions over the world. Switzerland has a very crypto-friendly...