In the dynamic world of cryptocurrency, companies often establish holding companies in tax havens and operate across multiple jurisdictions. When it comes to preparing consolidated financial statements, particularly for the first time, the process can be daunting for companies with digital assets on their balance sheets. This article will help you understand consolidation and cover the following topics:
- What is Financial Statement Consolidation and Its Necessity
2. Challenges of Financial Statement Consolidation
- Differences in Generally Accepted Accounting Principles (GAAP)
- Functional Currency vs. Reporting Currency
- Intercompany Balances and Transactions
- Use of Different Accounting Systems
- Accounting Treatment During Changes in Control
3. Issues Specific to Crypto Entities
- Intercompany Balances Denominated in Cryptocurrency
- Frequent Changes in Company Structure
- Uniform Accounting Treatment for Cryptocurrencies
https://www.theaccountantquits.com/articles/consolidation-of-entities-using-digital-assets