Crypto & Derivative Accounting
Accounting frameworks, valuation, regulatory reporting, and internal controls for digital assets, derivatives, tokenised instruments, and structured products.
Overview
What this practice does
Accounting frameworks and regulatory reporting for digital assets, derivatives, and crypto-native funds. We support transaction accounting, valuation, tax, audit readiness and fund/DAO reporting.
Crypto · Funds · Treasury
- IFRS 9
- ASC 815
- CVA/DVA
- Hedge accounting
- Tokenised assets
Accounting treatment
From transaction to journal entry
Pick a transaction to see how it is recorded under IFRS and US GAAP. Amounts are illustrative, in USD.
Buy 0.2 BTC for 10,000.
| Account | Debit | Credit |
|---|---|---|
| Intangible asset: BTC | 10,000 | |
| Cash | 10,000 |
Held for investment: an intangible asset under IAS 38, initially at cost. Broker-traders may apply IAS 2 at fair value less costs to sell.
Talk to the digital assets teamIllustrative entries. The right treatment depends on the facts, the entity’s business model and its accounting policies.
Approach
Capabilities & Offerings
Transaction Recording & Bookkeeping
- Classification of crypto receipts, payments, swaps, and staking rewards
- Recording of derivative contracts (futures, options, perpetuals)
- Wallet and exchange reconciliation (CEX & DEX)
- On-chain transaction import and matching
- Multi-currency and multi-wallet ledger management
Gains, Losses & Cost Basis Computation
- Capital gains calculation — FIFO, LIFO, WAC, specific identification
- Realised and unrealised P&L reporting for derivatives
- Mark-to-market (MTM) valuations for open positions
- DeFi income quantification (yield, liquidity mining, airdrops)
- NFT acquisition cost and disposal gain tracking
Derivative-specific Accounting
- Futures and perpetual contracts — P&L computation and margin tracking
- Options — premium amortisation, exercise/expiry treatment
- Swap accounting — crypto-to-crypto and crypto-to-fiat
- Hedge accounting assessment and documentation (IFRS 9)
- Funding rate income/expense recognition
Tax Compliance (UAE & Cross-Border)
- UAE Corporate Tax compliance for crypto-holding entities
- VARA-aligned reporting for licensed VASPs
- Transfer pricing documentation for intra-group crypto transfers
- Substance documentation for free zone entities holding crypto assets
- Country-by-country reporting support for multinational crypto groups
Financial Statement Preparation
- Balance sheet presentation of digital assets (IFRS or US GAAP)
- Income statement classification — trading income vs. investment gains
- Disclosure notes for crypto holdings, risks, and accounting policies
- Preparation of management accounts for crypto funds and treasury operations
- Regulatory financial statements for ADGM-licensed entities
Audit Readiness & Support
- Preparation of crypto transaction audit trails
- On-chain evidence packs for external auditors
- Proof of reserves documentation support
- Responding to auditor queries on digital asset holdings
- Internal controls design for crypto treasury operations
Fund & DAO Accounting
- NAV computation for crypto funds and liquid token funds
- Investor capital account maintenance
- Management fee and performance fee calculation
- LP reporting packages
- DAO treasury accounting and grant disbursement records
Advisory & Structuring Support
- Accounting impact assessment of new token structures or DeFi strategies
- Review of accounting policies for digital asset businesses
- Pre-licensing accounting readiness reviews (VARA / ADGM)
- CFO-on-demand for crypto startups and Web3 businesses
Focus areas
Where we go deep
IFRS for crypto assets
Classification and measurement of crypto assets under IFRS, and how the same positions look under US GAAP.
Read more →VARA and UAE regulatory reporting
Financial and regulatory reporting for virtual asset service providers licensed in Dubai, ADGM and DIFC.
Read more →Wallet reconciliation and proof of reserves
Matching on-chain balances, exchange accounts and the general ledger, every period, with an audit trail.
Read more →Fund and trust accounting
NAV, investor reporting and financial statements for funds, trusts and treasuries holding digital assets.
Read more →
Need help with crypto accounting and derivatives?
We provide end-to-end accounting, tax, audit and fund reporting support tailored for crypto businesses, funds and treasuries across UAE and international jurisdictions.
Speak with an adviser