The Venezuelan Federation of Public Accountants (FFCV, for its acronym in Spanish) this week published the final version of the regulation governing the holding and preparation of financial statements expressed in the cryptocurrency Petro. The initiative sets out the guidelines to be followed by natural and legal persons to keep their accounting records in both Bolivars and Petros, which also broadens the legal framework regulating the circulation of cryptoassets in the Venezuelan economy. The measure is already in force.
The key aspects of the initiative are:
- An institution has control of a cryptoasset when it is deposited in an e-wallet or any other computer program belonging to the institution and it can perform transactions using this as a digital means of payment.
- The difference between the price paid for a cryptoasset and its current market value must be recorded in the “Cryptoasset Income and Expenses” column in the entity’s books.
- Any cryptoassets that the entity expects to use in the twelve months following the reporting period are classified as ‘current assets’, whereas all others are to be classified as ‘non-current assets’.
- The entity must also indicate the nature of the activities of each cryptoasset group in its books as well as the source of information used to measure its value. There should also be a section showing any changes in the market value of all the cryptoassets owned, and any income or expense related to the sales/purchase of cryptoassets.