CRYPTOCURRENCY : DISCLOSURE REQUIREMENT UNDER REVISED SCHEDULE III

Cryptocurrency is the newly emerging digital currency in the world. It uses blockchain technology. Countries all over the world have not accepted it as a digital currency. Recently, a country called ‘El Salvador’ has declared “Bitcoin” (the first cryptocurrency ever known) as its official currency. There is no particular regulatory body to govern the transactions in cryptocurrencies. In India, the Ministry of Corporate Affairs has taken steps to require Companies to disclose their transactions in cryptocurrencies in their financial statements.

 

These changes in the reporting requirements have to be disclosed for the financial year 2021-22 and onwards. These charges are expected to bring more transparency to the financial statements.

 

The following details or information are to be provided in the financial statements of a Company.

Sl.No.	Particulars	FY 2021-22	FY 2020-21
1	Profit or loss on transactions involving Cryptocurrency
2	Amount of Cryptocurrency held as at the reporting date
3	Deposits/advances received by any persons to trade or to invest in cryptocurrency

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CA Ramakrishna Sanjay