Introduction
This guide provides step-by-step instructions for handling cryptocurrency cost accounting, fair value calculations, and journal entries within the Fair Value Adjustment module. Learn how to select cost methods, manage asset records, execute value adjustments, and export calculation reports.
1. Accessing the Fair Value Adjustment Module
- From the project homepage, navigate to the "Valuation" page.
- Under "Valuation", locate and select the "Cryptocurrency" option in the sidebar.
2. Modifying Cost Accounting Methods
- Click the "Cost Accounting Method" button in the top-right corner.
Choose between:
- FIFO (First-In-First-Out)
- Weighted Average Cost
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3. Fair Value Calculation and Journal Entries
Key reporting tables:
| Table Name | Functionality |
|---|---|
| Acquisition Table | Tracks purchase quantities and cost basis of crypto assets/liabilities |
| Holdings Record | Logs batch quantities, costs, and utilization status |
| Disposition Table | Records disposal quantities, prices, costs, and realized gains/losses (auto-generates journal entries) |
| Adjustment Table | Captures unrealized gains/losses from price fluctuations (auto-generates adjusting entries) |
4. Executing Fair Value Calculations
- Click "Recalculate Costs" in the top-right corner to process fair value adjustments.
5. Exporting Calculation Reports
- Select the "Export" button on the right to download fair value computation tables.
FAQ Section
Q: How often should I perform fair value adjustments?
A: We recommend monthly adjustments to maintain accurate financial reporting, though some organizations do quarterly updates.
Q: What's the difference between FIFO and Weighted Average methods?
A: FIFO assumes oldest assets are sold first, while Weighted Average blends all purchase costs. Choose based on your tax strategy and accounting requirements.
Q: Can I customize the export format?
A: Currently exports are standardized CSV files, but future updates may include Excel templates.