"The impact of digital assets on Accounting functions: In light of International Accounting Standards No. (38): An analytical study on a sample of academics and professionals in the city of Erbil

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Dr. Hazim Hashim Mohammed, et. al.


: Digital assets are “content” goods such as software, books, music, or movies which can be digitized and traded on a digital market place. With the increase in trade and ownership of digital assets, several important management issues have arisen. Accounting treatment for digital assets is one important management issue. It is argued that digital assets require regulations in terms of recognition then measurement and disclosure under international accounting standard no. (38). Therefore, the purpose of this research is to discuss the accounting problems that arise as a result of the growing importance of digital assets in the business environment and to propose suggestions based on the accounting concepts and standards. For this purpose, first, the increasing importance of digital assets is briefly explained. Then, the challenge created as a result of expanding trading volume of digital assets are discussed in terms accounting functions with suggestions for the appropriate accounting for digital assets. The two researchers used the analytical approach through distributing 48 questionnaires to academics and professionals in city of Erbil to achieve the objectives of the study and test its hypotheses, after the analysis, the researchers concluded that the digital assets explain 72.7% (coefficient of determination) of the changes in accounting function (and a significant correlation equal to 85.3% (that mean digital assets have a significant effect on the accounting functions in terms of recognition, measurement and disclosure. We offer a roadmap for future researchers to explore and examine which accounting treatments are more suitable for digital assets in terms of recognition, measurement, and disclosure.

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