International Financial Reporting Standards (IFRS) are a set of accounting rules designed to provide consistency and transparency in financial reporting across various industries and regions. These standards are developed by the International Accounting Standards Board (IASB) and are used by companies to prepare their financial statements.When it comes to cryptocurrencies, IFRS plays a crucial role in how digital assets are recognized, measured, and reported. The increasing adoption of cryptocurrencies has sparked discussions on how to account for assets like Bitcoin and Ethereum under existing IFRS standards.Issues such as classification—whether cryptocurrencies should be treated as cash, inventory, or intangible assets—are critical. Additionally, the treatment of transactions involving cryptocurrencies, including potential impairments and fair value assessments, needs clear guidelines.As more businesses engage with cryptocurrencies, following IFRS helps ensure that financial statements are reliable and comparable, giving investors and stakeholders a clearer understanding of a company’s position and performance. This compliance can also enhance investor confidence in the growing market for digital assets.