Bitcoin Accounting Research

Memo Scenario:

You have been recently promoted as the Controller for a fictitious company. With the emergence and widespread of digital currency use, the company is considering accepting bitcoins as a legitimate source of funds for exchange of goods purchased online. In good practice, you have just performed limited research on the topic as it relates to the Accounting profession. You will address the advantages and disadvantages of adding bitcoin as a form of online payment.

Your task is to provide a memo addressed to the Officers of the company. Below is guidance that will help you construct the memo.

Memo Guidance:

Introduction:

In the introductory paragraph, address the task that is before you. Begin the memo providing a thorough bitcoin including any additional background information regarding the digital currency.

Body:

In the body of the memo, present advantages and disadvantages of bitcoin use in the industry sector with an accounting focus. Some of your points could include (but not limited to) the impact that the use of bitcoin will have on company operations, as well as the impact bitcoin accounting will have on financial statements.

Conclusion:

End the memo summarizing your viewpoints on whether or not the company should proceed plan to incorporate bitcoin use in operations. Also mention how the impact of the FASB’s possible development of accounting guidance will heavily influence the company’s need accept digital currency now or within the next few years.