Business consulting services
Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle.
Business process solutions
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
Business risk services
The relationship between a company and its auditor has changed. Organisations must understand and manage risk and seek an appropriate balance between risk and opportunities.
As organisations become increasingly dependent on digital technology, the opportunities for cyber criminals continue to grow.
Forensic and investigation services
At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
Mergers and acquisitions
Globalisation and company growth ambitions are driving an increase in M&A activity worldwide. We work with entrepreneurial businesses in the mid-market to help them assess the true commercial potential of their planned acquisition and understand how the purchase might serve their longer- term strategic goals.
Recovery and reorganisation
Workable solutions to maximise your value and deliver sustainable recovery
Transactional advisory services
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
The International Financial Reporting Standards (IFRS) are a set of global accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of public company financial statements. At Grant Thornton, our IFRS advisers can help you navigate the complexity of financial reporting from IFRS 1 to IFRS 17 and IAS 1 to IAS 41.
Audit quality monitoring
Having a robust process of quality control is one of the most effective ways to guarantee we deliver high-quality services to our clients.
Global audit technology
We apply our global audit methodology through an integrated set of software tools known as the Voyager suite.
Corporate and business tax
Our trusted teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
Direct international tax
Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
Global mobility services
Through our global organisation of member firms, we support both companies and individuals, providing insightful solutions to minimise the tax burden for both parties.
Indirect international tax
Using our finely tuned local knowledge, teams from our global organisation of member firms help you understand and comply with often complex and time-consuming regulations.
Innovation and investment incentives
Dynamic businesses must continually innovate to maintain competitiveness, evolve and grow. Valuable tax reliefs are available to support innovative activities, irrespective of your tax profile.
Private client services
Our solutions include dealing with emigration and tax mitigation on the income and capital growth of overseas assets.
The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public
Tax policies are constantly evolving and there are a number of complex changes on the horizon that could significantly affect your business.
The popularity of cryptocurrencies has soared in recent years, yet they do not fit easily within IFRS’ financial reporting structure. For example, an approach of accounting for holdings of cryptocurrencies at fair value through profit or loss may seem intuitive but is incompatible with the requirements of IFRS in most circumstances. This Viewpoint explores the acceptable methods of accounting for holdings in cryptocurrencies while touching upon other issues that may be encountered.
IAS 38 ‘Intangible Assets’
For reasons explained in this Viewpoint, our view is that in the majority of cases, it will be appropriate to account for them in accordance with IAS 38 ‘Intangible Assets’ either at cost or at revaluation. Use of the revaluation method depends on there being an active market for the cryptocurrency in concern.
In limited circumstances, it may be appropriate for an entity to account for cryptocurrency assets in accordance with the guidance set out in IAS 2 ‘Inventories’ for commodity broker-traders. IAS 2’s default measurement approach is to recognise inventories at the lower of cost and net realisable value. However, the Standard states that commodity broker-traders are instead required to measure their inventories at fair value less costs to sell, with changes in fair value less costs to sell being recognised in profit or loss in the period of the change. Our view is that this will only be appropriate in narrow circumstances where cryptocurrency assets are acquired by the reporting entity with the purpose of selling them in the near future and generating a profit from fluctuations in price or broker-traders’ margin.
IASB - finding a solution
We are aware that accounting for cryptocurrency assets under IAS 38 is neither very satisfying nor intuitive. Accounting for the assets at cost may have little resemblance to their worth, while the mechanics of the revaluation method with its requirements to recognise gains and losses in profit and loss in some circumstances and in other comprehensive income in others, are complicated. We would therefore encourage the IASB to undertake a project addressing the accounting for these assets.
Other issues to be aware of
- Currency translation - cryptocurrencies will need to be translated into an entity’s functional currency in accordance with the requirements of IAS 21 ‘The Effects of Changes in Foreign Exchange Rates’. In terms of initial recognition, this means that a cryptocurrency holding will be recorded using the spot exchange rate between the functional currency and the cryptocurrency at that date.
Disclosure - entities holding cryptocurrency assets will need to comply with the disclosure requirements of either IAS 2 or IAS 38 as appropriate. Given that cryptocurrencies do not fit easily within the IFRS framework, entities may need to consider additional disclosures in order to comply with the overall objective in IAS 1 ‘Presentation of Financial Statements’ which is to provide useful information to the users of the financial statements.
Mining issues - cryptocurrency mining describes the process in which transactions for various forms of cryptocurrency are verified and added to the blockchain digital ledger. A number of additional issues arise for entities that are ‘mining’ cryptocurrencies. Cryptocurrency ‘miners’ use large amounts of computing power to solve blockchain algorithms. Once a block has been solved by the miner they may, depending on the mining algorithm, be entitled to ‘transaction fees’ as consideration for verifying cryptocurrency transactions and entering them in the blockchain ledger.
Applying IFRSs in challenging situations
Our ‘IFRS Viewpoint’ series provides insights from our global IFRS team on applying IFRSs in challenging situations. Each edition focuses on an area where the Standards have proved difficult to apply or lack guidance. A future IFRS Viewpoint will explore other more complex issues, such as those relating specifically to cryptocurrency miners.