Cryptocurrency Accounting & Taxation

Curriculum Guideline

Effective Date:
Return to Course
Print Guideline
Course
ACCT 3421
Discontinued
No
Course Code
ACCT 3421
Descriptive
Cryptocurrency Accounting & Taxation
Department
Accounting
Faculty
Commerce & Business Administration
Credits
3.00
Start Date
End Term
Not Specified
PLAR
No
Semester Length
15 Weeks
Max Class Size
35
Course Designation
None
Industry Designation
None
Contact Hours

Lecture: 2 hours/week

and

Seminar: 2 hours/week

Method(s) Of Instruction
Lecture
Seminar
Learning Activities

Lecture and/or seminar

All methods of instruction apply to in class, hybrid and/or online modes of learning.

Course Description
This course is designed to empower students with a deep understanding of cryptocurrency transactions, taxation principles, and blockchain technology. Through a blend of theory, practical examples, and real-life scenarios, students will be well-equipped with fundamental skills necessary to navigate the evolving world of cryptocurrencies and contribute effectively in financial and accounting roles within the crypto space.
Course Content
  • Fundamentals of Blockchain
  • Presentation of Cryptocurrency on Financial Statements
  • Crypto Transaction Structure
  • Crypto Tax Structure
  • Explorer Training
  • Specialized Crypto Transaction
  • Tax Software Training
Learning Outcomes

At the end of the course, the successful student should be able to:

1. Fundamentals of Blockchain 

  • Explain the historical context behind the invention of Bitcoin and its relation to the 2008 financial crisis.
  • Describe the fundamentals of blockchain technology, including blocks, data recording, and distributed ledger technology.
  • Assess the significance and potential risks associated with Bitcoin as a store of value and its role in facilitating seamless cross-border financial transfers.

2. Presentation of Cryptocurrency on Financial Statements

  • Analyze the accounting principles and standards applicable to the presentation of cryptocurrency holdings on financial statements.
  • Assess the potential risks and implications of cryptocurrency presentation on financial statement users, such as investors and regulators.
  • Interpret the financial statement impact of changes in cryptocurrency valuations over time.

3. Crypto Transaction Structure

  • Differentiate between various types of crypto transactions, including crypto-to-crypto and crypto-to-fiat swaps or trades.
  • Explore the intricacies of staking and unstaking, with practical examples and an understanding of rewards.
  • Explain liquidity pools, their operation, and the challenges associated with them.
  • Analyze borrowing mechanisms in the crypto world and calculate borrowing costs.

4. Crypto Tax Structure

  • Analyze the tax regulations and guidelines governing the treatment of cryptocurrency gains and losses.
  • Examine the tax treatment of various cryptocurrency activities, including mining, trading, and receiving cryptocurrency as payment.
  • Evaluate tax strategies for minimizing tax liabilities associated with cryptocurrency gains.
  • Navigate the tax implications of staking, unstaking, liquidity pools, and Non-Fungible Tokens (NFTs).

5. Explorer Training

  • Differentiate and evaluate risks associated with centralized and on-chain custody of crypto assets.
  • Use blockchain explorers to monitor and verify crypto transactions.
  • Explore different types of blockchains and their respective explorers.
  • Analyze the potential risks when utilizing blockchain explorers to monitor and verify crypto transactions.

6. Specialized Crypto Transaction

  • Develop strategies for identifying crypto transactions, including input data, smart contracts, and project details.
  • Describe the concept of Non-Fungible Tokens (NFTs) and the distinctions between 721 and 1155 tokens.
  • Analyze and evaluate risk factors in various types of crypto transactions, such as swaps, staking, liquidity pool actions, borrowing, and airdrops.

7. Tax Software Training

  • Import data from different exchanges and wallets into leading crypto tax software on the market.
  • Evaluate the risks associated with using leading crypto tax software on the market.
  • Reconcile various types of crypto transactions, including income, expenses, gifts, and more.
  • Explore DeFi platforms, staking, DEXs, collateralized debt positions, and yield aggregator services.
Means of Assessment

Assessment will be in accordance with the Douglas College Evaluation Policy.

Individual assignments and/or quizzes: 30% - 40%

Participation and/or presentation: 10%

Group project(s): 30%

Final Exam:   20% - 30%

Students must obtain a minimum of 50% on invigilated assessments, with the 50% calculated on a weighted average basis. Students not meeting this criterion will receive a grade of D if their overall course weighted average is at least 50%, otherwise a grade of F will be assigned.

Invigilated assessments include in-class quizzes, in-class tests, midterm exam(s), and the final exam.

Students may conduct research as part of their coursework in this class. Instructors for the course are responsible for ensuring that student research projects comply with College policies on ethical conduct for research involving humans, which can require obtaining Informed Consent from participants and getting the approval of the Douglas College Research Ethics Board prior to conducting the research.

Textbook Materials

Students may need to purchase published case studies, and/or other textbook and materials approved by the department.

Prerequisites

(Acct 1235 or ACCT 1210 or ACCT 3008) AND (CSIS 1190 or BUSN 2429 or equivalent)

OR currently active in one of the following:

PBD Accounting
PBD Advanced Supply Chain Management 
PBD Computer and Information Systems
PBD Digital Marketing 
PBD Finance
PBD International Supply Chain Management
PDD Accounting 
PDD Accounting Studies
PDD Data Analytics
PDD Financial Analysis
PDD Supply Chain Management

ACCT 3370 is recommended.