Page 29 - CMA Journal (Jan-Feb 2026)

Focus Section

(b) Strategic Alignment with Global Compliance: The historical cost for digital assets, especially when
2025 Ordinance aligns domestic governance with the observable market data exists, a view supported by
Financial Action Task Force (FATF) standards, particularly recent accounting studies highlighting the inadequacy
Recommendation 15. Within this framework, all of outdated models in capturing the volatility and
organizations, such as exchanges, custodians, and wallet liquidity characteristics of digital assets 7,8,9
providers, must implement robust Know Your Customer
b) Triple-Entry Accounting- A Paradigm Disruption:
(KYC) and Anti-Money Laundering (AML) procedures,
Blockchain enables a conceptual shift such as triple-entry
along with comprehensive record-keeping mechanisms6.
accounting. Conventional double-entry bookkeeping
The government has signified this through the Pakistan entries show debits and credits in the individual ledgers
Crypto Council (PCC) and PVARA, which have taken of an entity; however, blockchain adds a third record that
strategic steps toward the tokenization of sovereign cannot be altered and is cryptographically secured. It is
assets. This involves exploring the frontiers of capital verifiable by third parties and externally accessible;
markets through blockchain-enabled instruments in hence, the third entry becomes a neutral, authoritative
treasury bills and real estate, to assess how regulatory source of transactional truth that reconciles counterparty
preparedness is being leveraged to unlock new markets records instantly and irrevocably, radically diminishing
for Foreign Direct Investment (FDI) and reshape capital reconciliation disputes, increasing auditability, and
markets. enhancing trust. This model redefines the role of an
auditor by offering a “tamper-evident system of record”
3) Accounting Frontiers: Redefining
that mitigates reconciliation errors, consolidates
Standards and Practices assurance processes within a realistic timeframe, and
provides a distributed audit trail¹0.
The adoption of Blockchain in corporate finance
necessitates a redefinition of accounting’s fundamental
assumptions. Historical cost or delayed
recognition models are based on Debit General Ledger Credit (Receiver’s
non-immediacy, limited volatility, and (Sender’s Digital Transaction Record Smart Contract)
non-distributed assets, and cannot effectively Asset Wallet)
accommodate digital assets.
If amount == 1.3 and sender ==
a) Fair Value Measurement and IFRS ‘0x9f8e...c5d0’ and
1.3 Units receiver == ‘oxab01a3c...f9e0
Considerations: Digital assets do not have a transfer 1.3 to receiver;
record result’
specific standard in the International Financial 1.3 Units finalize;
Record Verify Finalize }
Reporting Standards (IFRS) and must be }
accounted for using existing models, such as
IAS 2 (Inventories) or IAS 38 (Intangible Assets).
Digital assets classified as inventory (held for Smart Contract
sale) can be measured at fair value less costs to
sell, while assets considered intangible can be Transaction ID: 0x9f8e..c5d0 | Timestamp | 2024-10-26 T14:30:00Z | HASH: |
revalued or impaired in accordance with IFRS
Transaction ID: 0x9f8e..c5d0 | Timestamp | 2024-10-26 T14:30:00Z | HASH: 0xab01a3c...f9e00
regulations. There is professional opinion
favouring fair value measurement over Figure 2: Triple Entry Accounting

Table-3: Accounting Standards Relevant to Digital Assets

n
A
Standard Application to Digital Assets Notes foor CMA
g
IAS 38 Intangible assets Digital assets nott held for tradiing require fair value
measurement orr impairment review.
e
IFRS 9 Financial instruments Crypto classified as financial asssets; fair valuee through
y
o
profit/loss
IFRS 13 Fair value measurement Guidance on dettermining market value, espeecially for
a
k
tokenized assets
a
IAS 2 Inventory Trading digital tookens requiress a cost vs net realizable
value evaluation
Source: Author’s Compilation
ICMA’s Chartered Management Accountant, Jan-Feb 2026 27