This instruction describes how to record cryptocurrency (e.g., USDT) transactions in FirstBit Software, ensuring that financial results are reflected in Finance Income / Finance Expenses, rather than in Revenue / Operating Income. This example has been prepared solely for illustrative purposes to demonstrate a possible approach to the accounting treatment of Cryptocurrency. The Company should independently assess the applicability of the relevant IFRS standards, UAE regulatory requirements, and related tax implications based on the specific facts and circumstances. Where appropriate, separate advice from auditors or professional advisers is recommended.
To record transactions in accordance with the company’s accounting policy, you must first create a dedicated GL account for cryptocurrency.
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Presentation in financial reports:
Purchase of cryptocurrency is recorded as a debit to the selected cryptocurrency account, increasing the balance of the crypto asset, with no impact on the Profit & Loss statement.
Sale of cryptocurrency is recorded as a credit to the selected cryptocurrency account for the cost of the sold units, and the resulting gain or loss is recognized in the Profit & Loss statement as Finance Income or Finance Expenses.
Recording Profit / Loss.
Create Other Income / Other Expense Document:
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Presentation in financial reports:
Trial Balance
Purchase of cryptocurrency is recorded as a debit to the selected cryptocurrency account, increasing the balance of the crypto asset.
Sale of cryptocurrency is recorded as a credit to the selected cryptocurrency account for the cost of the sold units.
The result of the sale (profit or loss) is recorded in a separate account that does not affect Revenue or Operating income.
Income Statement
In the Profit & Loss report, this is reflected under the Finance Income section as either income or expense.
Please Note: The approach ensures crypto is treated as a financial asset, not as a product sale.
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