Valuation, Accounting Principles, and Classification of Assets in the Metaverse

Year 2024, Volume: 4 Issue: 1, 43 - 53, 30.06.2024

Isik Akin , Meryem Akın

https://doi.org/10.57019/jmv.1412352

Cited By: 1

Abstract

This study explores the valuation methods, accounting principles, and asset classification systems needed for accurate financial reporting in the Metaverse. The unique characteristics of virtual assets in the Metaverse pose challenges for traditional valuation methods and require the development of comprehensive and adaptable approaches. This study utilizes qualitative research methods, including in-depth interviews with accounting professionals in Bath and Bristol, UK. Fourteen accountants were selected based on their expertise in accounting and their understanding of the Metaverse. The findings reveal that effective governance, regulatory mechanisms, and community-driven protocols influence asset values in the Metaverse. It is shaped by factors such as engagement, scarcity, and competition. Tailored accounting principles should address legal recognition, accurate tracking, jurisdictional restrictions, and risk management. Compliance with regulations, transparent reporting, and collaboration with regulatory authorities are crucial, alongside integrating innovative technologies like blockchain for robust accounting practices.

Keywords

Metaverse, Virtual Assets, Accounting Practices, Asset Valuation, Asset Classification

Ethical Statement

Ethical approval has been obtained from Bath Spa University before conducting the interview.

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