Block chain as Decentralized Finance

 The primary intention of block chain development was not to create a new currency, but to
establish principles of a functional decentralized cash payment system (Rosic, 2017)
 Impact 1: Block chain technology will probably impact the way accounting transactions can be
recorded and verified e.g. by the audits (Procházka, 2018)
 Impact 2: Also, crypto currencies are used by companies in daily businesses and as such they
should be accounted for and presented in the financial statements (Procházka, 2018)
 For the purpose of our course we will focus on the first impact
 Project presentation should focus on the following parameters:
o We have to establish the reasons a crypto holds its value. Then focus should be on
adding further value while holding onto the current value
o What are the fundamentals which are at play at this time?
o What are the fundamentals which will be at play in 5 to 10 years of time?
o What business model can be proposed along when we combine the current
fundamentals and fundamentals which will be added in 5 to 10 years of time?
o The idea is to be able to raise money through this system rather than approach an
equity market
 Think of your own business idea and or company which you work / intend to work for. How can
they take their business on Web 3.0 and leverage / unlock the financial potential?
o Raise money / Access to Global Markets
o Document transactions
o Increase customer / vendor confidence in transactions with your company
o Ease of Use of System (Currently not many are aware)
 Presentation: Based on the above propose a business model by proposing use of existing
blockchain, existing cryptocurrency or your own developed cryptocurrency
o Best place to start would be to look for businesses which are trying to leverage this
already and have disclosed their business model.
o Amend the same for your own Pakistani market
o Fix any gaps which exists – atleast in theory

Readings:

 https://www.researchgate.net/profile/David-Prochazka-4/publication/
328894135_Accounting_for_Bitcoin_and_Other_Cryptocurrencies_under_IFRS_A_Comparison_
and_Assessment_of_Competing_Models/links/5bf27839299bf1124fdd128f/Accounting-for-
Bitcoin-and-Other-Cryptocurrencies-under-IFRS-A-Comparison-and-Assessment-of-Competing-
Models.pdf
 Google Scholar keywords: crypto ifrs