Valuation, accounting principles, and classification of assets in the metaverse

Akin, I ORCID: 0000-0003-0918-7441 and Akin, M ORCID: 0000-0002-9021-869X (2024) 'Valuation, accounting principles, and classification of assets in the metaverse.' Journal of Metaverse, 4 (1). pp. 43-53. ISSN 2792-0232

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

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.

Item Type:	Article
UN SDGs:	Goal 8: Decent Work and Economic Growth
Keywords:	metaverse, virtual assets, accounting practices, asset valuation, asset classification
Subjects:	H Social Sciences > HG Finance
Divisions:	Bath Business School
Identification Number:	https://doi.org/10.57019/jmv.1412352
Date Deposited:	28 Mar 2024 13:59
Last Modified:	28 Mar 2024 13:59
URI / Page ID:	https://researchspace.bathspa.ac.uk/id/eprint/16179

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