Read the following case:

High as a Kite (HAAK)

Your friend recently started a new cannabis retail company called High as a Kite (HAAK). HAAK sells cannabis (marijuana) in various forms for medical use. HAAK is located in Missouri and is compliant with state and local regulations. However, possessing, buying, or selling marijuana remains a federal crime. Accordingly, many banks are unwilling to provide banking services for cannabis retailers. Therefore, HAAK is accepting customer payments in two forms: cash and cryptocurrency.

Accounting for cash sales is straightforward and requires no analysis. HAAK pays all of its employees with cash properly documenting the payments and appropriate withholdings. In addition, they pay for many other expenditures with cash. But HAAK uses cryptocurrency to pay many vendors and holds the remainder for investment purposes in anticipation of a rise in the value of the cryptocurrency.

Typical transactions use fiat currency, such as dollars, yen, euros, etc., to pay bills and purchase investments. These fiat currencies are controlled, regulated, and or backed by governments. They are considered legal tender. Banks facilitate the use of legal tender through credit card systems, checking accounts, and the sale of investments.

Cryptocurrency is a digital alternative payment tool and investment tool. In a variety of formats, cryptocurrency is decentralized and unregulated. They can be purchased or received in a peer-to-peer transaction, such as purchasing medical marijuana from HAAK.

Cryptocurrency is defined by Cryptopedia as:

A cryptocurrency is the native asset of a blockchain network that can be traded, utilized as a medium of exchange, and used as a store of value. A cryptocurrency is issued directly by the blockchain protocol on which it runs, which is why it is often referred to as a blockchains native currency. In many cases, cryptocurrencies are not only used to pay transaction fees on the network but are also used to incentivize users to keep the cryptocurrencys network secure. Source: Cryptopedia

Keeping track of the peer-to-peer exchange necessitates a ledger that tracks ownership of the cryptocurrency. Blockchain is used to maintain the ledger. In addition to cryptocurrency, other crypto-assets include tokens and stablecoins. HAAK is not considering accepting these alternatives.

Your friend asks you a few important questions regarding the classification and measurement of the cryptocurrency used for transactions as well as the cryptocurrency held for investment. She is considering taking HAAK global, and IFRS reporting is essential.

From the standpoint of Accounting Theory, there are many alternatives available in theory.... How should the Companys holdings of cryptocurrency (cryptocurrency used for transactions and the cryptocurrency held for investments) be classified in the statement of financial position under U.S. GAAP and IFRS Standards?

Policymakers had numerous options:

Cash or Financial asset other than Cash

Inventory

Intangible assets

Explain why each of these options would have or would not have been appropriate. Again, examine each of the choices above for both the cryptocurrency used for transactions and the cryptocurrency held for investments