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It wouldn't, according to accounting principles. It would be accounted for as deposits received, with a balancing liability for when the customer makes a purch
by tomhoward 9y ago
It wouldn't, according to accounting principles. It would be accounted for as deposits received, with a balancing liability for when the customer makes a purchase or withdrawal.
They would only record revenue when they charge a transaction fee, or any other charge/income that can't be used by/returned to the customer at their discretion. Revenue is only revenue if it doesn't incur a matching liability.
- aardvark291 9y agoI agree that that's how it should work, but I wouldn't be surprised if Coinbase wasn't completely orthodox in their accounting. Replies below indicate that they may indeed be counting customer deposits as "revenue".
- sethgecko 9y agoThey have like 20m users, that would mean $50 deposited per users so.. no