BTC Treasury Workstation
Forensic simulation of FRS 102 Section 18. This workstation models the structural accounting friction of holding Bitcoin on a UK balance sheet under the “Cost Model.”
- 1. Build Your Pool Add historical purchase tranches to calculate your Section 104 Weighted Average Cost (WAC).
- 2. Stress the Asset Use the slider to simulate volatility. UK Law requires you to recognise the “Lower of Cost or Market.”
- 3. Identify Impairment Observe how “Red” figures represent a permanent hit to your company’s distributable reserves.
A mandatory impairment event has been triggered. This creates a permanent non-cash loss on the P&L and reduces distributable reserves. Check dividend legality before proceeding.
The math is clinical.
The legal exposure is personal.
The workstation above simulates the accounting mechanics, but it cannot mitigate the Director’s Risk. Under the Companies Act 2006, a director who allocates working capital to Bitcoin based on unregulated advice faces personal liability if that decision impairs the interests of creditors.
The law does not distinguish between a “sound asset” and an “indefensible advice.” If your company subsequently cannot meet its obligations, “Bitcoin’s 16-year CAGR” is not a legal defence.
In *The UK Bitcoin Treasury Reality*, Paul Faulkner provides the forensic intelligence to bridge this gap:
- The Seven Conditions of Legitimacy for a UK Bitcoin strategy.
- How FRS 102 impairment traps can accidentally render your dividends unlawful.
- The forensic checklist required before your next reporting date.
Don’t bet your personal liability on a US narrative. Understand the UK reality.
Order the Forensic Intelligence
