Point of view from multiple perceptions about Metaverse ecosystem

. The Metaverse has experienced rapid growth in recent years. In 2021, interest in Metaverse skyrocketed. The term "metaverse" refers to a computer-generated world that blends the physical and digital realms and allows users to engage with virtual characters on the internet, trading, or even investing. However, there is limited research about the Metaverse ecosystem, whether its development or the measurement for the digital assets—especially NFTSs and Cryptos. Therefore, researchers perform a qualitative method using a semi-structured interview method and thematic analysis method. The interviews are conducted with individuals who play interactive games or holders of NFTs, Crypto, or any digital assets or expertise. Thirty respondents participated in this research. According to participants' perception, since there are no specific accounting standards related to this, the accounting treatment and the valuation of these assets are adjusted to the existing standards depending on the intention or the purpose of the holder or entity towards the asset. Apart from that, most participants agree that the development of the Metaverse is also still constrained, it requires the right solution so that Metaverse can become a platform that the public can expect as it should be.


Introduction
The Metaverse has been known for 30 years through the creation of the fictional novel by Neal Stephenson.In his view, Metaverse is a place where people can have an alternate life that parallels the real world.According to Matthew Ball, the Metaverse is a vast network of realtime, persistent, simulated, and sustaining worlds of identities, objects, history, payments, and rights, where an infinite number of users experience it at once.In summary, it can be defined that a virtual environment called Metaverse binds 3D virtual through the internet as an interactive platform.
Research entitled "20 and Developed into a Virtual Worlds" aims that virtual reality, augmented reality, mixed reality and Metaverse are strongly connected because Metaverse is a virtual environment in which people can interact via digital objects or avatars, it is a paradigm in which augmented reality (AR), virtual reality (VR), and mixed reality (MR) technologies and content developed.While VR brings objects into the non-real world, AR adds information to the real world [1].The development of VR makes it easier for people to traverse physical distances from the real world and connect.To realize the operation of this virtual world, the community needs the support of various realistic technologies such as development, in which VR makes it easier for humans to enter the virtual world, shortens the distance between virtual and display, and has a greater sense of substitution.
To realize the operation of the Metaverse, a stable media is needed, which requires stability and sustainability.Hence, gaming industry is most likely to have a significant growth in Metaverse because they involved with the similar technology i.e. virtual reality, augmented reality, mixed reality and cross-platform play digital world [2].
Beside its virtual features, Metaverse also comes with the intangible values from various assets.To discover the value, this virtual world has its own currency known as cryptocurrency.Some of game developers already provided digital assets or its own cryptocurrency into their game.A research paper entitled "Cryptocurrency" defined a cryptocurrency or crypto as a medium of exchange in a virtual network that is not reliant on any central authority [3].In addition to that, based on Yaffe-Bellany's article, when transferring money between two parties, such as when it comes to business transactions, the use of traditional intermediaries like banks is no longer necessary thanks to the decentralized nature of cryptocurrencies [4].Like cash, cryptocurrency is not physically present, and it is often not created by a centralized body.In contrast to the central bank and other ultimate or legal organizations, cryptocurrencies often have a decentralized control mechanism [5].
In D'Agnolo's article, cryptocurrencies are categorized into two types.First, cryptocurrencies are considered as centralized if they are minted, created, or issued by a single issuer.The other one is cryptocurrencies considered as decentralized control if each of them integrated through distributed ledger technology, a blockchain, that serves as a public financial transaction database [6].Bitcoin was the first decentralized cryptocurrency released in 2009.More than 9,000 other cryptocurrencies were available on the market as of March 2022, more than 70 had a market capitalization above $1 billion.
The term "crypto" refers to unchangeable coding methods used in the blockchain code, which gives virtual, digital, or "crypto" currencies like bitcoin its name.With the help of a global payment system, Bitcoin aims to eliminate the need for a centralized third-party middleman like a bank and enable direct online payments from one party to another.Even today, most nations do not recognize bitcoin as legal tender-that is, as a legally recognized national currency-because it is not issued by any central bank or government.Bitcoin's apparent scarcity and the notion that it can be used as a store of value, an anonymous form of payment, or a hedge against inflation, like physical gold, are what give it its worth, however none of these qualities have yet to be proven over an extended period of time.
There is also Tether, is an asset-backed cryptocurrency stablecoin, also known by its currency .It was introduced for the first time in 2014 by Tether Limited Inc. Tether is a blockchain-based technology made to make it easier to utilize fiat money online.Through a more cutting-edge approach to money, Tether aims to upend the established financial system.Tether has advanced by enabling clients to transact with conventional currencies via a blockchain without the inherent volatility and complexity often associated with a digital currency.Tether has democratized cross-border transactions via the blockchain as the first blockchain-enabled platform to enable the digital use of traditional currencies (a well-known, reliable accounting unit).
The next one is Ethereum, Ethereum is an open source, decentralized blockchain that supports smart contracts.The system's native cryptocurrency is called Ether.Ether has the second-highest market capitalization among cryptocurrencies behind bitcoin.Programmer Vitalik Buterin came up with the idea for Ethereum in 2013 [7].
The diversity in Metaverse has attracted a lot of attention from various circles, not only individuals who have joined the Metaverse but also industries.Here are a few examples: in December 2021, Nike and Adidas officially joined the Metaverse by releasing their first NFTs on December 17, 2021.Every purchase of Adidas NFTs will receive exclusive access to the original Adidas experience and products.Adidas has also acquired virtual ground in the sandbox for an entire experience.Not only them, but also a banking institution in Indonesia, Bank Rakyat Indonesia (BRI) will also present a world of Metaverse in the company's banking service sector in October 2022.BRI invites WIR Group, an Augmented Reality (AR) technology-based company, to work together in developing banking services in the Metaverse world.
Besides the interesting aspects and brilliant ideas about the world of Metaverse, there are still many obstacles found while developing this project.The Metaverse emerged due to the absence of laws and standards that can regulate and maintain virtual assets.It is said to be quite difficult to apply the laws and standards of the real world to the Metaverse world.This drawback may have a negative impact on many aspects.
Therefore, these important questions need to be discussed.Whether the Metaverse is just a short-term popularity or will become a promising platform in the future, determining kinds of assets in the Metaverse and what is the appropriate accounting standards to evaluate them, amortize them, and disclose them.

Metaverse
According to research entitled "An evaluation of sizeresolved cloud microphysics scheme numerics for use with radar observation", the term "metaverse" refers to a computer-generated environment that blends the physical and digital, in which people interact through digital avatars on the internet."Meta" refers to transcending or beyond, while "universe" refers to the world as a whole.They also mentioned that everyone in the Metaverse has an individual avatar that they can use to represent themselves and live a different virtual life..Besides that, users can engage in a wide range of activities in the Metaverse, including playing games, watching concerts, showcasing artwork, and exchanging virtual goods and properties [8].
In Alang's article, He said that while considering the Metaverse, the first question to ask is whether it is something you want.He also said that there would be a lot of effort done to develop technology for the Metaverse and that this is not just a single product presentation but rather a lot more.He used the Uber program as an example to illustrate this.According to him, Uber is more than simply a phone app for making car calls; it is an infrastructure that encompasses the entire transportation infrastructure.He said that the business wants to be the layer of technology that not only powers vehicles but also bikes, scooters, public transportation, and ultimately autonomous cars.Uber, however, decided to sell up its independent car branch after realizing how challenging it would be to solve the self-driving car issue.[9].
Another source explained that to create innovative research, it is essential to examine, integrate and repurpose important findings from prior research.He underlined the importance of information regulation in shaping society and argued that information had become the most essential resource for the future of late modern societies [10].A strategy for organizations, nations and companies can emerge with information that is processed in the right party [11].
Rotolo's study implied that technology assessment, innovation policy analysis, and science and technology foresight are common strategic intelligence methods.The outcomes of policies and actions carried out throughout specific time periods in such strategic associations can be seen through the application of bibliometric or scientific metrics for common science and technology assessment.In this sense, the Metaverse is one of the most recent technical innovations in a world that is changing very quickly.It is beneficial to observe and follow the literary equivalents of the talks in this direction [12].

Intangible assets
According to the understanding of International Financial Reporting Standards (IFRS), Non-financial assets that cannot be physically touched are known as intangible assets.When such assets are separable or result from a contract or another legal right, they can be identified.Assets that can be divided up can be sold, given away, licensed, etc. Computer software, licenses, trademarks, patents, motion pictures, copyrights, and import quotas are examples of intangible assets.IAS 38 does not apply to goodwill acquired through a company combination because it is accounted for in accordance with IFRS 3. Internally generated goodwill is covered by IAS 38; however it is not recognized as an asset because it is not a resource that can be identified [13].

Non-fungible tokens
Non-fungible tokens (NFTs) are non-fungible data units kept in a digital ledger.These tokens were used and fuelled the Metaverse' progress.NFTs could be arts, images, videos, or items within a game.In terms of accounting, regardless of their classification, NFTs are considered as assets.The holding in NFTs is recorded in blockchain technology, implying that Metaverse allows to create, acquire and buy up sort of digital assets.In particular, these assets will be traded in the Metaverse using Cryptocurrencies [14].

Blockchain
Blockchain is a distributed ledger that is built by connecting a sequence of blocks.Each block, which serves as a log of financial transactions, is connected to the others by cryptography.Only approved transactions that have received the nodes' approval are recorded.Each network node must solve difficult mathematical calculations in order to accept the exchange validation of reward, such as cryptocurrency.Nodes are machines that have previously enrolled in the chain.Decentralization, encryption, security, the ability to move the source of ownership, ongoing updates, and permanence set this system apart.[15].

Valuation theory
Valuation theory means that something that has value is something that investors desire and value is not always associated with price.In contrast, price is related to the exchange rate of goods against money [16].It means that investors will appreciate something that has value if the value or when the valuation goes up, the price also goes up.Value in investment is an impression that reflects how expensive a company can be owned by investors when it is sold.Value theory provides an expression of core values that have been determined within the company itself.

Diffusion of innovation theory
One of the earliest hypotheses in social science, the diffusion of innovation was created by E.M. Rogers in 1962.This theory describes how a new idea or product gains traction and diffuses (or spreads) over time among a particular group of people or social structure [17].
In this study, the valuation and innovation theory is used to analyse the assets of Metaverse and how they will be valued from the accounting view in the future, considering they are still under development.

Research questions
The emergence of digital technology in our day and age has given rise to the research questions.One of the numerous factors that has had a significant impact on society is NFTs and Metaverse.Schaar and Kampakis argued that many investors would view the market's expansion for NFTs as a fresh opportunity.However, due to the infancy of the area, the economics of NFTs are still not well understood [18].Few questions emerge from the statement above: 1.What do you know about Metaverse?What are the real impacts of Metaverse in daily life? 2. How was the development of Metaverse?3. Does Metaverse is a temporary phenomenon or has a promising opportunity in the future?
The Metaverse has its own currency called Tokens, which have been discussed in previous subsection 2. 3. New types of trust are accessible in this economy to prove and record the ownership through receipts.Every digital asset, as well as digital contracts, is assigned a unique code.Every physical item is assigned to the code that symbolizes it.NFTs are a sort of digital asset that can be controlled, exchanged, and owned.Other questions are arisen: 1.Why individuals choose to acquire, trade, or invest in NFT or Crypto? 2. Do they know how to valuate their digital assets?
What is the relevant accounting treatment for these assets?3. What are the benefits of trading and investing in NFT or Crypto?
It implies that there will be measurement and accounting disclosure issues that were not previously addressed, but that the writing about digital currencies as digital assets in Metaverse can serve as a reference.The debate has not yet been settled in this way, though, as businesses examine several international accounting standards and guidelines to decide which classification is most appropriate.
More questions to complement this research are: 1. Are there any obstacles regarding the assets or activity in Metaverse?
2. How to overcome these encountered issues related to them? 3. Any tips or how to manage finances before trading or investing in NFTs or Cryptos?

Research methodology
The method being utilized in this study is a qualitative method employing an experience question descriptive approach that focuses on analysing the impact of NFTs and the Metaverse, according to NFT users or Crypto holders, gamers and experts who were born in Generation of Z [19].Both primary and secondary data were combined to answer the research questions.Secondary data obtained from dependable sources, such as journals, books, and websites, that would support the research questions and primary data from the recording made by interview with participants through online media as Zoom, Discord, and WhatsApp call.The interviews were performed in semi-structured interview-where we provide the main questions and additional questions that might occurred spontaneously during the interview session to get more clear information-to discuss the predetermined subjects, and participants were free to respond depending on their experience [19].The interview begins with questions for descriptive statistics, like age, occupation or job position, and income range.Then proceed to general questions as an initial visual whether the participant is an experienced user, a casual one or just an enthusiast but not yet joined this Metaverse community, in this way: 1. Are they a gamer or NFT user or Crypto holder? 2. What kinds of NFT or Crypto do they have?3. What kinds of game do they play?Is it only an interactive game or also a play-to-earn game and have its own token?
And then continue with the detailed questions as we already explained in previous section 3. We analyze the data using thematic analysis, by creating data-coded, highlighting the important information, from each participants' responses and validate those codes according to our participants' criteria and their knowledge about the topic, to see if they are suitable to the research' theme or purpose [20].

Results and discussion
Participants who were successfully interviewed included millennials and generation of Zs; with the scope of profession are students, freelancers, interns, accounting staff, media relation officer, digital marketing, auditor to cloud engineer; the average income per month is above a million rupiah.Based on thematic analysis, the results of the interviews are presented in detail into seven subsections as follows:

Impacts and development of Metaverse in life
According to the interviews, most of the participants agree that there is no significant impact in life.Based on the information from RA (2023) there is no impact from the existence of Metaverse because the Metaverse itself is still a prototype and under development.The impact of Metaverse could not be felt due to the lack of public enthusiasm for using this platform.In addition to their statement, the development was considered only a shortterm popularity because the public was more familiar with Roblox as a virtual platform compared to Metaverse.There are several aspects of the Metaverse that will only become popular for a moment, such as NFT and Crypto, while AI in the Metaverse has the opportunity to be more sustainable in the future.In addition, there are not many impacts of Metaverse yet, but they believed that it would have a huge change if there were implementation of AI technology in Metaverse.Metaverse is still like a trend but if it continues to be developed then Metaverse could become a promising platform.Metaverse still has room to improve because the initial concept was spectacular, but the execution has not yet been successful, the system is still not solid, and the token market also not yet sustained.In RJ (2023) perception, Metaverse will be more sustainable if the number of Metaverse enthusiasts and users are equal to the number of digital asset holders.
Not only that, but we also got positive responses from some participants.Users can learn and explore the components of Metaverse, especially its 3D interface.AA (2023) stated the impact of Metaverse is felt through the influence of COVID-19 pandemic which is the driving factor for the emergence of Metaverse, namely increase in time efficiency due to all activities at that moment being carried out virtually.But currently the global officially announced that COVID-19 has become endemic, so that the future development of Metaverse cannot be predicted.SH (2023) said there is no issue in developing Metaverse, but it is more focused on "how" people decide to use it and give the impact, it may have promising prospects in the future but still a mystery when it will happen.
In AF (2023) point of view, Metaverse is a multifunctional platform because it can be used as an entertainment platform as well as a business platform.Metaverse can also be used for the education sector so that learning media becomes more attractive for students and teachers (AM, 2023).FQ (2023) also feels that it is easy to interact and connect with users from many countries through Metaverse, but its development is still in its early period.Metaverse has grown a lot compared to five years ago, but AA (2023) debated it because the development was stagnant from two years ago since Mark Zuckerberg announced his Metaverse project and rebranded Facebook as Meta.Some participants think that we should be ready to face the future with the probability of Metaverse getting bigger because it is related to our life where we use many digital platforms to do transactions, and it is possible that Metaverse will have their own government.
Another argument revealed that the development of Metaverse is slowly falling behind due to the new establishment of Artificial Intelligent (AI) chatbot called ChatGPT.Referring to CNBC Indonesia (2023), which amplifies this argument, Meta officially announced the termination of the Metaverse and NFTs projects to move on to enhancing its AI strategy, considering that currently the world is shocked by ChatGPT which has become a huge success.Meta continues to lay off its 10,000 employees for restructuring purposes after spending millions on the Metaverse project.[21].In addition, several complaints were filed by some Meta employees while running the Metaverse project, where changes in strategy frequently led to Mark Zuckeberg's ambitions rather than the initial plan itself, quoted from The New York Times, October 9, 2022 [22].Not only internal issues from Meta, but also the unstable global economy is an external factor why the development of Metaverse and NFTs are shrinking.AA (2023) also added that the opportunity for Metaverse to become a virtual platform is greater only for the gaming sector compared to other sectors, because most business operations cannot fully implement Metaverse and still require some activities in real life.

Perceptions about digital assets
The interviews and the literature study stated that Metaverse has many kinds of virtual assets.Most of participants agree that NFTs, Crypto, wearables and virtual land are the most common digital assets in Metaverse.NFT (Non-Fungible Token) is a token duplication of a work based on blockchain technology.According to the interview, NFT itself is very broad because it can be in the form of works of art or anything, even a game that has its own token can be traded.Some of our participants are digital asset owners.They have tokens that they got from playing NFT games called Dogami, PokemonGO, AXIE Infinity and GMT as well as Cryptos such as Bitcoin and Ethereum.Their Cryptos consisted of XRV, XIBA, Doge Coin as well as playing a game called The Sandbox.Some of them are also BNB holders, NFT designer, and former user of NFT games.
Each user has their own reasons why they decide to get digital assets and take part in Metaverse.Firstly, it is because NFTs, Crypto and Metaverse are a new technology and captivating to explore them.The next reason is because of other people' influence and ask them to join Metaverse ecosystem either as a user or NFT designer.Meanwhile, some were curious about the mega trend of Metaverse during the COVID-19 Pandemic, so they decided to join as an NFT user.In contrast, SH (2023) was a former NFT user and joined because for future investment, as inflation is getting worse and many nations are facing high inflation after COVID arises, she found that it is not worth her money and decided to quit for a while.
On the other hand, few participants are interested but have not yet joined the Metaverse.Although NFT was taking their attention because it has unique features and characteristics and one of our participants considering selling their art in NFT, although they do not fully understand how that digital asset works.HR (2023) said virtual land stole his attention because he thought it could be leased to others and gain some passive income.SN (2023) is interested in Crypto because it already has their own regulation and is safer than NFT but still has no idea whether to join this ecosystem in a short time or not.Hence, it can be underlined that someone's interest to own digital assets is initiated by curiosity from some influence, so that only those who have enthusiasm for technology are familiar with digital assets in Metaverse.As a result, digital assets are still not widely known at all levels of society.The research also revealed one of the reasons why digital assets have not reached all levels of society, especially in Indonesia, is because the distribution of technology and its infrastructure like the internet in every region is still very low.Nevertheless, only those who have capability in terms of technology can reach it all.In AA (2023) perspective, curiosity, provided technology and enthusiasm without having a strong or logical reason to obtain those assets, will not motivate enough for individuals or entities to buy or invest in NFT, Crypto or any digital assets.They believe that digital assets are only suitable for short-term investments due to the high risk because the market is strongly dependent on users' demands.Another argument said that Metaverse lacks openness for promotions to reach all levels of society, so not many people know even though Metaverse has many advantages.
According to all responses in subsection 5.1 to subsection 5.2, if we associate them with the Diffusion of Innovation theory, the results show that the Metaverse and its digital assets have not yet gained momentum and has not spread well across each stratum in society.Theoretically, knowledge of a population's characteristics is required before dispersing and starting to promote the idea or product into society.This step determines whether the community can perceive it well or becomes hampered.This is yet to be reflected in the Metaverse.

Accounting treatment and valuation of NFTs and Crypto
Currently, either global or Indonesia, there are no accounting standards that specifically manage and evaluate digital assets like NFTs and Crypto, therefore the accounting treatment for these assets depends on the intention and purpose of the user or entity to treat them.For example, the assets are held for sale or designated as intangible assets.

NFTs and Crypto as assets held for sale
If a user or entity treated NFTs and Crypto as assets held for sale, the appropriate accounting standards to be used are IAS 2: Inventory and Indonesia Financial Accounting Standards (IFAS or PSAK) 14: Inventory.In general, the initial measurement of inventory is recognised at the lower of cost and net realisable value (NRV), where NRV is the estimated cost of completion and estimated selling expenses [23][24].PSAK 14 requires choosing one of two cost formulas to manage inventory items which are commonly known as first-in, first-out (FIFO) method and weighted average method [24].In this case, where NFTs and Crypto markets fluctuate, the user or entity is also enabled to measure the inventory at fair value less costs to sell [23].
The cost of NFT or Crypto consists of purchase price, irrecoverable taxes-except for NFT because there are no tax regulations yet-and other direct costs such as processing fees [23].NFT and Crypto market instability and platform can affect the rate of recovery of NFT and Crypto' cost.The decline in market demand resulted in a decrease in selling price, platform issues, increased in estimated selling expenses are some circumstances that can make the cost of NFT and Crypto may not be fully recoverable [23].Consequently, the user or entity that uses lower cost and net realisable value needs to estimate the net realisable value in each reporting period.The inventory should be reduced to its net realisable value with the amount being recorded in profit or loss, reversal can be done, if only the situation has been better, but limited to the amount that was previously written down so that the carrying amount does not exceed the original cost [23].
If the user or entity measures the inventory at fair value minus costs to sell, ensure that there is an active market.Additionally, at each reporting date, the costs of selling must be calculated by taking transaction fees and other fees into account.In addition, any adjustments to the recognized amount should be included in the period's profit or loss [23].
For user or entity who use lower cost and NRV measurement, it is necessary to make a disclosure which consists of carrying amount by class; accounting policy for the measured inventory; the quantity of inventory recorded as an expense for the time period, as well as any reductions and adjustments to net realisable value reported in profit or loss along with the reason for the reversal.Whereas those who use fair value less costs to sell measurements need to make disclosure regarding the carrying amount of inventories carried at fair value less costs to sell, as well as disclosure under IFRS 13: Fair Value Measurements might be applied [23].

NFTs and Crypto as intangible assets
If a user or entity treated NFTs and Crypto as intangible assets, the suitable accounting standards to be used are IAS 38: Intangible Assets and PSAK 19: Intangible Assets.In general, the initial measurement of intangible assets recognised at cost, where the cost for NFTs and Crypto consists of the purchase price minus the discount, if any, and other transaction costs [25][26].Then the user or entity needs to determine the subsequent measurement approach for its digital assets.
The cost model approach requires subsequent measurement at cost less any amortisation and impairment [25].Users or entities need to assess whether their NFTs or Crypto fall into the category of assets with indefinite useful life or definite useful life.If it is accounted to indefinite useful life, no need to amortise the assets but make impairment test periodically, at least annually, to see if there any sign of impairment or not.So that if the assets are impaired, then users and holders are required to reduce the carrying amount of NFT and Crypto to its recoverable amount and record the writedown in profit or loss during the period.If in the future the value of the impairment loss decreases or even no longer exists during the testing, then the reversal can be recorded referring to IAS 36: Impairment of Assets.Vice versa, if it is included in the definite useful life, it is necessary to amortise them over useful life [25].
Revaluation model approach is only used if the fair value of NFTs and Crypto can be determined according to reference of active market [25].These assets can be measured at fair value on the date of revaluation less any amortisation or impairment losses.Net increase in fair value exceeds the initial costs recorded in revaluation reserve through other comprehensive income (OCI), while net decrease below initial costs is recognised in profit or loss [25].
For user or entity who use cost model approach, it is necessary to make a disclosure which consists of class, reconciliation of beginning and ending carrying amounts, assessment whether the NFTs and Crypto classified as indefinite useful life assets, and, if so, the reasons to support the assessment, and description of individually of material holdings [25].On the other side, those who utilize the revaluation model method must disclose information on the class, the effective date of the revaluation, the reconciliation of the opening and closing balances linked to the gain in the revaluation, and the carrying amount that would have been recognized if the cost model had been used [25].
The real practice in Indonesia, PR (2022) summarises that from an accounting perspective, to figure the value of NFTs and Crypto as intangible assets, it is from the price of the first launch or the lowest price.If the asset is purchased higher sometime later, then an adjustment or evaluation will be needed.These digital assets can increase in price based on supply and demand if the investment demand is higher than the supply.The professionalism of a developer can also determines the market price of the NFT project, if the developer does not run the NFT project according to the roadmap, then the valuation could drop significantly (AT, 2022).However, because NFTs are still very new in Indonesia, there is still no government regulation.So, we still have no idea whether these NFTs can be recognized as an investment asset or not.In addition, NT and DD (2022) agreed with PR (2022), they think that the regulation is needed to acknowledge these assets.
Based on our respondent, DigitalX Limited which is located in Australia, is a company that already implemented an inventory method and intangible asset method for its digital assets.In its consolidated financial statements for the year ended June 30, 2022, the Group used existing accounting standards of AASB 102 and AASB 138 for its digital assets.AASB 102 and AASB 138 are equal to IAS 2: Inventory and IAS 38: Intangible Assets, respectively.

Challenges in NFTs and Crypto
According to participant's experience, few challenges arise while trading with NFTs in Indonesia.Firstly, a complicated procedure where you must convert your currency into cryptocurrency before buying NFTs.Apart from that, the NFTs are also subjected to a huge amount of processing fee, which can be equal to the NFT itself or even greater.Another problem is the market price plummeted due to the large number of users who quitted the ecosystem.As a result, some users might have started to check on another instrument that is more stable like mutual funds.Meanwhile, some participants argued that the obstacle that may arise is the risk of tax evasion or even money laundering due to the absence of regulations to control NFTs as well as Metaverse, and NFTs themselves apart from central bank' supervision.Servers taken down by developers, server bugs and overloads that cause loss of assets also become issues while trading or investing in the Metaverse.AZ (2023) explained that the problem that might arise if she put her arts into NFT is consumer desires that can change rapidly so that it has the potential to become a fast market.The internet connection and possibility of scams, hacking or phishing are also part of threats when trading or investing in Metaverse.PT (2023) has experienced it, delayed responses from the developer due to a system bug on crypto wallets that caused the loss to all users.Similar experience also happened to AT (2022) where his Crypto-wallet and NFTs are stolen by hacker.Currently there is also a feature called Airdrop where users can receive tokens or crypto for free by clicking on the link to claim their assets.The feature itself obviously has a high potential to bring the opportunity of phishing assets if the user is new to NFTs, Crypto and Metaverse.
According to PR and DD (2022), the lack of NFTs is the presence of work plagiarism.Hence, it becomes a challenge for accountants because we must understand where this work comes from and its background before conducting an audit.It will be difficult to put a lawsuit in the NFTs because no regulation supervises them, so it is easy to do and can be used for fraud schemes.
From a tax perspective, cryptocurrencies already have their exchange and have been identified as income tax and taxpayer investors must enter crypto in the Tax Return, meanwhile NFT itself has not yet been recognized.As a result, these assets can be an opportunity to sell money to avoid taxes so that the perpetrators make sales and purchases with their account.
In Indonesia, virtual assets may be recognized as investment assets, but not soon.We can see that the Indonesian economy itself is still less stable.And judging from the infrastructure, even Indonesia cannot do it completely virtually, so Indonesia is still not fully ready for the metaverse world soon.
As individuals who not yet join in NFTs and Crypto, lack of information, knowledges and insights about these assets are also become a barrier that they need to solve before entering this ecosystem.

Solutions
In pursuance to the interview results, several solutions are needed to deal with the drawbacks in NFTs and Crypto that have been discussed in subsection 5.4., both from platforms and users.For platform developers, Crypto exchange companies or Metaverse marketplaces must implement know-your-customer (KYC) checks verification before trading and investing, so that the data input into Metaverse blockchain can be traced if there any illicit activity or malicious transactions that indicated of money laundering.The implementation of KYC checks is generally used in top-tier Crypto exchange companies before users buy the digital assets, but it is not required in Metaverse marketplaces [27].One that has implemented KYC checks in the Metaverse marketplace is The Otherside launched by Yuga Labs [27].RA (2023) stated that platform developers need to make a comprehensive official procedure related to any possible issue that might counter the users so their assets will remain saved.Aside from that, most of participants also agreed that a proper regulation is needed to settle all activities flows, in terms of accounting, taxation, legal and intellectual rights, and so on.
Each user should be careful, explore and must fully understand about the type of the assets they want, the platforms, the systems, and the procedures of the transaction before deciding to trade or invest.In detail, background checking of the platform and whether it is authorized by the Financial Services Authority or not, are necessary.Downloading antivirus or anti-malware and making sure not to click on suspicious links are also a part of preventive steps to minimize the risk of getting hacked.In NFT art community, building a personal branding as an NFT artist is another preventive step, so that people in community will be able to recognize if an art or design has been stolen and report it to developer.Not only that, but also the community within the Metaverse needs to be encouraged and maintained to keep the market flow.Seminars, sharing sessions or blogging through social media about digital assets could be another solution to improve and gain more insights and knowledge so it will be a helpful guide before joining Metaverse ecosystem.

Metaverse
In accordance with the participants, to trade and invest in Metaverse depends on each user how well they understand the assets and the platforms.In addition to the statement above, MK (2023) said that if we are not familiar with Metaverse, either the components or the existing procedures, it will be complicated and confusing to make transactions, investments, or events just to interact.Trading and investing in Metaverse might give a new and interesting experience, and probably more convenient compared to ordinary shares.SH (2023) explained some of trades or investments are secure but some of them are not, so it is best if all developers can make the platform to be more secure, as hackers are persistent, and it will be hard for the developers to regain the users' loss once they took all the money.According to that, trading and investing is more preferrable in a stable platform, which means the developer is clearly professional to build the platform based on their roadmap or mind map as their fundamental, for example like a platform of NFT project called Azuki.A different view comes from DV and KV (2023), as for now the concept of Metaverse is still too abstract and uncertain, thus it is too risky to trade and invest with NFTs, Crypto or any digital assets.Not only that, but also a competitive market exists in Metaverse.Although digital assets are known to have high risks because of their fluctuating market prices, according to our participants' response, trading and investing with digital assets can still be done safely by only allocating no more than 10% of the total income or maximum at 30% of total income.In detail, 50/30/20 rule also applicable where 50% towards essential items, 30% towards tertiary needs which can be used for trade or investment in Metaverse, 20% for saving.Meanwhile, AA and MS (2023) believed that using idle money is enough for trade and invest in Metaverse.Other participants are still blurry about it because some of them are using Metaverse only for interact-purpose and few of them are not yet joining the Metaverse.

Metaverse
Although the implementation of Metaverse still needs some improvements, The advantage of trading in NFTs there are no duplicates of either the asset or its ownership, because each asset only has one unique token code that cannot be owned by other types of assets and ownership cannot be shared by other users.Hence one asset, one token for one user only.According to the interview, the benefit of having NFTs is as a new source of passive income, while Crypto can be used as investment.It is also to generate capital gains.The advantage of trading or investing in Metaverse is the chance to live better from the cash generated from it, but also come with disadvantage of loss if we are careless while it can also be an opportunity to provide new employment.The research also revealed that the benefits of trading or investing with digital assets are self-satisfactory.
On the other hand, as individuals who have not joined the Metaverse ecosystem, it is hard to see the benefits of trading and investing at this moment.In contrast, as a positive response from non-user, the benefit of trading and investing in Metaverse is that the range of this platform is much wider and not hindered by physical form.As a user, they felt that trading and investing can help them to expand relation, while PT (2023) have not experienced any advantages because he still finding way to understand the game, but according to its mechanism, it has a gacha system where players will play or pull with its token to redeem such virtual items.Some participants also have not benefited from trading and investing, thus they decided to quit for a while.The reason why the advantages have not directly benefitted the user because there is still no media that would connect the platform and real world.
As already mentioned in subsection 5.6, Participant uses Metaverse for interact-purpose and has not reached to trading and investing.Therefore, some have not experienced it.Lastly, the rest have not figured out about the benefits of trading and investing that they might get if one day they will become NFT users or Crypto holders.

Conclusion
Metaverse is the most recent technology that aims to drastically alter the way individuals interact with society through virtual platforms.Overall, our research conveys multiple perceptions about this ecosystem, where 30 individuals are being interviewed about their view regarding Metaverse and its digital assets.The responses are analyzed and validated by the knowledge of our participants regarding the Metaverse, we extract responses from participants who have extensive knowledge of the Metaverse and those who have invested on NFTs and Crypto.
This research revealed that the Metaverse ecosystem is still in its early stage, where the impacts are not fully there.Metaverse faced many challenges due to its development still in progress, starting from the absence of regulations, lack of public enthusiasm, volatile market, systems issues and Metaverse project' termination issue.Furthermore, it needs to be addressed in line with the progress of the development.In other words, the Metaverse has not yet in line with the Diffusion of Innovation theory, where an idea or product supposed to be fully diffused among public.This is proven by the responses of our participants where even among the gamers themselves there are those who have heard of the Metaverse but do not know about further development of the Metaverse.
NFTs and Crypto are few of the example of digital assets in Metaverse.This research also show that the valuation of these assets relies on each user objective, how they want to treat the NFTs and Crypto, to apply the appropriate existing accounting standards as long as meet the criteria since there are no peculiar standards related to these digital assets.According to Valuation theory, we can conclude that investors are able to make any investment in NFT or Crypto since it can be valuated or assess the value.Although it is just few participants who have contributed to trade or invest in NFT or Crypto according to our interview, we strengthen our research by adding figures from a technology-investment company from Australia named DigitalX Limited as an example of entity who already valuated and applied accounting standards to its digital assets based on inventory method and intangible assets method.
While we establish this research, limitations of previous research studies and finding participants who agreed for an interview became a challenge for us because the topic of NFTs, Crypto and Metaverse is still relatively new.Apparently, when it comes to specific questions, some of the participants are finding it difficult to comprehend and elaborate it according to their personal experiences.Hopefully, this research can be useful as a reference for further research in the future and deepen the knowledge about Metaverse and its digital assets.

Fig. 3 .
Fig. 3. Explanation about Digital Assets-Accounted for using intangible asset methodology