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Wednesday, 13 March 2013

The IASB has double standards

1. IAS 21, Par. 8: "Monetary items are units of currency held and assets and liabilities to be received or paid in a fixed or determinable number of units of currency."

2. IAS 29, Par. 12: "Monetary items are money held and items to be received or paid in money."


Here is the correct definition of monetary items:

Monetary items constitute the money supply.

For example: trade debtors (receivables) and trade creditors (payables) are not part of the money supply. They are not monetary items: they are constant real value non-monetary items.

 

Nicolaas Smith

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