International Financial Reporting Standards definitions:
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.
So, if you buy a mobile phone on credit and pay it´s fixed price in two month´s time, then your mobile phone is a monetary item according to IFRS.
Obviously wrong.
2. IAS 29 Par 12 Monetary items are money held and items to be received or paid in money.
If you buy a mobile phone on credit and its fixed price is to be paid in two month´s time in money, then your mobile phone is a monetary item according to IFRS.
Obviously wrong.
The correct definition of monetary items:
Monetary items constitute the Money supply.
Updated on 11-05-2013
Trade debtors and trade creditors are constant real value non-monetary items.
Kindest regards
Nicolaas Smith
realvalueaccounting@yahoo.com
Copyright © 2010 Nicolaas J Smith
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