By applying the definition provided in IAS 21 The Effects of Changes in Foreign Exchange Rates, the following items will be regarded as a monetary item:
A) property, plant and equipment;
B) land and buildings;
C) inventory;
D) accounts receivable.

Question

Quizplus · Accepted Answer

According to IAS 21, a monetary item is "an amount of a currency held and assets and liabilities to be received or paid in a fixed or determinable number of units of currency." Accounts receivable meet this definition as they involve the receipt of a fixed or determinable number of units of currency. Property, plant and equipment, land and buildings, and inventory involve physical assets and are not monetary items.

By Applying the Definition Provided in IAS 21 the Effects