Which of the following items will be regarded as a monetary item when applying the definition provided in AASB 121 The Effects of Changes in Foreign Exchange Rates?
A) property, plant and equipment.
B) accounts receivable.
C) land and buildings.
D) inventories.

Question

Quizplus · Accepted Answer

According to AASB 121, monetary items are those items that are to be received or paid in a fixed or determinable amount of money. Accounts receivable fall under this category and are considered monetary items as they are to be received in a fixed or determinable amount of money. The other options listed are non-monetary items as they either represent physical assets (property, plant and equipment, land and buildings) or items that are still in the production process (inventories).

Which of the Following Items Will Be Regarded as a Monetary