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Monetary Items
(redirected from Monetary Item)

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Monetary Items
Assets and liabilities that are fixed in dollar amounts and are thus not affected by inflation. Examples of monetary items include cash, accounts receivable, accounts payable, bonds, and short-term loans. In periods of high inflation, holding monetary liabilities increases a firm's purchasing power, while holding monetary assets decreases it.

monetary items
Assets on a firm's balance sheet that are fixed in dollar amount. Cash, short-term loans, and long-term bonds are monetary items.


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Exchange differences arising on the settlement of monetary items and on the retranslation of monetary items are taken to the profit and loss account.
In subsequent years, all monetary items would be up for negotiation, when the district's financial picture is clearer.
For the powerless, the subjective value of monetary items is intensified and the physical representations of those items are distorted based on whether there is a positive (bigger is better) or negative (smaller is better) value relationship.
 
 
 
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