Monetary/non-monetary method

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Monetary/non-monetary method

Under this translation method, monetary items (e.g. cash, accounts payable and receivable, and long-term debt) are translated at the current rate while non-monetary items (e.g. inventory, fixed assets, and long-term investments) are translated at historical rates.

Monetary/Non-Monetary Method

A method of accounting in which liquid assets are calculated according to their current market value while illiquid assets are calculated according to their historical value.