monetary items

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.
References in periodicals archive ?
5% of sales, a year ago as a result of lower gross profit, partially offset by a reduction in selling and administrative expenses related to year-over-year variations in the currency translation of net monetary items.
Such monetary items are deemed to be acquired at the year end date.
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.
segment; $200,000 in unrealized gains on monetary items, partially offset by a $117.
8 million unrealized foreign exchange loss on monetary items,
6 million), including gains on the revaluation of foreign currency monetary items of CAD$160 million.
Additionally, FAS33 classifies deferred policy acquisition costs and unearned property and casualty insurance premiums as nonmonetary, but American General (1981) believes these should be classified as monetary items.
However, there will always be differences of opinion as to fair value of monetary items, book value of long-lived assets, intangible assets, allowances for future troubles, etc.
items outstanding for more than one year) foreign currency denominated monetary items are, for LCT purposes, a "reserve" under subsection 181(1) and, hence, included in the calculation of taxable capital.
The contract also includes two new monetary items, a profit-sharing plan and an "inflationary recognition program," both of which are linked to the company's economic performance.