Nonmonetary assets and liabilities

Nonmonetary assets and liabilities

References in periodicals archive ?
i], which represents the increase in prices of specific nonmonetary assets and liabilities if [N.
From equation (4) and equation (5) we also know that the amount of net assets can be affected by several sources which are (1) the monetary and nonmonetary classifications [M, N, L, O], (2) increase in the prices of specific nonmonetary assets and liabilities position [[N.
When a country becomes highly inflationary, the accounting is as follows: Nonmonetary assets and liabilities (for example, fixed assets and the related accumulated depreciation) are remeasured from the local currency to the reporting currency (the new functional currency) at historical exchange rates.
Accounting problem: When a foreign economy ceases to be highly inflationary, should an entity's foreign subsidiary restate its functional currency (reporting currency) accounting bases of nonmonetary assets and liabilities to the local currency (the new functional currency) at current rates at the date of the change?
The difference between current and historical rate translations of nonmonetary assets and liabilities will continue to be a temprorary difference on which deferred foreign taxes must be provided.