unit of account


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Related to unit of account: Store of value

Unit of Account

A measure of an amount of money. Units of account, for example, divide one dollar into 100 cents or one pound into 100 pence. Units of account are somewhat arbitrary, but are necessary to measure value and price fairly.

unit of account

see MONEY.

unit of account

an attribute of MONEY that enables people to use money to measure and record the value of GOODS and SERVICES and financial transactions. A unit of account may take a physical form, for example CURRENCY, or may be an intangible ‘book-keeping’ asset such as the SPECIAL DRAWING RIGHT and the EUROPEAN CURRENCY UNIT.
References in periodicals archive ?
Arguably, the US and many other countries already have an electronic unit of account and electronic unit of price quotation in the sense of this thought experiment: suppose the exchange rate between paper currency and electronic money departed from par, but the central bank and the rest of the government maintained a studied neutrality about what the unit of account should be (including somehow making the two accounting systems equivalent as far as taxes go).
We'll still need a store of value, a transaction mechanism and a unit of account.
The idea is that, by providing a better global unit of account whose definition is widely accepted, it will enable others to devise ways to make it a medium of exchange and a store of value.
Another unit of account will gradually take over in international financial transactions, crowding out the U.
In addition, no explanation is provided why each research project in the example constitutes a separate unit of account or how the enterprise determined the proper unit of account.
The government (or agency) need only define an indexed unit of account, like the unidad de fomento introduced in Chile in 1967.
A functioning financial system in Russia "can only be built around a stable unit of account -- a ruble of known and predictable value.
As a common unit of account, a single currency (potentially the ecu) would provide companies that have operations in more than one member state with one currency for accounting purposes, thus simplifying administrative procedures and aiding efficiency and transparency.
The contract is for the supply of the unit of account, together with the operating system.
Therefore, the selection of a unit of account can affect the amount of tax exposure or benefit that may be recognized in the financial statements.
GoldGrams are the unit of account and will be the electronic form of gold owned directly by users of the system and held in a precious metals repository.
FIN 48 uses R&D credit projects as an example of a unit of account, and the IRS and state authorities often examine R&D credit costs by project.