Monetary asset

Accounting for the effects of changes in foreign exchange rates.

The essential feature of a monetary asset is that it is a right to receive a fixed - or determinable - number of units of currency.

Monetary assets include cash, loans and debtors.

Under IAS 21, monetary items are translated at the foreign exchange rate which applies on the balance sheet reporting date (the 'closing rate').

See also

• Cash
• Debtors
• Exchange difference
• Foreign exchange
• IAS 21
• Loan
• Monetary
• Monetary items
• Monetary liability
• Non-monetary items
• Translation risk