Monetary liability

From ACT Wiki
Jump to navigationJump to search
The printable version is no longer supported and may have rendering errors. Please update your browser bookmarks and please use the default browser print function instead.

Accounting for the effects of changes in foreign exchange rates.

The essential feature of a monetary liability is that it is an obligation to deliver a fixed - or determinable - number of units of currency.

Monetary liabilities include all liabilities that are to be settled in cash.

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