Monetary items

Accounting for the effects of changes in foreign exchange rates.

Monetary items include cash, loans, debtors, creditors and similar assets and liabilities.

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

• Exchange difference
• Foreign exchange
• IAS 21
• Monetary
• Non-monetary items
• Translation risk