Hi all, What are Monetary asset and liabilities ? I found a definition on this website : http://financial-dictionary.thefreedictionary.com/Monetary+assets+and+liabilities “Assets and liabilities with contractual payoffs” Monetary assets : cash + receivables so according to the definition inventories are not “monetary asset” ? Monetary liabilities : account payable + all debts ? long and short term ? should we include stuff like taxe payable ? Am I missing some other things ?
Id say taxes paybale are a monetary liability, someone else could confirm, but what you have above seems correct
Yes, monetary assets & liabs you have correct above. Taxes payable are NOT a monetary liability. If you can reference a problem that would help directly apply this.
Why are taxes payable NM?
I do not have any problem to reference. Since tax payable could satisfy the definition “Assets and liabilities with contractual payoffs” I was wondering if it is monetary. AndrewUNH Wrote: ------------------------------------------------------- > Yes, monetary assets & liabs you have correct > above. Taxes payable are NOT a monetary liability. > If you can reference a problem that would help > directly apply this.
ah i think i was wrong- taxes payable should be monetary
Anything that is fixed in the amount to be received or paid is monetary. Hope this helps if u come across ANY item on the B/S.
Thank you everyone!