Hey Guys, I know that Net Monetary consists of the basics such as A/R, Cash, A/P etc…
Are there any items that should fall into this in case they throw some others in the exam?
No, this is a pretty straightforward thing here. Don’t forget to think all liabilities too. That is why the company usually runs a net monetary liability, and inflation reduces this.
Cash, recievables and payables as monetary assets.
Short-term and long-term as monetary liabilities.
Per IAS 21.16:
“The essential feature of a monetary item is a right to receive (or an obligation to deliver) a fixed or determinable number of units of currency. Examples include: pensions and other employee benefits to be paid in cash; provisions that are to be settled in cash; and cash dividends that are recognised as a liability. Similarly, a contract to receive (or deliver) a variable number of the entity’s own equity instruments or a variable amount of assets in which the fair value to be received (or delivered) equals a fixed or determinable number of units of currency is a monetary item. Conversely, the essential feature of a non-monetary item is the absence of a right to receive (or an obligation to deliver) a fixed or determinable number of units of currency. Examples include: amounts prepaid for goods and services (eg prepaid rent); goodwill; intangible assets; inventories; property, plant and equipment; and provisions that are to be settled by the delivery of a non-monetary asset.”
Hope that helps!