Monetary Item
Accounting glossary · Understand, connect, apply
A monetary item is cash held or an asset or liability that will be received or settled in a fixed or determinable amount of currency.
Example
A supplier invoice payable in a stated number of euros is a monetary liability.
Remember the difference
A prepayment that gives a right to receive goods is normally non-monetary. Assess what the entity is entitled or obliged to receive or deliver.
Browse the accounting glossary · Read the IFRS Foundation reference
Prepared with AI assistance. Examples are fictional and simplified for learning.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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